supermarket pharmacy of the future is not until the late 1950sand early 1960sthat the first...

Presented by:Christopher J. ThomsenThe ThomsenGroup Inc.

Supermarket Pharmacyof the Future

Supermarket Pharmacyof the Future

Getting an HistoricalPerspective

Supermarket Pharmacy of the Future

The first “self‐service” grocery store was developed by Clarence Saunders(Piggly Wiggly) stores in 1916

The Great Atlantic and Pacific TeaCompany (A&P) was anothersuccessful grocery store chain and bythe 1920s they were becomingcommon


Piggly Wiggly ‐ 1918

The first true US supermarket, however, was opened by, Michael J. Cullen(formerly with the Kroger Grocery store) as King Kullen in 1930

Kroger and Safeway, resistedCullen's idea at first, buteventually built their ownsupermarkets during theGreat Depression andafterwards

Many others follow…


Safeway – early 1950s

http://upload.wikimedia.org/wikipedia/en/7/73/Safeway50s.jpg

It is not until the late 1950s and early 1960s that the first supermarket pharmacies were opened

H.E. Butt, Kroger and Safeway weresome of the earliest pioneers of thepharmacy in a grocery store orsupermarket

The biggest growth came between1998 and 2008 where the numberof supermarket pharmacies in theUnited States grew by more than 60%


Retail Pharmacy – late 1950s

Kroger pioneers the first supermarket that is surrounded on all four sides by a parking lot

Then, by the 1970s the supermarketchain is well underway, from coast tocoast, and it offers everything frommeat to dairy to produce to toiletriesto greeting cards to laundry products

Currently, FMI member companiesoperate more than 19,000 pharmaciesin supermarkets


Kroger – early 1970s


What significant changes took place between the late 1950s and

where we are today?


1964

Today


US Population/65 and Over

US Census

300 million

200 million1964 1984 2009

18 million

82 million


Number of Prescriptions Filled in the US

NACDS, IMS and Schaffer Library

4.0 billion

2.0 billion

150 million1964 1984 2010

1.5

4.1

1973

1.0 billion


Increase in the Number of Prescription Drugs

Record number of New Drugs come to market

Increase in the number of drugs that come off patent (go Generic)

Direct to Patient Advertising

Pressure on Physicians from Patients

Growth ofMail Order Pharmacy

Prescription Drug Plans

1 Physician16%

No Doctors3%

6+ Physicians

11%5

Physicians6%

4 Physicians

15%

3 Physicians

23%

2 Physicians

26%

Johns Hopkins University, Partnership for SolutionsSource: Gallup Serious Chronic Illness Survey 2002.


Number of Different Physicians Seen by PatientsWith Serious Chronic Conditions

Where is Supermarket Pharmacy Today?



The US Market Exceeded 3.8 billion Prescriptions in 2008

Channels TRxs mn% Market

Share% Growth

Retail 3,556 91.9 0.8

Chain 2,075 53.7 2.2

Independents 756 19.6 -3.0

Mail service 240 6.2 -0.1

Food stores 484 12.5 1.4

Non retail channels 311 8.1 2.8

LTC 311 8.1 2.8

Total 3,867 100.0 0.9

MAT Jun 2009

Source: IMS Health, National Prescription Audit, Jun 2009

Today, 15% of all prescriptions dispensed come from Supermarket Pharmacies


US Prescription Growth is a positive 1.1% in YTD June 2009

Source: IMS Health, National Prescription Audit, Jun 2009

3.2

4.5

2.7

1.0 1.1

0

2

4

6

2005 2006 2007 2008 YTD Jun 2009

% G

RO

WTH

TRx


1964

Today

What AboutAutomation and

Technology



AmerisourceBergen Technology Group


Innovation


Kirby Lester


Parata Systems


ScriptPro USA


ABTG and Sintek


Asteres and Parata

order entry adjudication

quality assurance

filling

verification delivery validationstoring and billing

labeling


Automated Workflow


ABCPharmacy

IVR, Telepharmacy, e‐prescribing and the Internet

Layout and Location……Is It Important?



Ref

Fax

24 ft.

12 ft.

CashRegister

Printer

Drop OffPick Up

Dispensing

Order Entry

Drive-Thru

Window

Cas

hR

egis

ter Will

Call

396 sq. ft.

288 sq. ft.

Compact V/H Rectangular


880 sq. ft.

Dispensing C

ounter

Printer

Ref

Shelving

Fax

Drive Up

40 ft.

22 ft.

Shelving

Will Call

Restroom

Shelving

She

lvin

g

Counter

Drop Off and Pick Up

CashRegister

Large/Open Square


Less than 200 sq. ft.

Compact, Highly Automated and Modular

Drop-offPick-up

Filling &Checking

Drive-upWindow

Inventory Shelving

WillCall

Nursing HomeFilling

Nursing HomeAdministration

C/R

Printer

HeatPress

Product Shelving


Drop-off

Drive-upWindow

Will Call Area

Nursing HomeFilling Area

Nursing HomeAdministration

C/RPrinter

(under counter)

Pick-up

Filling Area

Inventory Shelving

OTC/Product Shelving

HeatPress

Inventory Shelving

3’6”

Inventory Shelving

2’6”

End Cap End Cap

3’6”

Checking AreaChecking Area

3’6”

Automated Counting Device

Automated Counting Device

4’0”

3’6”

4’0”

Work Top

5’0”

WheeledStorage Cart

7’0”


A pharmacy technician travels about 1.2 miles per day to fill 150 prescriptions.

Reconfiguration of the pharmacy and the fixtures can reduce travel by more than

31%

Caverly, WayneThe Efficient Pharmacy2009


According to a recent survey of pharmacy customers/patients the location of the pharmacy

(in the store) was of little to no importance.

What is important:

Knowing there is a pharmacyVisibility of the pharmacyAccess to a pharmacistGood customer serviceCompetitive pricing


The ThomsenGroup Inc.2009

Making it All Work, the Supermarket and the

Pharmacy


Long before pharmacies started usingthe term “Health and Wellness”

supermarket pharmacies were already providing a wide range ofhealth related services.


Supermarket Pharmacy of the FutureSupermarket Pharmacists Provide

FMI report "Supermarket Pharmacy Trends 2007

•Health‐focused recipes are offered by 61.4 % (in some stores)

•Heath seminars, 59.1%

•Disease‐management programs, 59.1%

•Health‐focused shelf tags, 45.5%

•Store tours identifying food items that arenutritious or essential to managing certainhealth conditions, 40.9 %

•Walk‐in medical clinics, 40.9%

•Nutrition counseling, 38.6%

•More supermarket pharmacists help immunize consumers from illnesses ranging from the flu to different types of hepatitis


• Define – Your Pharmacy’s Positioning & Strategy within the company

• Create ‐ Pharmacy Tactics and Vehicles for implementation

• Execute ‐ Corporate Structure and Support

– Resource alignment with operations– Marketing plan for pharmacy– Community partnerships/sponsorships

Integrate the Pharmacy into the Supermarket

Develop a Set of Objectives


• Understand the advantages of creating a Health and Wellness destination

• Discuss in‐store programs that support attracting supermarket customers to becoming pharmacy customers

• Describe some of the challenges faced by the supermarket pharmacy

• Identify ways the Store Management and Pharmacy teams can integrate to build loyalty and promote one‐stop shopping

Pharmacy Managers

RetailStore Managers

RetailDistrict Managers

Regional Directorof Operations

PharmacyDistrict Managers

Director ofPharmacy Operations

Pharmacy Managers

RetailStore Managers

RetailDistrict Managers

Regional Directorof Operations

Senior Vice Presidentof Operations

Integration Continuum

Performance reviews, raises, and bonus alignment

Cross training of the associatesDepartment Manager meetings

Store Collaboration on Community Activities


Resource Alignment with Operations


Develop a Marketing Plan for Pharmacy

• Assign a Marketing Manager• Allocate Pharmacy Dollars for Marketing• Define an Advertising plan ‐ radio, TV,in‐store and flyer

• Additional Opportunities

– Vendor partnerships– Billboards & Banners– Local Business activities – Interviews,

Speaking Forums and Community Service

•Healthcare Providers–Clinics, hospitals, health depts., hospices

•Health Associations–AHA, ADA, JDRF, American Cancer Society

•Schools–Pharmacy Colleges, Private and Public Grade Schools

•City and County Government–School nutrition and employee education programs

•Local Employers–Health screenings and seminars

Develop a Community Partnerships/Sponsorships


Cultural Diversity


Contribute Capital to: Organizations that establish or support programs to prepare students for leadership for a world of diverse people and interests.

And, organizations that strive to build communities of respect and tolerance for differences and encourage communities to engage in dialogue about issues of diversity in our society, or the interdependence of national entities and people

Contribute Capital to: fund drives, programs or service support through which nutrition, health

education or preventative medicine will be provided

Nutrition and Wellness


Hunger Relief


Contribute Capital to: people who devote their time, energy and resources to the fight to end hunger

Summary


•Automatically handle calls and refill requests•Seamlessly prompt pick‐up and/or compliance•Eliminate manual labor from the filling process•Store and dispense some or all prescriptions•Automate vial retrieval & labeling•Automatically track and manage prescriptions•Standardize the prescription filling process•Track, manage and/or deliver completed prescriptions


Know What You Want to Achieve

•Daily/weekly prescription volume•Ratio of oral solid prescriptions vs. pre‐packs, other•Prescription volume & revenue growth/decline rates•Hours of operation•Size and availability of staff•Wages and benefits for every staff member•Daily and annual labor costs•Current cost (labor included) to fill a prescription•Size and layout of pharmacy/dispensing area•Background, education and an open mind to new ideas/challenges


Know Your Pharmacy and Personnel

•Cost of equipment (lease/purchase)•Space, power and data line requirements•Upgrade/expandability costs•Costs for software licenses•Remodeling requirements•Costs for interfaces, installation and training•Ongoing maintenance requirements•Costs for service and support•Performance guarantees


Know Your Vendor

“Conduct a thorough financial analyses to make sure that there is a valid return

on your investment (ROI)”


• Technology must enhance efficiency, productivity and patient safety • Technology can improve customer service, provide a unique shopping

experience for the customer and increase Pharmacist / Patient interactions

• Cost and complexity of technology does not always mean the “best”solutions

• Alternative uses of Technology can lead to positive results


Pharmacy Technology – Driving Outcomes & Growing Front End Sales

Task: Bring the pharmacists out from behind tall shelving units and counters.

Result: Increased the sale of walkers from three to four per year, to three or four walkers per month

Increased the sale of OTC products from less that $7,000 a monthto almost $40,000 a month


Driving Outcomes – Example 1


The ThomsenGroup Inc.2005


Task: Double the space for braces, specialty knee braces, walking casts. Reach out to the assisted living centers and the over 55communities

Result: Sales of surgical supplies were up by approximately 30 percent in less than 6 months



Task: Minor modifications to pharmacy layout for efficiency and the addition of IVR and automated counting systems where volumes indicated

Result: Implemented the following:

•In‐aisle Recommendations on OTCs•Disease Management Programs•In‐store Health Education Programs•Community Health Care Services

Supermarket pharmacy must take control of and own “Health and Wellness” so that this

becomes an inseparable part of itsvalue proposition, its service and its identity



What significant changes will take place between now and the next 50 years?

Questions?Questions?

816 853 [email protected]

Group Inc.The Thomsen

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written permission of The ThomsenGroup Inc.

(c) 2006 The ThomsenGroup Inc. All rights reserved.

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