Workbook

October 2009 Course Code: 204240

 Advanced Inventory Management Advanced: Workbook

Table of Contents
Introduction ................................................................................................................ 3

Returns ...................................................................................................................... 4

Transfers.................................................................................................................... 9

Course Completion .................................................................................................. 13

Next Steps ............................................................................................................... 13

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 Advanced Inventory Management Advanced: Workbook

Introduction
In this training course, you will learn about returns and transfers.

Upon completion of this course, you will be able to:

ƒ Perform overstock returns
ƒ Perform Capital returns (outdates, damages and recalls)
ƒ Perform inter-store medication transfers

This training workbook is provided in a self-paced format. You will need to complete
this workbook in a pharmacy where you will have an opportunity to explore and ask
questions. If you need help completing any of the activities or locating any of the
required materials, ask a Pharmacy Team Member for assistance. Answers to each
knowledge check are in the appendix at the end of this workbook.

It will take you approximately 1.5 hours to complete this workbook.

This course is a prerequisite to the Inventory Management Advanced

on-the-job training. You can review your work with your Coach during
that training.

The following icons are used through out the workbook:

This icon indicates a knowledge check.

This icon identifies an activity.

It is important for you to read each section and complete all of the activities and
knowledge checks. Successful completion of this training will provide you with
knowledge that you need to understand the work that occurs in the pharmacy.

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Returns
Overstocked pharmacy items are returned to the CVS Warehouse, and non-saleable
items and recalls are returned to Capital Returns, Inc. (CRI). There are different
procedures for completing each type of return.

CVS Warehouse Returns

Saleable product exceeding Target Inventory Levels (overstocked items) may be
returned to the CVS Warehouse for redistribution.
ƒ Returnable Items: Current CVS Warehouse items including repacks, generics,
fast movers, non-controlled medications, full unopened bottles, Warehouse
syringes, and in-date merchandise with an expiration date greater than 9 months
into the future (for example, if today’s date is January 31 then merchandise with
an October 31 expiration date is not returnable, but merchandise with an
expiration date after November 1 is returnable)
ƒ Non-Returnable Items: Outside Vendor items, controlled medications, partial
used product, chemicals, refrigerator/perishables, recalls, broken bottles, and
open syringes
CVS provides a No Sales Movement (Monthly Rx Warehouse No Activity/Potential
Overstock) Report on the 15th of each month to identify pharmacy products that have
not been dispensed in the last 20 weeks. The items that appear on this report
should be considered for a Warehouse return.

Knowledge Check #1: Warehouse Returns

Identify which of the following items can be returned to the Warehouse.
Place a check mark next to the items which can be returned.

Item —
Unopened bottle of Amoxicillin tablets.
Unopened bottle of Cipro suspension.
Expired Flovent inhaler.
Bottle of Xanax.
Unopened bottle of Tussionex.
Generic Zestril.

NOTE: Saleable items that have been purchased from an Outside Vendor may be
returned to the Outside Vendor. Contact the Outside Vendor’s customer service
department to learn the proper procedures.

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Non-Saleable Returns and Recalls

Non-saleable CVS Warehouse and Outside Vendor prescription items are returned
monthly to Capital Returns, Inc (CRI). These items must be returned according to
the 2 x 2 Returns Window to receive proper credit. The 2 x 2 Returns Window is a
timeframe that determines item eligibility for return. To be eligible, a product must
have an expiration date within a 5-month window. The window includes the 2
previous calendar months, the current month, and the 2 following calendar months.
ƒ Returnable Items: Damaged, recalled, or out-dated (as determined by the 2 x 2
Returns Window) Warehouse and non-Warehouse medications
ƒ Non-returnable items: Non-damaged, in-date products (as determined by the 2 x
2 Returns Window)
ƒ Exceptions: Any product returned with an expiration date that falls outside the 2
x 2 Returns Window is considered an exception. The store’s P&L (profit and
loss) will be charged a fee of $10 for each exception item

Knowledge Check #2: Returning Non-Saleable Items

Determine if the following products are eligible to be returned to CRI for
full credit. Place a check mark next to eligible items.

Item —
Full, unopened bottle of Plavix that will expire at the
end of next month.
Cracked bottle of Aspirin that will expire in 6 months.
Unopened box of syringes from the CVS Warehouse.
Bottle of Wellbutrin that expired one month ago.
Recalled bottle of Wellbutrin XL.

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Return Procedures
CVS Warehouse/overstock returns and Capital returns (non-saleable returns and
recalls) follow two different procedures.

CVS Warehouse returns:

1. Obtain the No Sales Movement (Monthly Rx Warehouse No Activity/Potential
Overstock) report.
2. Identify and pull product for return.
3. Access the Pharmacy Returns/Transfer site on RxNet to view detailed return
procedures.
4. Prepare items for return and complete required paperwork.

Non-saleable returns and recalls:

1. Identify whether the product’s expiration date falls within the 2 x 2 Returns
Window.
2. Identify and pull product for return.
3. Access the Pharmacy Returns/Transfer site on RxNet to view detailed return
procedures.
4. Prepare items for return and complete required paperwork.

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Activity #1: Returns

In this activity, you will complete one overstock return to the CVS
Warehouse and one non-saleable return to CRI. Check off the steps as
you complete them, and record any notes you may have. Complete both
checklists and consider the follow-up questions.

CVS Warehouse/Overstock Returns

— Steps Notes
Obtain the No Sales Movement
(Monthly Rx Warehouse No
Activity/Potential Overstock)
Report

Identify and pull product for

return

Access the Pharmacy

Returns/Transfer site on RxNet
to view detailed Warehouse
returns procedures

Prepare items for return and

complete required paperwork

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Non-Saleable Returns and Recalls

— Steps Notes
Identify whether or not the
product’s expiration date falls
within the 2 x 2 Returns
Window.

Identify and pull product for

return.

Access the Pharmacy

Returns/Transfer site on RxNet
to view detailed non-saleable
returns procedures.

Prepare items for return and

complete required paperwork.

ƒ Why should you return items listed on the No Sales Movement Report?
ƒ Why is it important to observe the 2 x 2 Returns Window?
ƒ What are some of the best practices that should be applied to this activity?

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Transfers
Where allowed by state law, prescription items are often transferred between CVS
stores to better serve our patients and maintain proper inventory levels across all
stores.

Transferable Merchandise
Some items can be transferred between CVS pharmacies, and some cannot.
Those which can be transferred include:
ƒ Warehouse and Outside Vendor items
ƒ Full or partial bottles
ƒ Non-controlled medications
ƒ Insulin and syringes

Those which cannot be transferred include:

ƒ Controlled medications (CII-CV)
ƒ Chemicals or corrosives
ƒ Test strips (use FS transfer)
ƒ Isotretinoin products (Accutane, Amnesteem, Sotret and others)

Activity #2: RxNet

Refer to the Pharmacy Returns/Transfers site on RxNet (under
Inventory Management) to see detailed procedures for Returns and
Transfers.
ƒ Be sure to check the site often for updates, to ensure that you are
following the most current procedures
ƒ What kind of problem could occur if you are not aware of the most
current Transfer procedures?

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Inter-store Medication Transfers

There are two types of inter-store transfer: Transfer Out (transferring items to
another store), and Transfer In (receiving items from another store).

Transfer Out process steps:

1. Collect items to be transferred to the receiving store.
2. Enter items to be transferred into the RF Unit following the procedures for a
Transfer Out. Give special attention to multi-pack or unit of use (u/u) items for
proper entry of quantities.
3. Wrap all glass and liquid containers in plastic bags to prevent spillage and
breakage.
4. Print copies of the Transfer Out Key Rec from the front store controller.
5. After printing the Transfer Out Key Rec, write in the drug name and strength
for all non-Warehouse items. Make a copy for the Receiving Store after the
written additions have been made.
6. Place the Receiving Store’s copy of the Key Rec with the items.
7. Retrieve the completed Rx Transfer Out Detail Report from FMS e-mail. It
will be sent to your store within 48-72 hours.

Transfer In process steps:

1. Enter items that have been transferred into your store using the RF Unit and
following the procedures for a Transfer In. Give special attention to multi-
pack or unit of use (u/u) items for proper entry of quantities.
2. Print copies of the Transfer In Key Rec from the front store controller.
3. Save the Transfer In Key Rec for 2 inventory periods.

Important points to remember:

ƒ Both types of transfer must be processed through the RF Unit to update BOH
quantities
ƒ Scanning the bar code on the package is always the preferred method of
entering items into the RF Unit
ƒ When entering the expiration date, use the MMYYYY format (e.g., 072009)
ƒ When entering a partial quantity, the actual quantity (e.g., number of
tablets/capsules) must be entered
ƒ Once a Key Rec is completed, it is final

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Knowledge Check #3: In the Pharmacy

Review the following scenarios and describe how you would deal with
each situation.

1. Another pharmacy has requested that you transfer insulin and a box of syringes.
Is this transfer allowed?

2. You need to perform a Transfer In, but you are not sure what the most current
Transfer procedures are. Where would you find the current procedures?

3. After receiving a Warehouse order, your tray count doesn’t match the invoice.
You find that the missing trays were delivered to another store on the delivery
route. How should you retrieve the missing trays?

4. You need to increase your BOH of lorazepam. Can you transfer this medication
from a neighboring pharmacy or should you obtain it from the CVS Warehouse?

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Activity #3: Reflection

Think about any experiences you may have had at your store with
Returns, Recalls, and Transfers. Record any notes below.
ƒ Have you had a chance to perform any of these Inventory
Management activities?
ƒ How does your store prepare for Returns?
ƒ Do you Transfer product with a nearby store? Who typically handles
the Transfer?
ƒ Does your store use the Pharmacy Returns and Transfer site? What
is the benefit of that site?
ƒ Do you have any questions or concerns about these procedures?

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Course Completion
Congratulations! You have completed the Inventory Management Advanced
workbook. You should now be able to:
ƒ Perform overstock returns
ƒ Perform Capital returns (outdates, damages and recalls)
ƒ Perform inter-store medication transfers

Next Steps
In order to receive credit for the completion of this workbook, you need to complete
an on-line assessment to test your understanding of what you have learned. Please
contact your Trainer with any questions/concerns.

Once you have completed the assessment, you will complete the Inventory
Management Advanced on-the-job training.

Remember to bring your completed workbook to the Inventory

Management Advanced on-the-job training. Your Coach can review the
activities.

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Appendix: Knowledge Check Answer Key

The following provide answers to the knowledge check questions. The Activities will
be reviewed during the Inventory Management Advanced on-the-job training.

Knowledge Check #1: Warehouse Returns

Unopened bottle of Amoxicillin tabs.
—

Unopened bottle of Cipro suspension.

—

An expired Flovent inhaler.

Bottle of Xanax.

Unopened bottle of Tussionex.

Generic Zestril.
—

Knowledge Check #2: Returning Non-Saleable Items

Full, unopened bottle of Plavix that will expire at the
—
end of next month.
Cracked bottle of Aspirin that will expire in 6 months.

Unopened box of syringes from the CVS Warehouse.

Bottle of Wellbutrin that expired one month ago.

—

Recalled bottle of Wellbutrin XL.

—

Knowledge Check #3: In the Pharmacy

1. Yes, Insulin and syringes are both transferable items.
2. Refer to the Pharmacy Returns/Transfers site on RxNet (under Inventory
Management) for detailed procedures.
3. Call your Pharmacy Supervisor to arrange for a Transfer.
4. Obtain it from the CVS Warehouse. Controlled medication may not be
transferred.

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Payroll Slip for Advanced Inventory Management Self-paced Workbook

In order to be paid properly for Workbook Training, you and your Trainer must
complete the following form. You must then give this form to your Home Store
Manager who will record the appropriate number of hours under the payroll code
indicated.

Employee Name: ___________________________

Employee ID: _______________

Date: ______ / ______ / ______

Class Start Time: _______________

Meal Break Time Out: _______________

(if applicable)

Meal Break Time In: _______________

(if applicable)

Class End Time: _______________

Total Hours to be charged to TR7 (Pharmacy Training Payroll): __________

Employee Signature: _____________________________

Trainer Signature: _____________________________

Home Store Manager – Retain this form with your payroll records for the appropriate
time period.