Process Selection

The type of product flow that CVS Pharmacy uses can be classified as a batch flow. They have medium volume and medium variety and there are a few stops that are made to get products to a CVS store. Products are bought and are then sent to warehouses all across the country which are then broken down and packed again by what the store has ordered which is then delivered to the store. They type of customer order that CVS processes can be classified in two ways. The front store can be classified as made to stock which means that the products are ordered ahead of time and can be restocked on the shelves as often as needed to make the consumers happy. The pharmacy can be classified as an assemble to order because every pharmacy patient has a different prescription with different needs. The category they fall into in the process characteristics matrix is batch flow and assemble to order. The things that influence their process selection is that the stores are not very big and cannot handle the big shipments straight from a manufacturer and they buy in large amounts to cut costs. Also with having stores in almost every street corner it makes it easier for them to have one big warehouse and ship orders to the stores from there. It's a lot easier for them to keep track of their inventory. I don't think that they could mass customize their process selection, unless they build bigger stores to hold the inventory.

CVS PHARMACY

For All The Ways You Care Contest

CVS/pharmacy Announces National Contest for Stories of Extraordinary Caregiving

Last update: 10:57 a.m. EST Jan. 29, 2009

WOONSOCKET, R.I., Jan 29, 2009 /PRNewswire via COMTEX/ -- Second Annual "For All the Ways You Care" Contest Invites Participants to Share and Celebrate Accounts of Caregiving
CVS/pharmacy, the nation's leading retail pharmacy, today announced its second annual "For All the Ways You Care" contest created to celebrate and honor caregivers across America.
CVS/pharmacy invites caregivers and others to submit stories of caring online at http://www.forallthewaysyoucare.com/, a growing community that strives to celebrate the unsung caregivers in our society. The site provides a forum for people to share a story about someone who has touched their life or how they personally have touched another's.
"CVS/pharmacy is committed to caring for women and those they care for. We are pleased to see the For All the Ways You Care community continue to grow as people exchange stories and discuss all aspects of caregiving," said Rob Price, senior vice president, Marketing and Advertising, CVS/pharmacy. "Thousands of stories have been shared on ForAllTheWaysYouCare.com since it launched last year, and we continue to be truly amazed by the selfless devotion demonstrated by so many caregivers."
From the stories submitted from October 5, 2008 through March 1, 2009, CVS/pharmacy and an esteemed panel of judges will select a group of finalists and ultimately a grand prize winner whose stories best represent a nurturing spirit and dedication to others. The finalists will be honored for their inspirational stories at a luncheon and luxury weekend in New York City in May. In appreciation for their commitment to caring, nine finalists will each receive $10,000 and the grand prize winner will receive $25,000 from CVS/pharmacy.
Panelists selecting the winners include Lee Woodruff, author and wife of ABC News Correspondent Bob Woodruff; Dr. Roseanna Means, founder of Women of Means, a program of volunteer doctors who provide free medical care to homeless women and children; Tina Sharkey, BabyCenter chairman and global president; and Rosemary Ellis, Good Housekeeping editor-in-chief. The members of the panel will post their own personal caregiving stories on http://www.forallthewaysyoucare.com/.
"I am privileged to be part of this growing campaign," said Woodruff. "Our family continues to receive an outpouring of love and support, and I am grateful to help give back by honoring special caregivers across America."
To join the community of caring and enter the For All the Ways You Care contest, please visit: http://www.forallthewaysyoucare.com/.
About CVS/pharmacy
CVS/pharmacy, the retail division of CVS Caremark Corporation (CVS:
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CVS 26.79, -0.09, -0.3%) , is America's largest retail pharmacy. The Company operates more than 6,800 CVS/pharmacy and Longs Drugs stores. CVS/pharmacy is committed to improving the lives of those we serve by making innovative and high-quality health and pharmacy services safe, affordable and easy to access, both in its stores and online at CVS.com. General information about CVS/pharmacy and CVS Caremark is available at http://www.cvscaremark.com/.

Inventory Management

CVS Pharmacy uses the Assisted Inventory Management system, often referred to as AIM by their users, to help keep their inventory levels down and have a controlled amount of overstock. This system is designed to help the employees be attentive and organized. While the AIM system allows employees to override orders and order more items for promotional sales, the main goal was to incorporate a system that can auto replenish an item when it is scanned through the checkout counter. This is the key to CVS in maintaining products are in-stock.

Although the AIM system is meant to work, many employees come across problems when working with the program. The system auto replenishes products but it does not consider refunds, which affects the balance on hand. That is a problem a lot of managers face, along with the AIM system does not count the products that are shipped in pre-packed boxes with a display by the manufacturer. This can also affect balance on hand numbers in a negative way.

All in all, the Assisted Inventory Management system is a wonderful tool for CVS pharmacy. It has reduced the amount of man hours it would take to order products for that store. It also helps maintain the correct amount of products on hand every day.