RFID pilot takes pharma data out into the supply chain

RFID applications are almost commonplace inside automotive, electronics, and high-tech manufacturing companies—and out into their supply chains. Meanwhile, other sectors continue to evaluate RFID solutions and their benefits.

That's exactly what's going on right now in the global pharmaceutical supply chain. From the point of manufacture to the point of sale, drugs may change hands as many as 10 times. An RFID solution used to track and trace pharmaceuticals prevents product theft and fraud, and avoids replacement costs associated with product recalls and diminished brand value.

"We hold the security of the nation's drug supply as a top priority, and have taken several steps to ensure a safe and secure supply chain," says Renard Jackson, executive VP for Cardinal Health, a Dublin, Ohio-based supplier of products and services for the healthcare industry. "As part of a multi-pronged approach, RFID is a promising technology that adds a layer of security and [builds efficiencies] across the entire supply chain."

Last August, Cardinal launched a pilot program with Armonk, N.Y.-based IBM and other companies—including security specialist VeriSign, and RFID hardware and tag vendor Alien Technology—to determine RFID's feasibility and effectiveness in a real-world setting.

The solution being tested is IBM's RFID system for pharmaceutical track and trace, based on the IBM WebSphere architecture. The solution makes use of RFID software and services to automatically capture and track the movement of drugs through the supply chain. RFID tags are embedded on products at the unit, case, and pallet level to authenticate the product from manufacturer to wholesalers, hospitals, and pharmacies. Each tag contains a unique identifier that may be linked back to descriptive product information such as dosage and strength, lot number, manufacturer, and expiration date.

To enhance manufacturing capabilities, IBM recently launched its WebSphere RFID Information Center based on a recently completed EPCglobal standard called EPCIS—or electronic product code information system. EPCIS offers a standard way to securely communicate data created by sensors and RFID tags, and tie it to existing business information and trading partners.

According to Christian C. Clauss, director of sensor information management, IBM Software Group, the technology is engineered to capture, manage, search, and securely share RFID, sensor, and 2D bar-code data enterprisewide, as well as with external trading partners and government agencies. Use of the platform makes it easier for businesses to deploy and benefit from RFID technology to improve business decision-making capabilities and operations, he says.

"Enabling standards-based data sharing among trading partners offers ROI that hasn't yet been possible," maintains Clauss. "After years of testing and investing in RFID, companies can now begin to see real business benefits from RFID data provided by their trading partners."

Clauss says the WebSphere center is reporting successful deployments by several early-adopter IBM clients, including that of pharmaceutical distributor AmerisourceBergen, Valley Forge, Pa.

"The advantage of using the RFID and EPCIS system is that information regarding the product's journey through the supply chain is stored in a manner that is useful for a number of different applications," says Shay Reid, AmerisourceBergen VP of integrated solutions. "Once RFID tags have been read and the data enters the EPCIS, the system can be queried to build a product pedigree for customers on demand, deliver real-time receiving and shipping information for manufacturers, and more closely track both inventory and product demand."