Modeling Assignment Case: Pharmacy service improvement at CVS

Case: Pharmacy Service Improvement at CVS
INTRODUCTION
Consumer Value Store (CVS) opened in Lowell, Massachusetts in 1963. The company was one of America’s largest retail drugstores and had 4,000 stores and revenue of $24.2 billion by 2002. Generally, a company that serves pharmacy service must emphasize customer’s satisfaction, customer’s safety, and process efficiency. The purpose of CVS is to satisfy consumer’s needs, guarantee the accuracy of filling prescription and the health of customers, and improve the existing pharmacy fulfillment process. …show more content…

This problematic process will contribute to the dissatisfaction of customer and waste time for customers and pharmacy workers. The technician will spend more time to call pharmacists for the refill allowance.
At the production stage, the major problem is out of stock. The inventory is found to be lacking some important drugs that are prescribed for customers. This problem reduces customer’s satisfaction and trust because they cannot acquire the expected prescription at the pickup time. For considering CVS’s finance in the long term, the company will lose a lot of revenue from this problem and create unreliability for new and regular customers, so that customers will choose other pharmacies.
The quality assurance stage is one of the most important tasks for drug accuracy and patient’s health. According to CVS pharmacy fulfillment problems noticed by PSI team, prescription fills incorrectly sometimes. If patients are harmed by the incorrect prescriptions, CVS’s reputation and profit will be extremely reduced in a short run. The quality problem influences CVS’s organizational purposes including the escalation of customer’s satisfaction and the efficiency of pharmacy fulfillment process.
At the pickup stage, there are two major problems that technician cannot find script and customers cannot acquire unauthorized refills. Generally, pharmaceutical corporations are required to focus on drug accuracy and customer’s health. If