As the second largest store chain of its kind, it's a wonder how they keep all their inventory up to date and in stock. Are the Corporate offices truly living up to CVS's namesake, "Customer, Value and Service"?
CVS seems to have gone above and beyond simply 'counting items.' Bringing forth new technology and partnerships with successful Logistics and Construction firms WITRON and Stellar Group, CVS has several large distribution centers throughout the United States. Utilizing highly efficient and cost effective systems such as, Assisted Inventory Management (AIM) allows CVS to satisfy customers in a timely manner, while lowering cost and maximizing profit.
AIM is a perpetual inventory program that allows store managers to track suggested orders and any overriding orders from the manager to optimize their replenishment algorithms. AIM will even account for and adjust for seasonal variations of regular merchandise orders. As products sell through, AIM automatically reorders, the orders are sent to a centralized computer then forwarded to the appropriate CVS distribution center. The distribution centers keep track of inventory levels with E3 Trim technology; an inventory forecasting, planning and replenishment system.
This system allows for a smooth supply chain relationship as things are automated and easily accessible. AIM helps CVS optimize it's store-level inventory while decreasing it's out-of-stock percentages. Leftover stock has also seen a decline, specifically during promotional orders. Now instead of having to store an overstock of notebooks after 'back to school' promotions, CVS has just the right amount of items for its customers while allowing space for other inventory in demand. AIM seems to bring the right balance to inventory management as has been seen in CVS's financial reports. During the first few years AIM was rolled out in CVS stores it reduced inventory cost significantly and helped eliminate out-of-stocks in 3,800 CVS pharmacy departments.
What also adds to CVS in store inventory success are the 'loyalty cards' given to customers and swiped at every purchase to track the merchandise being sold. This allows CVS to truly understand what items are selling and at what times allowing them to better forecast the inventory they should have on hand and increase customer satisfaction.
CVS also uses a variety of performance analyses in its data warehouses. They can perform simulations of what would happen if they increased or decreased the price on a particular item, changed advertising presentations, etc.
CVS is constantly thinking 'outside the box' and truly understands how technology is paving the way for a better future in inventory management. They are not afraid to lead the pack and take pride in living up to their namesake. They know what works and are implementing these strategies to improve the organization and take care of their customers.
CVS seems to have gone above and beyond simply 'counting items.' Bringing forth new technology and partnerships with successful Logistics and Construction firms WITRON and Stellar Group, CVS has several large distribution centers throughout the United States. Utilizing highly efficient and cost effective systems such as, Assisted Inventory Management (AIM) allows CVS to satisfy customers in a timely manner, while lowering cost and maximizing profit.
AIM is a perpetual inventory program that allows store managers to track suggested orders and any overriding orders from the manager to optimize their replenishment algorithms. AIM will even account for and adjust for seasonal variations of regular merchandise orders. As products sell through, AIM automatically reorders, the orders are sent to a centralized computer then forwarded to the appropriate CVS distribution center. The distribution centers keep track of inventory levels with E3 Trim technology; an inventory forecasting, planning and replenishment system.
This system allows for a smooth supply chain relationship as things are automated and easily accessible. AIM helps CVS optimize it's store-level inventory while decreasing it's out-of-stock percentages. Leftover stock has also seen a decline, specifically during promotional orders. Now instead of having to store an overstock of notebooks after 'back to school' promotions, CVS has just the right amount of items for its customers while allowing space for other inventory in demand. AIM seems to bring the right balance to inventory management as has been seen in CVS's financial reports. During the first few years AIM was rolled out in CVS stores it reduced inventory cost significantly and helped eliminate out-of-stocks in 3,800 CVS pharmacy departments.
What also adds to CVS in store inventory success are the 'loyalty cards' given to customers and swiped at every purchase to track the merchandise being sold. This allows CVS to truly understand what items are selling and at what times allowing them to better forecast the inventory they should have on hand and increase customer satisfaction.
CVS also uses a variety of performance analyses in its data warehouses. They can perform simulations of what would happen if they increased or decreased the price on a particular item, changed advertising presentations, etc.
CVS is constantly thinking 'outside the box' and truly understands how technology is paving the way for a better future in inventory management. They are not afraid to lead the pack and take pride in living up to their namesake. They know what works and are implementing these strategies to improve the organization and take care of their customers.
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