Consumer Value Store Case Summary

Hailing from Massachusetts in 1963, Consumer Value Store (CVS) is one of the leading retail drugstores in the United States. Its success is demonstrated in their more than 4000 locations and multibillion dollar revenue. More than two thirds of that revenue is produced by pharmacies. Despite a growing company and thriving pharmacy business, there were concerns relating to pharmacy procedures and customer service issues at numerous retailers, so a pharmacy service initiative (PSI) was established. The ultimate goal of the PSI was to grasp the actual condition of pharmacy customer services and to offer necessary solutions to the problems. The PSI team collected information by examining past data, analyzing historical financials, and interviewing past and present customers. Based on the discovery of …show more content…
Not only will this prevent problems in the data-entry phase by having the customer present to help resolve issues with insurance and refills, it will reduce wait times and improve customer satisfaction by eliminating unresolved problems at the pick-up window. Customers will then be aware of any problems filling the script before they leave the store, so they do not have to make multiple unnecessary trips. Secondly, inventory management can be addressed by making use of CVS’ current technology within their pharmacy software that allows automatic replenishment of inventory. This will decrease out of stock complaints, while reducing overall inventory, and improving inventory turnover rate. In the long-term, these recommendations will result in better customer service, thus minimizing customer losses and revenue deficits. By preventing revenue losses, GM% will increase, improving profitability (Appendix