13884 words 56 pages
Costco Pharmacy POM Audit Team 7

Executive Summary Design of Goods and Services- Costco can be seen to be in their maturity stages of their life. Therefore, it is recommended for Costco to expand its Pharmacy department by at least 50%.
Process Design-Costco processes prescriptions and provides the prescribed drugs to customers. For each prescription, pharmacists carefully review the dosage along with other drugs you may be taking in order to prevent any chance of medications interacting with each other. They also ensure you do not receive any medication which could result in an allergic reaction. It is recommended to introduce E-prescribing in the near future as it would reduce the duration for each prescription process.
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The organization has over 142,000 employees worldwide in more than 600 warehouses. From these warehouses they generate almost $100 billion in revenue with about a $1.77 billion in net income, further indication of their volume driven model.
Costco is a wholesale warehouse; they focus on selling majority of their goods for as cheap as possible. The products offered at Costco are usually packaged in bulk to accommodate their targets of mainly small businesses and large families. Added onto that is the fact that Costco tends to focus their products into single/few brands to avoid overlap and any additional marketing costs related to any overlap. These measures to cut down the costs and focus products have made them competitive with similar organizations such as Superstore and other local grocery stores.
Shopping at Costco requires customers to sign up for membership cards, offered at price points of $55 per year or $110 per year. Other than a membership, there are alternatives such as Cash Cards or shopping online. The revenue from member ship services totalled $694 million in 2012.
Narrowing on Costco Pharmacy This POM Audit report will focus on the pharmacies in Costco. During this report beware that it will be refereeing to two Costco Pharmacies; Richmond and Surrey British Columbia. The information of the two is relatively similar. The NAICS code of the industry is 413110. In order


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