Caremark Rx

CVS Caremark– Supply Chain Analysis Supply chain is the flow of inputs into the company and flow of output out of the company to the customers. This involves suppliers, vendors, contractors, the principal business or producer, distributors, wholesalers, retailers and customers. Therefore, supply chain management has connection with other parts of the business from procurement of supplies to design to production then to sales and administration. It is an integral part of the business. Supply…

Industry Environment Walgreens is the top competitor in the retail drugstore industry. To date, approx. 10,000 stores. Other competitors include CVS, Rite Aid, Target, Walmart, and Kroger. Walgreens creates differentiation by increasing brand loyalty, market share and their Wellness Program. Walgreens offers consumers a variety of basic consumer goods. Walgreens has positioned its company as the market leader of innovative technology by offering cost effective solutions that provide value…

placing rival PBMs at a competitive disadvantage. A review of the early market responses to the manufacturer-PBM mergers indicates the "realignment" theory, so far, best explains the effect of vertical integration. Independence may even be a benefit. Caremark, an independent PBM which has supply arrangements with four major drug manufacturers, recently renewed a pharmacy contract covering 150,000 lives when the employer "ruled out two other competing vendors - DPS and Medco - because of their…