CVS Case Discussion

In 2002, CVS assembled a team of operations executives and managers for its Pharmacy Service Initiative (PSI). Although CVS was one of America's largest retail drugstores, problems in the company's prescription fulfillment process had caused significant customer defection, hampering the company's growth. The PSI aimed to streamline the fulfillment process.

The fulfillment process had five steps. In the first stepthe dropoffcustomers dropped off a prescription, and a pharmacy technician placed it into a wooden box that represented the customer queue. The next step, data entry, involved both an automated drug utilization review (DUR), which revealed any potential problems with the prescription, and an insurance check, which verified the amount of the patient's copayment. In the production and quality assurance steps that followed, drugs were counted and reviewed by a pharmacist to make sure that all the details of the prescription were correct. Finally, in the pickup step, bags were sealed and stored in the pickup area in alphabetical order where customers could pick them up after payment.

Please look at the prescription filling process and determine what can be done better. While the assignment covers specific changes you recommend, discuss the following here first:

- What would you describe the current state?

- If you wanted to change something about the process, how would you make the business case?