Value Chain Analysis

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Internal Value Chains
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Inbound Logistics- Walgreens creates value through its Strategic Inventory
Management System. This system provides immediate inventory information which
optimizes inventory management, and produces better in-stock conditions and faster
reaction to sales trends.
In-store IBM AS/400 computers combine store scanning with SIMS, allowing our
buyers to track item movement from the time merchandise arrives at the distribution
centers to the time the product is sold at the checkout.

Outbound Logistics- Walgreens upholds a trustworthy reputation through product
safety. Our customers count on us to sell safe reliable products that meet the highest
quality and safety standards. This means we purchase only the highest quality products
from our suppliers. Because we are a retailer and a healthcare provider, we must
maintain our commitment to the integrity of our products and services. Many of our
customers rely on our pharmacists and other healthcare providers for advice and
dependable service.

Procurement- Walgreens plays a major role in healthcare in many communities
across the country as 1 in 3 people that get prescriptions get them from Walgreens.
"Plan sponsor” options is a major way Walgreens is creating value for the customer and
the company. These options include direct contracts, and custom networks.
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