RFID Pilot: Cardinal Health Completes

Cardinal Health completes its RFID pilot, which tested RFID tags for end-to-end pharma packaging and distribution business processes. The pilot tested the application of tags and the utilization of item level tracking techniques. Alien Technology, IBM, and Verisign provided hardware, software and implementation services. The application and encoding of the RFID tags approached 100 percent success rates. Reliable read rates were best achieved at the individual case level. The pilot was a fruitful learning experience for the pharma industry. ...

... "The pilot program tested whether ultra-high frequency (UHF) radio frequency identification (RFID) tags could be applied, encoded and read at normal production speeds during packaging and distribution of pharmaceuticals. Verifying the authenticity of medications along each step of the distribution process adds an additional layer of security to lessen the chance of counterfeit pharmaceuticals entering the supply chain. It is also hoped that RFID data could improve efficiencies in the supply chain. Pilot Program Background: In conducting the industry's first end-to-end pilot program, Cardinal Health used new technology to place RFID tags on the labels of brand-name solid-dose prescription drugs, then encoded the electronic product code (EPC) standard data at the unit, case and pallet levels during the packaging process. The products were shipped to a Cardinal Health distribution center in Findlay, Ohio, where the data was read and authenticated as products were handled under typical operating conditions. Normal procedures were enhanced with RFID hardware and software from Alien Technology Corporation and IBM along with project management support from VeriSign.

RFID Labeling and Online Encoding: Data collected from the pilot suggest that it is feasible for RFID tags to be inlaid into existing FDA-approved pharmaceutical label stock, and the tags can be applied and encoded on packaging lines at normal operational speeds. Online encoding yields were 95 percent to 97 percent, and fine tuning of the process is expected to produce yields that approach 100 percent. The RFID tag application and encoding requires minimal adjustments to current labeling and packaging lines.

RFID Read Rates: Unit-level read rate data varied widely depending on the locations and type of reading stations throughout the supply chain. Highly reliable unit-level read rates in excess of 96 percent were found when reading individual cases one at a time and when reading units mixed with other products in tote containers prepared for delivery to a pharmacy. However, as expected, unit-level read rates were not found to be reliable when attempting to read units within a full pallet of product. " ...

Via Cardinal Health: Cardinal Health Releases RFID Pilot Results ...

RFID Drug Authenticity Pilot at Cardinal Health ...

Cardinal Health begins second wave of RFID testing that supports the safety of the drug supply. RFID technology will enable in-process authentication as drugs make their way through the extended supply chain. Cardinal will also look for ways to achieve operational efficiencies from the RFID-enabled supply chain information. The company is expecting to complete this wave of tests by the 4th Quarter of 2006. ...

... "Cardinal Health, Inc., the leading provider of products and services supporting the health-care industry, announced the next phase of the first end-to-end pilot program to test technology that could improve the safety and efficiency of the nation's drug supply. The pilot program will begin to tag medication with labels carrying unique data that can be captured and read to verify its authenticity at each step of the supply chain. Verifying the authenticity of pharmaceuticals along each step of the distribution path adds an additional layer of security to lessen the chance of counterfeit pharmaceuticals entering the supply chain. In addition, the data gathered could improve efficiency as logistics experts at Cardinal Health will be able to analyze the data to identify bottlenecks, read rates and other opportunities to improve efficiency in the supply chain.

In conducting the end-to-end pilot program, Cardinal Health will use new technology to place radio frequency identification (RFID) tags on the labels of brand-name and generic solid-dose prescription drugs at the company's Printed Components facility in Moorestown, N.J. Next, the company's facility in Philadelphia will encode the electronic product code (EPC) standard data at the unit, case and pallet levels during the packaging process. The products will be then shipped to a Cardinal Health distribution center in Findlay, Ohio, where the data will be read and authenticated as products are handled under normal operating conditions. Normal operating procedures will be enhanced with RFID hardware and software from Alien Technology Corporation and IBM along with project management support from VeriSign. From Findlay, the tagged product will be sent to a health-care provider to further test read rates and data flow using the same technology as the distribution center. The product dispensed to patients will not be in the RFID packaging. The company launched the pilot in February and expects to complete the test in the fall." ...

RFID Drug Authenticity Pilot at Cardinal: Via Cardinal Health: Cardinal Health Announces Next Phase Of RFID Pilot ...

Accenture Helps Form RFID Industry Group to Evaluate Technology’s Value in Pharmaceutical Industry

Accenture announced the formation of a group of industry leaders that will work together to evaluate the potential of new radio frequency identification (RFID) technology to enhance pharmaceutical product manufacturing, distribution and retail operations within the United States.

Accenture is serving as program manager for the group of pharmaceutical manufacturers, distributors and retailers, which includes Abbott Laboratories, Barr Pharmaceuticals, Inc., Cardinal Health, CVS Pharmacy, Johnson & Johnson, McKesson, Pfizer, Procter & Gamble, Rite Aid and others. Additionally, the Healthcare Distribution Management Association (HDMA) and National Association of Chain Drug Stores (NACDS) are supporting the group by providing their members with additional information and education-related opportunities for this program.

This innovative project will explore the application of EPC and RFID and technologies to three areas: enhancing the safety and security of the pharmaceutical supply chain; improving the process of pharmaceutical returns management; and increasing the efficiency of distribution operations. The group also plans to help encourage use of the new electronic product code (EPC) digital identification standard throughout the pharmaceutical industry.

“These technologies are becoming widely recognized as a powerful tool,” said Jamie Hintlian, a partner in Accenture’s Health & Life Sciences practice. “The RFID initiative is groundbreaking in that it brings together leading companies across the pharmaceutical industry to not only design and evaluate ways to improve supply chain integrity and accuracy but, also to help consumers receive authentic medicines.”

In studying these issues, the group has worked with the Food and Drug Administration’s Anti-Counterfeiting Task Force on how RFID and EPC technologies can mitigate the risk of counterfeit drugs making it to market.

In addition, the group plans to test how RFID technology can improve: expiration date management, lot and batch tracking, returns management processing, shipping and receiving accuracy, operational integrity, and product security and consumer safety, among other areas.

“The program’s goal is to explore the benefits that full adoption of this emerging technology could bring to consumers as well as companies throughout the pharmaceutical supply chain,” said Lyle Ginsburg, a partner in Accenture’s Products Operating Group. “We also plan to help participating companies accelerate the technology learning curve and to share our findings with the industry.”

About Accenture
Accenture is a global management consulting, technology services and outsourcing company. Committed to delivering innovation, Accenture collaborates with its clients to help them become high-performance businesses and governments. With deep industry and business process expertise, broad global resources and a proven track record, Accenture can mobilize the right people, skills, and technologies to help clients improve their performance. With approximately 86,000 people in 48 countries, the company generated net revenues of US$11.8 billion for the fiscal year ended Aug. 31, 2003. Its home page is www.accenture.com.