rfid and the pharma supply chain

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RFID & the Pharma Supply Chain : 

Kamalika Nandi RFID & the Pharma Supply Chain

Value Chain Cost Distribution : 

Value Chain Cost Distribution Source: Imperial College, 2005

The inventor : 

The inventor Charles Walton Born in 1921, Walton grew up in Maryland and New York Master’s degrees in electrical engineering and economics of engineering at the Stevens Institute of Technology, New Jersey Served in the Army Signal Corps where he worked with telecommunications services For ten years worked in IBM’s Research and Development laboratories Started his own company, Proximity Devices, in Sunnyvale, California, with devices made based on Walton’s patents Have been awarded at least 10 patents for RFID-related devices with more than 50 patents to his credit overall

The Development of RFID : 

The Development of RFID From World War II to your corner shop Like the internet, RFID has its roots in the military. During the Second World War, a crude form of this radio wave based technology was used to distinguish enemy planes from friendly aircraft. But like the Internet, RFID has left its military history behind, becoming a cutting-edge technology which is widely used by the private sector and consumers. RFID has the potential to transform the way we live and work – just as the invention of electricity and telecommunications did in the late 19th century. Revived in MIT Was revived in the Auto ID lab of the MIT

RFID – What is it? : 

RFID – What is it? Radio Frequency Identification Device Holds a small amount of unique data – a serial number or other unique attribute of the item The data can be read from a distance – no contact or even line of sight necessary Enables individual items to be individually tracked from manufacture to consumption!

An RFID infrastructure consists of four basic components : 

An RFID infrastructure consists of four basic components 7 Tags Host Computer Antenna Reader Active or passive Usually attached to specific items Receives and transmits the radio frequency signals Communicates with the tag Stores and evaluates obtained data & links to an application e.g. ERP

Passive RFID Tags : 

Passive RFID Tags No power supply "on board“ Transponder reflects/modulates radio signal from reader Shorter read range Lifetime not limited by energy source The field allows the chip/antenna to reflect back an extremely weak signal containing the data The data sent by the reader is modulated and backscattered from the tags at range. .Price : 15 to 30 cents

Active Tags : 

Active Tags Own energy source (e.g. battery) Transponder transmits radio signal Higher read range Cost between $20 and $40 per item Life between 2 – 4 years

RFID Marketplace : 

RFID Marketplace

Slide 11: 

The NI-VISN-100 RFID Tester developed by VI Service Network, a National Instruments Alliance Partner, is a conformance test and measurement solution for radio frequency identification (RFID) devices. It is the first instrument in the world with a built-in RFID protocol stack and real-time communications capability ni.com/info

Comparison with barcode : 

Comparison with barcode

A to z : 

A to z HOSPITAL STORES MANAGEMENT FOOD SAFETY DRUG PEDIGREE RFID-ENABLED COLD CHAIN SYSTEM CAR MANUFACTURING BLOOD BANKS BAGGAGE HANDLING ANESTHETIC DOSAGES ASSET MANAGEMENT ANTI- THEFT SYSTEMS HOTELS AND RESORTS

A to Z : 

A to Z WASTE MANAGEMENT VEHICLE IDENTIFICATION UNDERGROUND SEWERS RETAILING REAL TIME LOCATION TRACKING (RLTS) OFFICE PRINTERS & CARTRIDGES NATIONAL IDENTIFICATION MUSEUMS MOTHER BABY PAIRING MEDICAL SURGERIES

“tag it to logistics, tag it from the net” : 

“tag it to logistics, tag it from the net” IN LOGISTICS

RFID Applications in Logistics : 

RFID Applications in Logistics

Slide 17: 

RFID tags being attached Activation radiation “Read” radiation Cargo list Smart Shelf automatically orders product as being removed from the shelf Tag activated EPC stored 1. Manufacturing 2. Warehouse 1.A. Data transferring 3. Retail store

In procurement, sorting & placing : 

In procurement, sorting & placing

Views on the Value ofRFID : 

Views on the Value ofRFID Labour Cost Savings Accenture estimates, as reported in Lacy (2005), that the savings in receipt is 6.5%, while 100% of the labour in physical inventory count could be eliminated. Inventory Reduction Economist (2003) cites IBM’s estimates to be at 5 to 25%, Shrinkage and Out-of-Stock Reduction First, by having visibility so that the inventory record corresponds closer to actual inventory, replenishment can be more accurate, leading to fewer stock outs. Second, the ability to accurately monitor inventory can reduce the process failures, prevent misplacements, and avoid frauds,1 leading to a direct reduction of inventory shrinkage. IBM’s estimate (Alexander et al. 2002) is that shrinkage can reduce by 2/3 Lee and O¨ zer: Unlocking the Value of RFID 60 Production and Operations Management 16(1), pp. 40–64, © 2007 Production and Operations Management Society

Bad data quality could kill thebenefits of RFID : 

Bad data quality could kill thebenefits of RFID

FIGHT AGAINST DRUG COUNTERFEIT : 

FIGHT AGAINST DRUG COUNTERFEIT The way to be safe is never to be secure Benjamin Franklin

STOP COUNTERFIET : 

STOP COUNTERFIET

Counterfeit Viagra : 

Counterfeit Viagra Counterfeit Viagra was found in the Summer of 2004 in two retail pharmacies in California. Bottles were for 100mg, 30-counts. 23 Cost$270/bottle Cost< $1/bottle

Counterfeit Ponstan : 

Counterfeit Ponstan 24 Ponstan is an anti-inflammatory product. This counterfeit was found in Columbia. The yellow powder consisted of boric acid, floor wax, yellow highway paint. Pressed into tablets and placed in foil packs with labeling. Source: Pharmaceutical Manufacturer Research Association

Drug Counterfeiting : 

Drug Counterfeiting Cumulative US Counterfeiting Losses: Over $1 Billion Average impact to major manufacturer: $50 to $100 Million annually 7% of the World Drug Supply Chain is Counterfeit—WHO Additional losses occur due to negative brand impacts and the costs of recalling suspect product http://www.fda.gov/oc/initiatives/counterfeit/report/interim_report.html#IIA

Potential Solutions : 

Potential Solutions Product based solutions Self-contained positive identification of the genuine product Holographic labels, embed technology in the packaging or product Supply chain level solutions Stop counterfeit product from entering the supply chain Tightly control the chain of custody with documented pedigree Solution is only as effective as the weakest link in the supply chain 26 RFID Moves Forward, Hallie Forcinio, Pharmaceutical Technology/s Packaging Forum editor

Paper Vs E- Solution : 

Paper Vs E- Solution 27 Electronic Solutions: Advanced Bar Coding and RFID Advanced bar coding (i.e 2D) and RFID technologies are potential technologies to enable efficient electronic pedigree RFID is emerging as the preferred solution for package level tracking

Project Jumpstart (2004) : 

Project Jumpstart (2004) A group of premier organizations in the Pharmaceutical Supply Chain have worked together to explore the potential of RFID/EPC The limited test validated the feasibility of RFID in the pharmaceutical supply chain A number of issues and limitations were identified While not a complete success, Jumpstart was a good first step 28

RFID Tag Manufacturing Details : 

RFID Tag Manufacturing Details Steps that were performed to create Jumpstart tags 29 Roll of Tags Showing peel of tag from clear second layer of 2-ply construction Notch used by printer to line up printing of EPC Number on label EPC Number printed on tag Tag was not readable so VOID printed across tag. These have been removed from rolls sent to companies

Pfizer Uses RFID To Stop Viagra Counterfeiters : 

Pfizer Uses RFID To Stop Viagra Counterfeiters On Dec. 15, Pfizer began putting radio frequency identification tags on all Viagra shipments in the United States in an effort to detect counterfeit pills, five million of which were seized by authorities last year. Pfizer will spend approximately $5 million on the project and has tapped two RFID tag companies for help. Tagsys engineered the processes for Pfizer to apply the tags on the bottle as they flow down the production line. Every bottle has the tag integrated in advance under the label. Tagsys supplied approximately 10 readers and 13.56-Mhz RFID tags about .5 by 1-inch that will affix to medicine bottles. Alien Technology, Morgan Hill, Calif., supplied tags for cases and pallets. Pfizer is not the only company in the drug industry working with Tagsys. West Pharmaceutical Services, which makes caps for vials, also tapped the integrator's services about a year ago to put RFID tags into seals By Laurie Sullivan TechWeb News January 10, 2006 04:52 PM

Pharmaceutical Pedigree : 

Pharmaceutical Pedigree , e-Pedigree – The process Electronic record, containing information regarding each transaction resulting in a change of ownership of a prescription drug, from sale by manufacturer, through acquisition and sale by a wholesaler, until final sale to a pharmacy or person furnishing, administering or dispensing the prescription drug 31 Pharmaceutical Manufacturer Distributors Providers 1,500 (Top 30 = 80%) 100 (Top 3 = 85%) 100,000+ 80% 20% Simplified US Pharmaceutical Supply Chain RFID Moves Forward, Hallie Forcinio,Pharmaceutical Technologys , Packaging Forum editor

Pedigree Data Elements : 

Pedigree Data Elements Identify drug, dosage form & strength • Manufacturer • Quantity by Lot number • Corresponding invoice / shipping / transfer document number • Transaction dates • Certification of authentication • Contact information for each wholesaler • Signature / oath that pedigree is accurate & complete • Manufacturer’s unique tracking number when available

An Example of an ROI analysis for introducing RFID programme : 

An Example of an ROI analysis for introducing RFID programme

Characteristics of Indian pharma supply chain : 

Characteristics of Indian pharma supply chain Large number of small players dominating the market Supply Chain not well integrated Distribution system complex and fragmented Based on the two-tier sales tax structure, namely CST and local sales tax

THE GREAT INDIAN SUPPLY CHAIN : 

Around 25 per company. i.e. one per state Around 500,000 across the country Around 60,000 across the country THE GREAT INDIAN SUPPLY CHAIN Express pharma May,2006

In future???? : 

In future???? Emergence of 3PL VAT Consolidation Company driven to industry driven industry

RFID in India! : 

RFID in India! The Delhi-Noida Direct (DND) flyway operates using RFID to help pay tolls Chitale Dairy Farm Bhilawadi, in Sangli district of western Mahrashtra uses RFID tags for buffaloes. Each buffalo is tagged with a card that takes care of the feeding data, breeding data as well as milking record of the animals. The ease of availability of information has enabled better decision-making, therefore improving yields by 15% to 20%. The RFID tags will carry their janampatris, the entire life history of the individual head of cattle and its genetic make as well Wipro Infotech has successfully implemented RFID solution in the Pantaloon's Tarapur warehouse & factory. Airports Authority of India showing interest in RFID for cargo as well as passenger goods management. Infosys, Wipro, TCS use Proximity tags with RFID chips for limited access Mahindra & Mahindra are reportedly deploying RFID in assembly line operations. The Economic Times, August 30, 2005.

The Future : 

The Future "Imagine an Internet of things, where everyday objects, rooms, and machines are connected to one another and to the larger digital world.” - Business 2.0

EMBEDDED TECHNOLOGY! : 

EMBEDDED TECHNOLOGY!

The pioneer : 

The pioneer We view Wal-Mart as the best supply chain operator of all times. Efficiency is a key factor in maintaining Wal-Mart's low-price leadership among retailers. Their margins can be far lower than other retailers' because they have such an efficient supply chain. The company's cost of goods is 5% to 10% less than that of most of its competitors." - Pete Abell, Retail Research Director, AMR Research, Boston. "Besides spot-on execution, one of the key ingredients of Wal-Mart's break away from the pack has been enabling certain core processes with technology. Wal-Mart has been proactive in using the Internet as a ubiquitous communication infrastructure to drive mega-efficiencies." 1 - Mohsen Moazami, Vice-President of Cisco's Internet Business Solutions Group. "People think we got big by putting big stores in small towns. Really, we got big by replacing inventory with information." 2 - Sam Walton, Founder of Wal-Mart.

Walmart : 

Walmart In November 2003, Wal-Mart, the world's largest retailing company , held a meeting with its top 100 suppliers at its Bentonville headquarters. The meeting was held to discuss the course of action for implementing the Radio Frequency Identification (RFID) technology by the company's suppliers. Earlier, in July 2003, Wal-Mart asked its top 100 suppliers to be RFID compliant by January 2005, while the remaining suppliers were given an extension of one year to accomplish the task. Wal-Mart planned to replace bar code technology with RFID technology. The company believed that this replacement would reduce its supply chain management (SCM) costs and enhance supply chain efficiency Wal-Mart decided to slap per-pallet fee on suppliers that don't comply with RFID requirements Starting Feb. 1 2008, the world's largest retailer charged suppliers $2 for each pallet sent without an RFID tag to the company's Sam's Club distribution facility in Desoto, Texas. At the end of October the charge goes lo $2.50 per pallet; at the end of January 2009, it rises to $3. http://www.icmrindia.org/casestudies/catalogue/Operations/Wal-Mart-Supply%20Chain%20Managemt.htm

Any questions??? : 

Any questions???

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