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CVS Caremark honored for logistics program
December 15th, 2011
WOONSOCKET, R.I. – CVS Caremark Corp. has been awarded the 2011 Supply Chain Distinction Award North America in the Logistics Best Practice Category.
CVS said Thursday that the awards, presented at the annual Supply Chain Logistics Summit in Dallas, held by media firm WTG Ltd., recognize companies that drive logistics excellence throughout their organization by developing efficient, sustainable and cost-effective strategies.
The pharmacy company said it received this year's award for a multiyear process improvement and technology integration program across its distribution network that slashed the cost of operations and improved productivity and customer service.
Key to the CVS logistics organization's success was a cultural and change management framework dubbed Personal Responsibility in Delivering Excellence (PRIDE), which accompanied the implementation of process and technology improvements over a four-year period, according to the company. That included the integration of a new warehouse management system for inventory and workflow, a labor management system for performance measurement and employee incentives, a route optimization program for managing store delivery schedules and routes, and an inbound freight appointment and visibility system.
The rollout of PRIDE and supporting processes and technologies to 18 distribution centers involving more than 7,000 associates boosted productivity, reduced costs and inbound transit times, and improved on-time store delivery performance, CVS noted.
"Our 7,300 CVS/pharmacy stores serve more than 4 million customers daily, so it is critical that our distribution network operates at best-in-class efficiency to ensure that the products our customers want are delivered to our stores in a timely manner," Ron Link, senior vice president of supply chain and logistics at CVS Caremark, said in a statement. "Receiving the Logistics Best Practice Award is a testament to the outstanding and innovative work accomplished by our logistics team, our suppliers and transportation providers, and our colleagues from around the company."