To: Members of the Board.


In modern businesses, there have been advancements on the utilization of technology to improve service delivery and reduce the cost of production. One of the significant improvements that have been brought up by technology is the automation of processes in organizations. Most of the organizations have utilized the Enterprise Resource Management systems (ERP) to ensure all processes are execute using computer systems. This technique has reduced the paper work and ink work which used to be done traditionally. In this proposal, I will propose the best cost saving technique that can be utilized by CVS to avoid the long receipts that customers are given when they purchase products.

This proposal aims to ensure that the CVS is capable of saving up to 30 million dollars annually. As per the proposal, the major aim is to reduce the expenses used to operate the business via the introduction of cheaper process excursion means. This is through the shifting form long receipts to mobile applications for customer rewards. This will enable the company minimize the amount of ink used in the company printing services as well as reducing the papers used for printing hard copy receipts. The mobile application system is likely to generate the digital receipt which is also signed digitally. As we can see, 6ft receipt is indeed very long to print in the digital error, the firm needs to reduce all these costs incurred to print such a huge piece of paper. This will also enable customers to take an advantage of coupons and savings.

As per the CVS system, not all receipts are equally printed. Some are long and some are short. If you are a non-loyal client, when you buy form any of their locals you are likely to receive a 3-5 inch receipt, if for instance you buy a sachet of gum and Tylenol. As an a As an ExtraCare Reward Member, purchase the same two items and you get nearly 6 feet of receipt, filled with coupons for whatever CVS sells.

To experiment the phenomenon, I went and purchased Chapstick form two chain drugstores and a grocery store. I did a comparison of the two receipts form the purchases which included one with a loyalty membership card and another without. When I used a royalty card at Walgreens and Winn Dixie, my receipt had a few additional inches of information including coupons. Both receipts were similar in length for reward and non-loyal client. However, CVS takes a different tactic. My regular receipt was 8 inches long while my ExtraCare Reward member receipt was 5 feet, I can equate it to the height of a small 10 year old kid. The receipt included a couple of items sold by the CVS firm. It included coupons for Colgate toothpaste, vitamins, shampoo, conditioner, and medicine for children, medicine for adults, heartburn medicine and 4 percent off Neutrogena makeup.  All this for just purchasing Chapstick. This shows how much paper the company wastes.

In 2016, the company started offering digital receipts. This was aimed to have a digital receipt on your mobile application instead of the paper. Unfortunately customers did not manage to access the online system. It forced them to ask for cashiers to look for them as they cash out. The receipts are so costly to produce, an average receipt costs 0.050 dollars. The reduction of the printing costs of these receipts will be beneficial to the company. It realize high profit margins.

I propose that the company shift form the manual system of receipts to the digital system. This is the only way customers can monitor their rewards and coupons remotely. It will also reduce costs involved in generating receipts as well as ink purchase.