The Center for Business Analytics is pleased to recognize CVS Health as an honoree of the 2023 Drexel LeBow Analytics 50 Awards. Read more about how CVS Health used analytics to solve a business challenge.
Submitter
Jason Minchillo, Executive Director Data Science
Company
CVS Health
Industry
Retail
Business Challenge
When the COVID-19 pandemic shifted the world, CVS Health was one of the leading retailers at the center of it — leading in an instrumental role by ensuring that impacted communities had access to critical services and helping people get the care they needed.
As one of America’s leading retail pharmacies, CVS Health faced a continued surge and a need to support customers and communities during a pressing public health challenge. To sustain the level of crisis response that would provide the most essential services to the people who relied on them, CVS Health needed to examine and manage inventory throughout its retail locations — determining product performance and potential demand to ensure the continuity of care for customers, clients and patients.
Analytics Solution
Leveraging SKU analysis, CVS Health was able to predict and optimize product performance throughout its pharmacies, increase forecast accuracy and reduce bias. Through these efforts to better understand product demand, CVS Health reduced excess inventory and optimized its small parcel shipment costs.
Impact
Through its data-driven approach, the company’s air shipments were reduced by 20 percent, resulting in cost savings and efficient inventory control processes.