Read it here:
RFID as an Answer to Pharmaceutical Drug Counterfeiting
Sarah Scalet, a senior editor at CSO (a sister publication to CIO magazine), took the time to analyze how RFID technology might actually be used in the pharmaceutical industry. In other words, she ignores trivial technology battles over transmission standards and read rates in favor of objectivity and skepticism -- hallmarks of top-notch journalism.
Here is a quick summary of the five myths she exposes about RFID along with some of my own editorial commentary.
Myth 1: RFID tags are anti-counterfeiting devices.
Nope, they are inventory control devices. The most effective applications to date have been inside individual companies. One typical review article from Supply Chain Management Review notes "...retail efforts focus on backroom inventory-management practices at the case/pallet tagging level." To date, Wal-Mart has used RFID most successfully for reducing stock-outs.
Myth 2: RFID technology is necessary to track the movement of drugs.
Not true. The key to supply chain is authentication at the point of dispensing, which can be done using older technology such as 2D bar codes. Demand-side problems will limit authentication, a topic I will explore in more depth in an upcoming post.
Myth 3: RFID technology can be used to mark pills, tablets, and elixirs themselves.
Again, not true. At the Pharmaceutical Supply Chain Security conference, I heard an executive from Nanoink describe how they can encrypt individual pills and tablets using nanotechnology. Very cool! Of course, this technology still has the exact same authentication challenges facing every labeling/packaging/tagging solution, including RFID.
Myth 4: RFID technology will let consumers verify that they have purchased legitimate products.
Not even close to reality for many, many years, if ever. Besides, 1 out of 9 U.S. adults has ordered drugs from another country to save money, so at least some consumers do not actually care about validation.
Myth 5: The pharmaceutical industry is this close to widespread adoption.
As I pointed out in January, Senator Dorgan would dearly love for everyone to believe this myth so that he can ram through import legislation. But alas, it's also not really true, despite the fervent hopes and occasional misrepresentations of RFID technology vendors.
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Unfortunately, articles like this one need to be written because there is still so much misinformation being put forth. Last month, I received an email from a leading industry publication with these (verbatim) statements, each of which is inaccurate and/or untrue:
Nope, they are inventory control devices. The most effective applications to date have been inside individual companies. One typical review article from Supply Chain Management Review notes "...retail efforts focus on backroom inventory-management practices at the case/pallet tagging level." To date, Wal-Mart has used RFID most successfully for reducing stock-outs.
Myth 2: RFID technology is necessary to track the movement of drugs.
Not true. The key to supply chain is authentication at the point of dispensing, which can be done using older technology such as 2D bar codes. Demand-side problems will limit authentication, a topic I will explore in more depth in an upcoming post.
Myth 3: RFID technology can be used to mark pills, tablets, and elixirs themselves.
Again, not true. At the Pharmaceutical Supply Chain Security conference, I heard an executive from Nanoink describe how they can encrypt individual pills and tablets using nanotechnology. Very cool! Of course, this technology still has the exact same authentication challenges facing every labeling/packaging/tagging solution, including RFID.
Myth 4: RFID technology will let consumers verify that they have purchased legitimate products.
Not even close to reality for many, many years, if ever. Besides, 1 out of 9 U.S. adults has ordered drugs from another country to save money, so at least some consumers do not actually care about validation.
Myth 5: The pharmaceutical industry is this close to widespread adoption.
As I pointed out in January, Senator Dorgan would dearly love for everyone to believe this myth so that he can ram through import legislation. But alas, it's also not really true, despite the fervent hopes and occasional misrepresentations of RFID technology vendors.
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Unfortunately, articles like this one need to be written because there is still so much misinformation being put forth. Last month, I received an email from a leading industry publication with these (verbatim) statements, each of which is inaccurate and/or untrue:
- “Like other CPG producers, pharmaceutical manufacturers must meet retail or government mandates for RFID tagging at the pallet and case levels.” [Opening paragraph in email]
- “The U.S. Food and Drug Administration is actively promoting the use of RFID to improve the safety and security of the drug supply.” [vendor statement]
- “Fight Phonies: Send Counterfeits and Generics to The Jailhouse With [vendor’s name] RFID” [vendor headline]
P.S. CIO has enlisted the help of the always enlightening Jayne Juvan of Juvan's Health Law Update blog