Conclusion

Rite Aid has a very direct approach to their systems. It's process strategy clearly defines how it can achieve its competitive priorities. First, the company has a hybrid process structuring thus allowing employee-customer relations without a total customer to employee dependency. The store layout, which is identical amongst chains to create formality and familiarity, optimizes customers' buying potential by locating the pharmacy in the rear of the store. Additionally, resource flexibility is high because most employees are cross-trained, and these employees are able to provide the customer service required at this particular store. The capital intensity allows the inventory to mostly be self-controlled through automated re-ordering systems.

The competitive priorities offered are high quality, timeliness, cost efficiency, and flexibility. Rite Aid prides itself on quality customer service by maintaining good supplier relations, providing proper and positive employee training, and emphasizing the appropriate customer service skills. Timeliness is key to success. Consistent deliveries to minimize out-of-stock items and scheduled promotions to support new and seasonal product launches give a quality and timely customer shopping experience. Bulk orders, generic over-the-counter medicines, efficient ordering, and competitive pricing reduces the all important cost. Flexibilities involved are the varied suppliers used to get products as quickly and least costly, the adopted inventory software and mobile technology, and employee cross-training.

The inventory management process is based on delivery, overstock items, continuous maintenance, ordering, and order fulfillment. These contribute to Rite Aid's perpetual inventory system. Rite Aid uses forward placement distribution as it has 14 regional distribution centers each servicing more than 300 stores nationwide. Weekly deliveries and a 24-hour unload, stock, and organize requirement allow adequate product stock and appearance by each individual store. Rite Aid utilizes an automatic min,max ordering system to ensure no product order is unfulfilled or over-ordered. The Backroom Inventory System is a compliment to the the perpetual inventory system because any overstock item is scanned and included in overall stock and placed in the backroom to await stock replenishment. Lastly, constant evaluation, maintenance, and reports of stock and customer service allow for continuous improvement of store function and reputation.