Tony McEntee, CEO of Allcare Pharmacy, said, “Real World Retail has exceeded our expectations in terms of their ability to quickly being able to provide Allcare with intelligent analysis of data that existed locally but was proving difficult to access centrally in a meaningful and interpreted fashion. This has lead to our ability to prioritise actions that have immediately delivered in terms of improved profitability. The payback in the first year is well in excess of 10 times its cost”
View the full Allcare Case Study here.
Customer: Deployment country:
Allcare Pharmacy Republic of Ireland
Industry: rwr Business Partner:
Pharmacy McLernon Computers
Real World Retail Pharmacy and Front of Shop
Allcare Management Services is a company which specialises in supporting Community Pharmacies to deliver excellent personalised care to their community. Allcare supports the pharmacies by providing the back office services to allow the pharmacists focus on their core skill of providing expert medical care, advice and value to their patients and customers. It provides the management for over 65 stores spread all over Ireland.
In 2012 Allcare was tasked with bringing these independently owned pharmacies under one management umbrella. Allcare quickly set about on standardising their transaction systems in the stores with McLernon Computers MPS in the dispensary and for its EPOS, data was centralised with McLernons Head Office System CEDAC. Microsoft’s Dynamics Navision was implemented to integrate with their central warehouse function and provide accounting processes and financial management.
The requirement was for a bespoke but uncomplicated IT business tool to allow all the information data to be collated, for both the business and patient, which would free up management time to be able to evaluate the key information and then act/plan accordingly. Claim Management is a complex process and the leakage in this area needed to be addresses with not only insights but action orientated modules. Nursing Homes is a significant proportion of Allcare’s business and the functionality for the whole system was required for Nursing Homes.
In the front of shop, they needed reporting and control to support category management. Tools to support sales such as Basket Analysis and Product Opportunities were identified at this stage.
After detailed research they turned to Real World Retail (rwr) who provide a decision support system for pharmacies which has a fast rollout compared to the typical consulting engagement. Key Performance Indicators (KPIs) were identified for weekly and monthly reporting and needed to be graphical for ease of use but supported with drilldowns to the underlying data for quick problem solving.
At the time rwr was demonstrated to Allcare it was recognised that rwr exceeded the scope of the project but could be delivered in a matter of weeks at a fraction of the cost of the typical Business Intelligence (BI) consulting engagement.
Some examples of the reports and modules:
- CEO Dashboard to track KPIs and Trends across dispensing and front of shop
- Claims support
- Intelligent store transfers and replenishment
- Supplier reporting to support buyer negotiation
- Open To Buy (OTB) to manage mark downs
- Patient Profiling to improve customer service and patient churn
- Category Management with features such as Store Grading / Space Productivity
The return on investment (ROI) was immediate and the ROI achieved after 12 months is in excess of 10 times. Areas where the tools in rwr have aided significant returns to the bottom line which include;
- Dispensing generic drugs instead of branded drugs
- Patient retention with Overdue Patients module
- Centralised control and billing for Nursing Homes
- Retail control to support category management
- Trending sales insights to ensure top selling items are available in all stores
- Basket analysis to support store layout
- Cashier upselling at point of sale
- Control of leakage at the tills
- This swift return on investment is delivered through:
- The service being delivered over the web and consequently not requiring significant up-front investment in hardware.
- The retail experience of rwr means that the development of the service is very much directed at delivering meaningful information that can drive immediate profit improvement.
All stores are linked to the McLernons’ central server CEDAC, and data is collected from their McLernons system at the front of store and their McLernons MPS dispensing system in each store. Overnight data of the previous day’s transactions is transferred to the rwr server on sales, purchases, inventory, and cashier hours are transferred from their time-management system. The budgets are imported into the system from Excel on a once off basis. Analysis results are augmented with suggestions for immediate action and future consideration. A detailed view and insight into sales trends by both item and location help Allcare’s management and buyers make informed, confident decisions to identify profitable and unprofitable products and determining appropriate stock levels. Store Managers get reports with their KPIs automatically emailed to them on a weekly and monthly basis. Area Managers (AMs) are equipped with iPads and can go through any detail required to resolve problems with Store Managers onsite. There are many more levers employed to extract more margin or increase sales based on the deep retail insight built into the system.
Products and Services Used
rwr-RX – decision support for dispensing (RX), and rwr-FOS – decision support for Front of Shop