Track & Trace in pharmaceuticals
The pharmaceutical space is growing to depend on RFID based Track & Trace solutions. Major
pharmaceutical brands like Pfizer lead the way. Enhance efficiency in the channel, reduce theft and
counterfeit products, ensure compliance – Track & Trace solutions can do it all.
Pharmaceutical companies are under immense pressure from three key sources.
Competition from generic lower cost products is squeezing prices for European pharmaceuticals.
This comes at a time when other factors such as the Internet are undermining price differentiation
across markets.
Counterfeit drugs account for as much as 10% of medicines globally (1% in the Western
countries) according to the WHO. Pharmaceutical companies face low cost competition. Brands
earn a bad name when copied products adversely affect consumers.
Regulatory compliance is a fundamental requirement in the pharmaceutical industry. One
of the most significant examples in the USA is the California Pedigree. This legislation has been
postponed to 2015, but it could become a huge cost for companies to comply.
We have identified four actions that pharmaceutical companies may consider when planning to
deploy a Track & Trace solution. These are as follows:
- Prioritise the challenges to define clear and specific objectives. This makes it easier to choose
a solution that matches the objective.
- Start small with a specific project so that it can be more readily expanded. Such projects are
manageable, and easier to measure if they achieve the established objectives. Starting small
often means starting with a specific product in one country.
- Ensure buy-in from the channel so that key channel partners see the benefit to their
organisations.
- Choose an experienced vendor with effective technology and stronger service capabilities.
This will ensure the solution can support the pharmaceutical’s business processes more
effectively and meet the objectives on time.
A view of the future
The Electronic Product Code (EPC) standard for the Track & Trace solutions market in Europe
and the USA will continue to grow. Because pharmaceutical companies will need to continuously
optimise their channels and comply with regulatory demands. Differentiation and more efficient
processes are critical for companies to compete. As a result, Track & Trace solutions that enhance
efficiency will become key tools for companies in establishing a competitive advantage.
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