Pharmaceutical Market Europe • January 2026 • 30-31

PHARMA SUPPLY CHAINS

Medicine shortages strike again – can radio-frequency identification technology help?

RFID has emerged as a key technology for its rapid, accurate data capture, and track and trace capabilities for manufacturing and supply chain operations

By Stephan Pottel

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Medicine shortages in the UK and Europe made news headlines in recent weeks. A report identified fragile supply chains as one of the causes, with 136 medicines listed in short supply.January 2024 data shows 19 countries in the European Economic Area (EEA) experienced shortages of winter antibiotics, with 11 recording critical shortages. Similar problems are highlighted in a UK report, with materials, manufacturing, quality, packaging and supply chain challenges cited as causes.

A set of recommendations from a leading pharmacy body calls for greater data sharing between manufacturers, wholesalers and healthcare providers to enable better planning and demand forecasting, as well as sharing good practice in the use of technology to help organisations to improve their systems.

Radio-frequency identification (RFID) technology has emerged as a key technology to address many of these issues, for its rapid, accurate data capture, and track and trace capabilities for manufacturing and supply chain operations. These solutions can enable asset visibility through real-time tracking and tracing of works in progress (WIP) and serve as a powerful deterrent against counterfeit drugs by enabling quick contactless identification and real-time data collection.

RFID technology can also help manufacturers by ensuring high product quality and patient safety by providing up to-date information on medicinal inventories to prevent the use of expired medications. And it can help manufacturers meet strict regulatory requirements by providing traceable records of pharmaceutical products.

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The complexity of pharmaceutical tracking and tracing

Ensuring drug safety and effectiveness depends on proper traceability. Yet manufacturers face significant challenges. For example, pharmaceutical manufacturing involves coordinating and controlling many complex processes, making it difficult to accurately track all the variables associated with WIP and inventory levels.

Unfortunately, many traditional manual and semi-automated tracking methods don’t provide the accuracy and level of detail these complex processes require, leading to bottlenecks and driving production costs. For example, manual data entry errors and other inefficient tracking systems all affect companies’ abilities to maintain accurate inventory records, leading to under- or overstocking, and disrupting production schedules.

Since products have limited shelf lives, a big part of pharmaceutical inventory control is expiration date management. Because expired products can’t be sold, failure to track these dates accurately leads to waste and financial losses.

A related challenge manufacturers face involves compliance. Adhering to rigorous standards involves meticulous record-keeping, accurate inventory tracking and complying with good manufacturing practices (GMP).

According to the European Medicines Agency (EMA) (as per the guidelines listed on the EMA’s website), GMP requires medicines:

  • To be of a consistently high quality
  • To be appropriate for their intended use
  • To meet the requirements of the marketing authorisation or clinical trial authorisation.

While enterprise resource planning (ERP) and manufacturing execution systems (MES) can help manufacturers manage and control inventory, these systems still rely on humans to perform tasks like scanning parts with handheld devices, requiring valuable time. What’s needed is a technology that can automatically monitor the status, location and inventory levels of each pharmaceutical product in real time.

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Addressing manufacturing and supply chain challenges with RFID

Addressing these WIP tracking and inventory control issues, RFID technologies unlock real-time product traceability and inventory management, leading to better drug security and regulatory compliance.

These devices use electromagnetic fields to automatically identify and track tags attached to objects. Tags contain electronically stored information that can be read from a distance, using RFID readers that can gather tag information at multiple points along the production line and automatically update the data within the system.

In the pharmaceutical industry, specifically, RFID tags contain unique data that stakeholders in the industry can use to verify the authenticity of medications and track their journey through the supply chain.

The EMA also sets out Good Distribution Practice (GDP) requirements. Compliance with GDP ensures that:

  • Medicines in the supply chain are authorised in accordance with European Union (EU) legislation
  • Medicines in the supply chain are stored in the right conditions at all times, including during transportation
  • Contamination by or of other products is avoided
  • Adequate turnover of stored medicines takes place
  • The right products reach the right destination within a satisfactory time period.

The EMA also requires that distributors have a tracing system in place, to ensure faulty products can be located, as well as an effective recall procedure. GDP also applies to the sourcing, storage and transportation of active pharmaceutical ingredients and other ingredients used in the production of the medicines. The UK has similar GMP and GDP requirements.

With these real-time verification and comprehensive tracking capabilities, RFID systems ensure that only genuine drugs reach consumers, enhancing patient safety and preventing dangerous drug counterfeiting – which has, unfortunately, become a multibillion-dollar problem.

'Companies need a technology that can automatically monitor the status, location and inventory levels of each pharmaceutical product in real time'

Automating data capture

By automating data capture, RFID systems avoid human errors in data entry and manual tracking, minimising the risk of errors that can lead to product recalls or compliance issues. RFID technologies integrate seamlessly with ERP/MES systems, avoiding the data silos and communication gaps that occur when trying to integrate disparate systems. This combination offers real-time visibility into inventory levels and production status, helping manufacturers and supply chains to maintain optimal stock levels.

Inventory management software collects, manages and analyses real-time data from tagged assets, readers and sensors to create meaningful information for stakeholders. Beyond the RFID solutions themselves, it’s important for pharmaceutical manufacturers, wholesalers and healthcare providers to centralise RFID data using these platforms.


Stephan Pottel is Manufacturing Strategy Director EMEA at Zebra Technologies

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