Overview Of Walgreens Management Plan
In this assignment, I will focus on Walgreens, a US pharmacy that retails cosmetics, photo products, and prescribed medicine. The Walgreens website is https://www.walgreens.com. The main aim of the management plan is to elaborate on how the company is structured and how the team contributes to the company’s success. The major problem that Walgreens faces is the competition from other online stores, as well as the inability to open more offline stores that make shopping for consumers easy.
Customer Demographic
Most Walgreens customers have low-income potential. According to Walgreens ‘ consumer demographic, the shoppers are mostly females about 21 years to 52 years old with one or more children and who take care of an older adult. She is the primary caregiver for her family. Walgreens shoppers also include the aged who require prescription medicine.
Supply Chain Design
Design For Quality
Walgreens uses customers’ demands and obtains supplies according to the customers’ needs.
Delivery Speed
Walgreens has a team of reliable suppliers who offer timely delivery depending on customer demand. After the goods reach the warehouse, Walgreens offers a fast delivery between 1-5 days, depending on the product.
Low Cost
Walgreens avails low-cost medication to its customers and in its retail clinics. Minor ailments can be treated at a lower cost than a doctor’s appointment. The clinic accepts payments of medical bills by insurance and boasts of affordable prices for customers without insurance. (Appleby,2013).
All these aspects are important in meeting the consumer’s needs; however, reducing the cost of medical care contributes most to their overall annual returns.
Material Resource Planning (MRP)
Walgreens has a mission “To be America’s most-loved pharmacy-led health, well-being, and beauty company” by focusing on their client’s satisfaction. MRP software helps to match the demands of the customers with the manufacturing of the products. (Seifert, 2003) The company produces its brand of products. The software estimates the raw materials, labor, time, and machines needed to manufacture the product to ensure timely delivery to the customers. Renowned Walgreens suppliers include: Veera Moore Cosmetics( http://www.veramoorecosmetics.com) and Trinidad Construction( www.trinidadllc.com)
Supplier Relationship Management Plan
Walgreens has a team that maintains a strong relationship with suppliers and organizes expenditures for supplies. It also has a procurement team that negotiates on behalf of the company for the best prices to enable a win-win situation between the suppliers and the company in adherence to the terms and conditions stipulated in the Supply negotiations.
Production And Packaging
Walgreens is an independent brand that features a variety of products. These products are produced according to the demand of the customers. A team is responsible for formulating cost-effective packages by taking into consideration the customers’ heart desires.
Transportation
The company offers free shipping to the store. Orders above 35 dollars are also shipped free of charge. Orders below 35 dollars attract a shipping fee. Customers love free shipping as they do not incur additional costs after purchase.
Cost Of Goods Sold
The cost of a product is largely dependent on the cost of the supplier. For Walgreens’s independently produced brands, the cost is determined by the price of raw materials, labor, and manufacturing costs.
CRM (Customer Relationship Management Plan)
CRM plan has had a great impact on the company as it has helped retain its customers (Davis, 2013). The plan helps to know the targeted customers and use social media to get customer feedback. A series of surveys are also conducted to get feedback on the service and customer needs. Walgreens also introduced balanced reward programs and coupons to build customer loyalty.
CSR Plan (Customer Experience Feedback Loop)
This strategy involves a means of communication between the company and the customers about the products The Company has a general feedback section in its website which customers fill in. This provides insight into how the company can improve the services to the customers.
References
Mullis, K. R. (2006). A SWOT Analysis of Walgreens in the Competitive Pharmacy Marketplace. Drug Store News, 28, 35-47.
Appleby, J. (2013). Walgreens becomes 1st retail chain to diagnose, treat chronic conditions. Kaiser Health News, April, 4.
Davis, S. (2013). How Target, Walgreens, and Home Depot have forever changed the private label game.
Seifert, D. (2003). Collaborative planning, forecasting, and replenishment: How to create a supply chain advantage. AMACOM Div American Mgmt Assn.
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