Contact: Gary Frazier Manager Corporate Communications E3 Corporation 1 (770) 424-0100
America’s No. 1 Pharmacy Joins Program to Synchronize Inventory Decisions with Suppliers
ATLANTA (June 25, 2001) -- CVS, America’s No. 1 pharmacy, has selected an innovative solution from E3 Corp., a world leader in inventory management and Web-based collaborative solutions, to facilitate CVS’ program for online, real-time collaboration on inventory decisions with suppliers. E3 announced the new contract with CVS -- the largest retail provider of prescriptions in the U.S and No. 1 in store count in the pharmacy industry, operating approximately 4,100 stores -- today at the Retail Systems 2001 Conference in Chicago.
CVS has experienced dramatic growth over the last decade and is positioned for continued strong growth. CVS has used E3TRIM®, E3’s premier inventory management solution for distribution centers (DCs), to manage inventory in its distribution centers through this period of significant growth. To drive more profit and efficiencies through inventory management, the company is implementing a Collaborative Planning, Forecasting, and Replenishment (CPFR) program with their suppliers that leverages the existing E3TRIM solution.
"E3 is a proven technology that CVS has used for eight years, and now it makes sense to extend that capability to our suppliers," said Leo Hartnett, VP of Efficient Consumer Response at CVS. "The process came down to wanting to spend time with suppliers talking about what the information means, rather than discussing whose forecast is most accurate. That’s what really excited us about E3. By allowing CVS and our partners to view the same data, the program will reduce errors in the forecasting process and allow us to work off of a single demand forecast. That’s the cornerstone of the program."
Beyond Traditional CPFR
E3 solutions adhere to the CPFR standards established by the Voluntary Interindustry Commerce Standards (VICS) Committee. Through adherence to these standards, the E3 solution will enable CVS to give its suppliers secure, online access to its proprietary data managed within CVS facilities by the E3TRIM system. As a result, the suppliers will have visibility into the same DC-level store demand information and can quickly come to agreement on forecasts, make appropriate inventory decisions at the DC and back that information up to their supply planning systems. E3’s solution goes beyond the traditional nine steps of CPFR, however. Purchase orders can adapt to everyday shipping constraints from pallet-size minimums to weight maximums. Additionally, the system provides the ability for collaborative partners to vary their order frequency, adjust service level goals, and conduct order flow analysis. Furthermore, both parties can review all SKU/locations daily, whereby exceptions to established orders are noted and managed by both parties, immediately driving benefits for every item at every location. In addition, E3Marketplace (TM), E3’s online collaborative community, enables companies to easily and securely access other partners with whom they have collaborative relationships.
CVS is America`s #1 pharmacy dispensing more retail prescriptions in more stores than any other chain. With annual revenues of more than $20 billion, CVS has created innovative approaches to serve the healthcare needs of all of its customers through its more than 4,100 CVS/pharmacy stores; CVS ProCare, its specialty pharmacy business; CVS.com, its online pharmacy; and Pharmacare, its pharmacy benefit management company. General information about CVS is available through the Investor Relations portion of the Company`s website, at http://www.CVS.com.
About E3 Corporation
E3 Corp. helps companies synchronize their inventory decisions with advanced supply chain, inventory management and data mining solutions. The company’s Web-based, collaborative products are used by retailers, e-commerce companies, wholesalers, distributors, and manufacturers. Based in Atlanta, E3 is a proven performer with two decades of profitable growth and more than 800 installations in 20 countries around the world. E3 solutions cross a multitude of industries including: general merchandise, specialty retail, drug, office products, wine and spirits, food, entertainment, auto parts, hardware, and industrial supply. For more information, visit E3’s web site at www.e3.com.
E3® and E3TRIM® are registered trademark and E3Marketplace(TM) is a trademark of E3 Corporation. Product names mentioned herein may be trademarks and/or registered trademarks of their respective companies.
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