Case AnalysisPharmacy Service Improvement at CVSManagement Information SystemsCourse Instructor: Prof. Amit AgrahariTerm III

Group 3Khushboo Sharma ABM11027Rohit Gupta FPM15012Saurabh Agarwal PGP30276Swagato Das Chaudhary PGP30419Tanuj Lodhi PGP30420January, 2015

1. Introduction

Customer Value Store (CVS) is one of Americas largest retail drug stores with thousands of stores. The revenue of the company exceeds $24.2 billion, over two third of which is generated by pharmacies. Although the company is growing at market rate, on further analysis it has been found that the churn out rate is very high. All CVC followed a five step process to fill prescriptions as shown below.

Drop-off: In this first step the customer would deposit their script in the pharmacy and specify a pick up time. Data Entry: Patient, doctor, third party provider and prescription information was now entered in a central databases Production: The drugs to fill the script were counted and verified by certified pharmacy technicians in the production area which was near the shelves where medicine was stored. Quality Assurance: A pharmacist reviewed each script to make sure that it contained exactly the right drugs in the right quantities and that all other details were correct. Pickup: After Quality Assurance, each completed script was sealed in a bag. Bags were stored in the pickup area. The technicians staffing the pickup window searched for the right prescription among the bags, verified customers identities and took any required payments from them.2. Key performance Indicators for CVS store

There are various performance indicators in an organization like qualitative, quantitative, input, output & process indicators. Key Performance Indicators includes all the quantifiable measures that are critical to the success of a business. KPI should be specific, measurable, realistic, and aligned directly to the goal of the organization. KPI are importance because it Improve accountability, provide information & alternatives for decision making and opportunities for improvement.Key performance indicators for CVS store:1. Recognizing all the alerts for drug to drug interaction in Drug Utilization Review for Safety of customers. Safety to be taken as a priority issue. 2. Customer waiting time: The time between arrival of customer and order placement should be minimized. Pickup time to be minimized by ensuring flawless processing3. Average number of prescriptions per member per year. Tracking of the number of customers leaving/ joining per year to track the performance. 4. Quality assurance by ensuring that the drug dispense matches with the ones prescribed. The customers to be informed in case of unavailability of the drugs instead of replacing the product with other similar composition. 5. Drug utilization review savings per member per year6. Customer satisfaction survey. This may help take in qualitative inputs in the form of feedback and hence track performance subjectively7. Total number of complaints associated with customers8. Average time for complaint resolution3. Pharmacy Fulfilment Process (present)

4. Recommended Changes

Central Information SystemThe central information system shall enable a customer to login with a unique customer identity and track the order status. It shall also provide information on the status of insurance and prices of the products. This will reduce the customer waiting time and will eliminate activities that required confirmation in case of disputes. The automation will allow customers to track the exact delivery time and collect the order accordingly. Online platform for order placementUnder this activity, the customer will be allowed to view all the information regarding the potential order and place the order either online or at the help desk/ kiosk. This will allow the customer to get informed about the prices, insurance status and the availability of medicines before placing the order and hence eliminate problems arising due to unexpected bills and unforeseen denial of delivery of the products. Dispute Redressal mechanismInstalling a helpdesk at the pickup point may help direct dispute orders from the mainstream delivery and payment path. This will help seamless processing of undisputed transactions and hence save time of those customers who would otherwise be waiting to get the preceding customers dispute resolved.

5. Uniform Implementation

As CVS is a central repository, it should be considerably easy to make changes across all the stores. Head of the stores may be informed by mail about the new process that they shall follow. Ensure that the changes can be tracked on the centralized system by requiring constant updating. Monitoring the Key Performance Indicators for CVS store: Customer waiting time will get reduced Patient Satisfaction Survey will get improve Total number of complaints associated with patients will get reduced Average time for complaint resolution will get reducedOther options Training Proper training should be given to the employees about the new process and make them feel that new process is much better than the old one. Customers Guide An employee will be available to help out the customer to use the Kiosk Machine. A handbook/ booklet about the new processes and the ongoing changes in the organizations may be provided to keep the customers informed.

6. Enterprise IT capabilities

Enterprise IT capabilities specifies business processes that are implemented top to bottom level and are mandatory to use. Following are the IT capabilities that can be leverage here: Use of ERP integration systems with drug suppliers and inventory would help to monitor and control shortage of supply. A system can be used to decide on the basis of any optimization model to minimize the customer waiting time. A real time IT system can be implemented to monitor the flow of script over various processes. It will also provide a summary of issues encountered in the script. A system can be provide to automate SMS updates to customers regarding order status and to communicate change in delivery time if any. Using IT system to correctly predict the filling time required for a script using basis of order load and script nature. With this prediction pick time will be decided. Event efficiency can be monitored by using various software by knowing real time information like how many prescriptions are filled every day at each location.