The Impact of RFID on Pharmaceutical Supply Chains: India, China and Europe Compared

Abstract

This paper analyzes the impact of Radio Frequency Identification (RIFD) on pharmaceutical supply chains in Asia and Europe, focusing particularly on India, China, France and the UK. As the global pharmaceutical industry is rapidly expanding due to the entry of generic drugs coupled with the prevalence of business process outsourcing activities among companies there is a heightened risk of counterfeit drugs becoming more easily available in the market place. The application of RFID, both as a security measure and as a device for optimizing supply chain efficiency, will bring about a significant change in the functioning of the industry's distribution network. The present paper discusses several applications of RFID in regard to both the Asian and European pharmaceutical supply chains and points to its potential use as a Business Intelligence (BI) tool. RFID, used as a modern BI tool, provides several advantages to the enterprise, among the most prominent of which is the transformation of raw RFID data into vital business information. Through this mechanism a company can be better positioned to efficiently analyze customer needs and buyer behavior, as well as forecast sales and improve potential profit margins.