CVS lost $2.5 million in revenue and 7.2 million customers last year due to issues with their pharmacy process. The document identifies problems with the drop off, data entry, production, and pickup stages. It recommends moving more processes to the front of the store when customers are present to decrease wait times. The new process flowchart shows data entry and insurance checks happening during customer consultation. Other recommendations include improving technology, call centers, and cooperation with doctors and insurance.

1. CVS/PHARMACY
Case Analysis for Team 5 Class 2 Fudan-MIT IMBA
Operation Li Songping Yin Xiaojun Yang Xi Yu Qian Peter
Management

2. Problem Diagnostic
7.2 million regular pharmacy customers left CVS during the
year
$2.5 million loss of revenue
Non satisfying customer service
Pick up: dissatisfied & angry customer, and stressed sales
people
Malfunctioned Process

3. Problem Diagnostic (Cont.)
 Drop Off
 No one manning drop-off station
 Data Entry
 No refills allowed on script (6%)
 DUR hard stop (20%)
 Insurance problems (17%)
 Production
 Insufficient inventory
 Quality Assurance (None Identified)
 Pick up
 Unauthorized refill
 Script not ready
 Script not covered by insurance
 Long lines of angry customers in rush hour

4. Original Process Flowchart
Drop
Scrip Pick up
t
Invisible Line
Put
Hard Packag
in
Stop e
slot
Data Insurance Producti
Refill DUR QA
Entry Check on
Dr. Call Ask for Dr. Denial
bin approval Box
Reach Dr.?
Dr. Call
Back
Bin

5. Recommendations to CVS
Principles Improvements
 Doesn’t degrade safety at all  Drop off, data entry,
 Decreases waiting time insurance check – all done
while customer is present.
 Improves customer
satisfaction  Call center & Action note
Information System Building Compliance
 Design  Be simple
 Standardization  Be Intuitive
 Monitoring  Make sense

6. Recommendations to CVS
(Cont.)
More processes in the Drop Off stage and over the visible
line
Invisible Line
Data entry Inscurance check Refill check

7. New Process Flowchart
Drop
Custome
Scrip Pick up
r Leave
t
Action
Consultation note
Data Insurance
Refill
Entry Check
Invisible Line
Dr. Call Packag
Reach Dr.? DUR
bin e
Dr. Call
Back Ask for Hard
approval QA
Bin Stop
Dr.
Productio
Denia
l n

8. Other necessary support
 Two counters at the drop off zone:
 Drop off counter
 Customer service counter
 More tech at the drop off zone, especially in
rush hours
 Improving cooperation with doctors and
inscurance
 Improving call center

9. Thank You!
Q&A