CVS Caremark

PROJECT details

In response to its growth in the USA domestic market, as one of the top 10 US retailers with over 7,500 stores, CVS launched the replacement of its legacy systems to provide solutions supporting the company's future growth for several years.

With the objective of deploying the entire Soft Solutions ibs Suite to support the CVS retail business and increase efficiency of the IS services, a relationship between CVS Caremark and Soft Solutions was established.

Soft Solutions was selected to go forward with this project, for its numerous advantages that differentiates it from other solution providers, in particular it's expertise in solutions dedicated for retail:

  • "The Single Version of the Truth" paradigm. The ibs Suite Master Data Management is the right solution for world-class retailers, handling very complex IS services. ibs Referential and its MDM have been selected to replace different systems and centralize item, supplier and organizational data in a single system and share that information across the business.
  • "The top-down approach". Soft Solutions is a leader in merchandising strategy definition solutions. Once the Master Data Management is deployed, CVS Caremark continued to search for fast ROI and the ability to gradually increase the efficiency of services to the business.
  • "The science at the level of the business". One other advantage for selecting Soft Solutions as the unified Suite solution was the native integration of the Analytics Business Suite. The ability to perform embedded simulations - sales forecast and various optimization processes - was just what was needed to complete the decision.
  • "The Soft Solutions expertise". With more than 25 years of experience in retail solutions and a business-focused approach with experts in retail, Soft Solutions was the most adequate solution to accompany CVS in its growth and evolution.
BUSINESS NEEDS

CVS Caremark business needs:

  • ibs Pricing :
    • Increase processing capabilities
    • Guarantee competitive shopping
    • Rely on forecasting & analysis
    • Ensure adequate elasticity calculations
    • Apply price optimization
    • Execute new price diffusion
    • Implement pricing goal validation

  • ibs AMS
    • Replicate channel models effectively, measure forecast accuracy, benchmark and performance
    • Focus on the link from forecast to customer service levels, inventory policies and operational costs.
    • View demand in multiple time scales and manage the response accordingly
    • Ensure demand-driven forecasts that are timely, reliable and meaningful
    • Understand different accuracy for different stakeholders

  • ibs Referential :
    • Maintain multiple existing merchandising &organizational hierarchies
    • Master acquired company processes and data
    • Consolidate information across the organization
    • Ensure high data scalability & integrity
    • Upstream Data Communication
    • Downstream Information Flow (for non ibs sytems)
    • Guarantee application stability upon high level of data growth in size and complexity

  • ibs DataSync:
    • Improve data quality by centralizing and standardizing item and supplier management, while eliminating erroneous data
    • Reduce cost and increase productivity
    • Synchronize supplier and item data in real time
    • Reduce the necessity for manual data input
    • Enhance and expand item or/and supplier data search criteria
DELIVERED SOLUTIONS
  • ibs Pricing:
    • Manage market share growth while enhancing banner price image, sales and margin with advanced pricing rules
    • Provide a global view of pricing strategies and react to aggressive pricing policies of competitors
    • Improve profitability and ROI set at the category level
    • Calculate and analyze impacts of price change at different hierarchy levels
  • Adapt prices to triggers at the item level such as cost change and tax change during item lifecycle

  • ibs Referential :
    • Cost savings by reducing Data Centers
    • Create a consolidated "Single Version of Truth" to eliminate redundancies, confusion and multiple ownerships
    • Consolidate internal and externally acquired data
    • Implement Unique Security & Audit on data movement
    • Implement a state-of- art Foundation for Hierarchies and Business Frame Work

  • ibs AMS
    • Consolidation of forecast models
    • Aggressive pricing tools & Price Optimization
    • Advanced simulations using price elasticity
    • Increased revenues

  • ibs DataSync
    • Provide access and locate worldwide suppliers and item information, to enhance global offer management
    • Receive and manage files sent directly from suppliers in multiple formats
    • Offer cross reference GDSN standard fields with retailers master data for an optimal internal database synchronization
    • Allow suppliers to manually enter and synchronize data directly on the retailer's portal to reduce costs and improve productivity
    • Guarantee data quality through real-time modifications, centralized information and improved exchanges
Delivered Scope:

Below are the ibs Suite modules installed by CVS caremark:
  • Item MDM (ibs Referential)
  • Location MDM (ibs Referential)
  • Vendor MDM (ibs Referential)
  • Hierarchy MDM (ibs Referential)
  • Data synchronization & Vendor Portal (ibs DataSync)
  • Price management and margin optimization (ibs Pricing & ibs Analytics)
  • Promotions Allocations (ibs Central, ibs Analytics)
  • Reports, workflows and alerts (ibs Workflow, ibs Reporting)

An ambitious project plan was put in place and followed since 2008 with the below milestones. The project delivery plan was adapted multiple times to accommodate the changing needs of CVS.

  • 2009 - Organization and Stores referential Go-Live
  • 2009 - Product information management go-Live
  • 2009 - Data Synchronization solution Go-Live, including supplier portal and GS1 abilities
  • 2010 - Supplier information management Go-Live
  • 2011 - Pricing solutions Go-Live, including Competitor management, and price position optimization
  • 2011 - Regular sales forecast for merchandise strategy optimization
  • 2012 - Promotions allocations optimization
  • 2012 - Regular and Promotional sales forecast for supply chain management
  • 2012 - 2014
    • Supply Chain optimization
    • Promotional policy optimization

Our Vision
Our Solutions
Services & Support
Clients / Partners
HR & Careers
Our Company
Our Vision
Our Solutions
Services & Support
Clients / Partners
HR & Careers
Our Company