A CASE STUDY ANALYSIS
ON
PHARMACY SERVICE IMPROVEMENT AT CVS (A)
Submitted To: - Submitted By:-
Prof. Somonnoy Ghosh Deepak Kumar
Background of the Case:-
The case illustrates the power of the enterprise technologies, as well as the depth to which they transform companies that successfully put them in place. Customer Value Store faced increasing customer complaints that prevented the company from stronger growth. This problem was initially perceived to be due to poor customer service; however by historical data and customer interviews, Pharmacy Service Initiative (PSI) including “operations executives and managers”, “pharmacy supervisors, top pharmacists and consultants from the Boston Consulting Group” found that it was issues in the fulfillment process that resulted in customer dissatisfaction. The team was eager and enthusiastic to make “initiative” changes to solve the problem without compromising “customer safety”. The remaining part of this case study analysis is discussing about key issues found in the fulfillment process and recommend action steps to solve them.
Key Issues: 1. Lack of management of customers’ expectation
Due to the following reasons, the customers couldn’t get what they were expecting while they found fulfillment process too long. a) Unauthorized refills. Customers often didn’t keep “track of how many refills were allowed” and therefore submitted ineligible scripts. In addition, it normally took a day on average to get a response from a doctor to whether a refill was approved. This caused customers impatient and especially upset when refills were not allowed. b) Scripts rejected for payment by insurance. That the payers wanted to control their costs by delivering log rules about drugs, refilling time and payment conditions truly complicated pharmacy employees