Thrifty Drug Store Automates with Cardinal Health and ECRS

Thrifty Drug Store is located in the southwestern region of Montana in the historic town of Anaconda. The area has a population of around 9,000 permanent residents, but also attracts a large number of tourists who stop by to enjoy the numerous outdoor activities and the beauty of the Rocky Mountains. Thrifty Drug has served the area since 1945, but more recently transitioned into a larger operation offering 8,000 square feet of gifts, school supplies, toys, bridal registry items, baby items, health and beauty products, DME (Durable Medical Equipment) home health products, OTC drugs and a full pharmacy. ECRS recently had the opportunity to speak with Joan Andreoli about the business and recent implementation of the ECRS retail pharmacy automation system and the supplier integration technology.

ECRS: Tell us about your customer base and how you serve them?

Andreoli: The majority of our customers are middle-age to elderly people who are community residents, but we do generate some business from tourists stopping in for various items on their way through the area. We offer a large variety of items in our front store for the convenience of our customers, including a large home health and personal care department. Home delivery is an important service that we offer to customers who are unable to make it to the store for whatever reason. Our pharmacy accounts for about one fourth of the store and serves many customers who use Medicare and Medicaid.

ECRS: How has the overall competitive landscape changed in your area, and more specifically in the pharmacy market, over the years?

Andreoli: We are located in the downtown section of Anaconda, and I have seen a lot of change in the local business landscape over the years as larger chain stores move into the area. Many of the stores around us have closed, leaving mostly smaller gift and tourist shops. There are definitely fewer small, independent pharmacies open today than in years past. Customers often opt for the convenience of “one-stop shopping” that the larger stores offer. People are busy today, so the less time they can spend doing errands directly affects the retail choices they make.

ECRS: How have these new competitive pressures changed the way you run your business?

Andreoli: We offer certain conveniences that the larger stores don’t provide. Our focus is on true customer service. Thrifty has many in-house charge accounts, a home delivery service and an extensive DME product line. The front store also provides staples that people need as they drop in to pick up prescriptions, or when they don’t feel like hassling with the traffic of the larger stores. We carry a lot of gift items, cards and even a full bridal registry. It is important that we maintain inventory, so we have what people need when they come in and they don’t go elsewhere. It is also important that we increase efficiency so people aren’t waiting in lines or waiting for an employee to help answer questions. The competitive landscape has made us aware that we must focus on new ways to pull people in while maintaining the service people expect from a community based, privately owned store.

ECRS: How did you learn about the ECRS Catapult system and how long has Thrifty had the system in place?

Andreoli: Store owner, Mike Richards, learned about ECRS at the Cardinal Health Retail Business Conference (RBC) in Boston last year (2007). Cardinal Health is the supplier for the majority of our front store inventory, so the partnership with ECRS made sense when we looked into streamlining store operations. The ECRS system was installed in October of 2007, less than 3 months after Mike attended RBC.

ECRS: What were you using before the ECRS system was installed?

Andreoli: We were using regular cash registers, which were used simply to ring in items. Nothing was tracked through the registers and ordering, inventory, etc., were all done manually.

ECRS: What are some features of the ECRS Catapult system that provided the most immediate and noticeable change in your daily store operations?

Andreoli: The most immediate impact was felt through easier and faster customer point-of-sale transactions. This helps keep customers and cashiers happy. The Catapult system also makes it much easier to track sales and item movement. Easier ordering through Catapult allows me to work in other areas of the store where I need to focus attention. I don’t have to worry about items being in stock or wonder when inventory items will be delivered. The reporting features are also great and simple to use. I love the reports. Daily Log reports are pulled every day, and the financial statements help me see which areas are doing well and which areas need more attention.

ECRS: Has the ECRS Catapult system helped manage your customer charge accounts?

Andreoli: I don’t even have to think about charge accounts anymore because Catapult has automated that process. Before I was manually entering information and pulling up accounts daily, and now I just pull up the customer charge account report when I need to check something. It's a very nice feature.

ECRS: Are you using the ECRS self-hosted gift card program?

Andreoli: Yes, we have had much success with the gift card program. We were using paper gift certificates before and there was no way to track anything. With the ECRS gift cards, I know the money is coming back to the store. I don’t have to balance the certificates everyday because the gift card reporting features keep track of everything. I don’t have to give it a second thought.

ECRS: Do you use ECRS to manage your front-end inventory?

Andreoli: I use the ECRS Catapult software for everything except some specialized gift inventory. It has made a tremendous difference in the amount of time I was spending managing inventory before the system was in place. Everything is automated now. Before the ECRS system was installed, I walked the floor every day checking stock levels, and I would order daily. I now pull up Catapult twice a week and I’m done. The system tells me what I need to do and when I need to do it, which totally simplifies the process of keeping the required inventory on the shelf for our customers.

ECRS: Cardinal Health is your primary supplier. Tell us about that relationship and the role Cardinal plays in serving your customers and your business needs.

Andreoli: Cardinal Health is a great company to work with for retail pharmacy businesses who wish to maximize profit from front store inventory. I have used other suppliers in the past and have not had the same results. Cardinal Health helps keep everyday items in stock, they are very easy to work with, and my representative is easily accessible if needed. The auto-shipping of newer products is beneficial for staying current in the competitive pharmacy market.

ECRS: How has the Supplier Integration Server (SIS) solution offered by ECRS and Cardinal Health automated your ordering and receiving process?

Andreoli: SIS has been very effective. With the tight integration between Cardinal Health and ECRS, manual processes are dramatically reduced. I click one button and SIS sends the purchase order to Cardinal Health, and the Catapult purchase order is updated automatically by Cardinal Health with correct costs and shipped quantities. The orders are placed and product arrives reliably. The technology does the work for you.

ECRS: How have ECRS and SIS helped you manage retail prices and margins? How does this affect your profits?

Andreoli: The system's automatic price updates helps tremendously with maintaining accurate margins, which prevents us from sitting on potential revenue. This will help us realize greater profits going forward.

ECRS: Do you feel the ECRS SIS is a beneficial solution for independent retail pharmacies? Is this something you would recommend?

Andreoli: This is a beneficial solution for pharmacies looking to improve their focus on customer service and to create better store efficiencies. The benefits are numerous. Employees are free to focus attention in other needed areas of the store instead of counting inventory, placing orders, and manually receiving and processing incoming shipments. Automatic ordering insures that you aren’t missing a sale because of stock-out scenarios. It saves time and money, which is important for busy independent pharmacies.

ECRS: Have you been satisfied with the level of service received from ECRS?

Andreoli: I have been very happy with the level of customer service received from ECRS. When issues arise, we call the ECRS technical support line and always receive a prompt return call. The ECRS Support team has been very easy to work since we implemented the system and we are very pleased with the relationship.