Walgreens Begins Testing RFID/EPC

Drugstore chain joins industry initiative to ensure safety in drug supply chain using radio frequency identification/electronic product code technologies

Drugstore chain joins industry initiative to ensure safety in drug supply chain using radio frequency identification/electronic product code technologies

Deerfield, IL — November 24, 2004 — Drugstore chain Walgreen Co. is participating in programs testing radio frequency identification (RFID) and electronic product code (EPCs) technologies as part of industry-wide efforts to ensure safety in the drug supply chain, the company has announced.

Walgreens is participating with manufacturers and distributors in an industry program called Jumpstart, the goal of which is to drive the implementation of RFID and EPC technology. The pharmaceutical industry is looking to the new technologies to help fight counterfeiting and theft, which cost the industry an estimated $30 billion annually.

As part of one Jumpstart project, Walgreens received prescription products from several manufacturers and a distributor with RFID tags placed on bottles and cases. The project demonstrated it was possible to track and trace bottle-level movement of drug products throughout the supply chain to ensure the products are coming from a legitimate source.

Trent Taylor, chief information officer at Walgreens, said that the recent statement from the U.S. Food and Drug Administration to encourage manufacturer use of RFID and EPC tags would allow the drugstore chain to gain more practical experience using these technologies.

"The potential to electronically track and trace product at the bottle level through the entire drug supply chain offers great promise toward eliminating counterfeit medications," Taylor said. "Although significant steps remain before these systems can be fully implemented, we know our goals can be reached."

Taylor added that Walgreens is hopeful that the FDA announcement will encourage more companies to become involved in these efforts so that technical issues can be resolved more rapidly.

Walgreen Co. is the nation's largest drugstore chain, with fiscal 2004 sales of $37.5 billion. The company operates 4,623 stores in 44 states and Puerto Rico.

Other drugstore companies reported to be participating in Jumpstart include Rite Aid and CVS, while additional participants include such pharmacy manufacturers as Procter & Gamble, Johnson & Johnson, Abbott Labs, Barr Labs and Pfizer, as well as wholesalers Cardinal and McKesson. Consultancy Accenture is leading the project.

Accenture recently reported the results of Jumpstart tests showing improvements in product security, order accuracy and returns efficiency, indicating that EPC/RFID technologies could help pharmaceutical companies meet regulatory and retailer requirements. Read more here.

For more information on trends relating to radio frequency identification, follow this link for an extensive listing of SDCExec.com articles, featuring the latest research findings on the RFID, including adoption, return on investment and barriers to implementation.
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