Hey, somebody brought up a business topic on the WAG board. Imagine that. THANKS!
I still like DSCM and I think Walgreens got a good deal here, despite lies to the contrary, on this purveyor of over 3 million Rx's per year. Remember that dscm had a huge portfolio of over 60,000 online items, most not found in the Walgreens retail or online empire, meaning that sound growth opportunities can come forward with broader exposure.
I doubt the possibility of off-shoring of dscm, only because Dawn Lepore invested heavily in distribution infrastructure, similar to amazon.com, I might add, and the fulfillmet part of an online store is a crucial determinant of responsiveness and future success. I think WAG would take a huge step backward by changing this up. JMHO.
The "wild card" here, especially with CHSI being sold off, is whether over time dscm can become the mailorder arm of a central fill strategy at Walgreens. Not the watered down "Power" crap, but a genuine, automated central fill intiative that could radically improve WAG's economics of delivering all non-emergency Rx's. You have seen the automated fill video I posted, and posted some yourself.
I think this central fill mechanism is key to coping with the coming, further-reduced reimbursement landscape that is a certain outcome of the reform of both Medicare and Medicaid.
The jury is still out on whether this is in the cards, or not.
You might be half right yank. Duane Reed was a mess. drugstore.com was a steal. Why? because of very poor management. Dawn Lepore was a disaster for the company and it's shareholders. drugstore.com was not about surviving the dot.com bubble bust. It was and has always been about sheer incompetence of management and oversight.
bythebaybruin just can't seem to grasp the difference between a CEO like Dawn Lepore that helped DSCM survive the dot.com bubble burst when few peer companies could, vs. the antics of Anthony Cuti, CEO of Duane Reade, whose offenses are too numerous to mention and whose legacy likely lives on in the realm of infamy acquired by Walgreens. Duane Reade is actually believed to have placed video cameras in restrooms to film customers and employees going to the bathroom.
The difference is that Walgreens bought DSCM cheap, while they paid out the wazoo for DR.
"Steal of a lifetime..."
Why would another post that also agreed with you earlier today be deleted?
Walgreens made a solid buy by acquiring DSCM with huge upside potential. DSCM is one of the few bright spots in an otherwise tainted acquisition portfolio at Walgreens which sadly also includes home infusion, clinics and the Duane Reade debacle.
yank the dscm team should have been shot and hung from a tree. anyone with a mind and the ability to use it who did any dd on the history of this company. the huge
poor decisions and zero competent oversight destroyed this company and wag got a steal of lifetime. dscm...dawn, kal and the company's top shelf oversight wasted close to 1 billion down the drain.
simply go to edgar online and do a "little" dd which will show in spades how screwed up this company's leadership was.
wag got the deal of a lifetime. dawn lepore took over dscm in october 2004. the share price closed at $3.95 on her first day as ceo. she sells dscm to wag last spring for $3.80. this gal was a
disaster as a ceo. she had zero common sense and was in love with herself. which spelled disaster for dscm shareholders but a bonanza for wag. ironically, dscm had without a doubt the poorest oversight.
which included so many of the so called seattle elite. there is a huge story here of major incomptence which the press has suppressed. i wonder why?
Is DSCM an added cost layer?
I don't think I can actually, fairly answer this question. I'm just not "in" on the integration plan and what is evolving, following the acquisition. I can only state with certainty that at the time of the take over, the answer would be "NO" in that all dscm's costs were an inherent element in the volume that transferred to Walgreens... along with the cost of driving it. How that changes, going forward, will be interesting to track.
Over time, you could well be proven right.
I really am pretty neutral on the DSCM deal, though I do have high regard for some of the DSCM team who others like to villainize but who I think saved the company from extinction when most of their peers disappeared. To be fair, dscm neither became the next amazon, priceline or e-bay, so the accomplishments maybe must be discounted, somewhat.
I am a huge fan of the online business model in the future.
Walgreens spent >$400 million for a customer list of 3 million Rx clients. Proportionately speaking, buying DSCM was a bargain compared to some of the local indy chains WAG has snapped up at even more exhorbitant acquisition costs.
At least Walgreens actually GOT some brick and mortar assets with the DSCM purchase. Most of these local pharmacy chains they bought had most of their stores immediately shuttered.