The Growing Need for Smart Labels in the Pharmaceutical Industry

The global radio frequency identification (RFID) market for healthcare is expanding at a double-digit rate — and by 2022, it’s estimated to be worth $4.9 billion according to Grand View Research. This explosive growth stems back to the value and efficiency RFID labels promise to bring to healthcare organizations and the added level of security and safety it promises to bring to patients.

RFID technology —a broad category encompassing many types of smart labels— has potentially limitless applications for driving accuracy and value for the healthcare industry. As hospitals, labs and entire supply chains adopt RFID technologies, they become smarter. They are able to track and trace every blood sample or pallet of medication. They have real-time visibility into inventory. They’re able to monitor the temperature of heat-sensitive drugs throughout the supply chain. In the end, smart labelling provides another layer of visibility, efficiency and, ultimately, patient safety to the healthcare industry.

RFID technology relies on radio waves to send and receive information between a tag and a reader. At its simplest level, an RFID reader sends a signal out to an RFID tag and the tag sends back an information-carrying signal. Unique information —such as a GS1 Electronic Product Code™ (EPC)— can be programmed into each individual RFID tag, which are then affixed to products, boxes, pallets or even high-value equipment depending on the application.

It’s easiest to explain RFID tags (or labels) by comparing them to barcodes. Similar to barcodes, RFID tags are commonly used to quickly retrieve product- or pallet-level information. But because RFID tags use radio wave technology, they don’t require direct line-of-sight in order to be read — meaning entire pallets or truckloads of products can be read as quickly as 700 products per second. This gives RFID tags a clear advantage when it comes to driving visibility and efficiency at the supply chain level (called smart label tracking).

Beyond distribution and supply chain benefits, many brands are leveraging RFID tags to engage with their customers at a personal level, allowing consumers to access educational content and / or product-specific landing pages by scanning the label.

The benefits

Lets explore two ways RFID labelling can drive value for hospitals, as they represent a great microcosm of the healthcare industry as a whole, with diagnostic testing, movement of samples and pharmaceuticals, medication dispensing and patient care all happening under one roof. And each of the ways smart labelling benefits hospitals could benefit the entire healthcare industry — every healthcare organization from diagnostics labs to primary care offices to the pharmaceutical supply chain could benefit from end-to-end traceability, improved productivity and better inventory management.

Nearly 200,000 patients die in hospitals per year due to medical errors, which could potentially be prevented through more accurate, secure authentication processes. RFID could be the life-saving answer that hospitals are looking for, engineering accuracy into their processes. Smart label technology can be used to track and trace pharmaceuticals and blood samples throughout the hospital to ensure that every patient receives the right diagnosis and the right medication, without fail.

Each RFID tag has a unique identification number, which is assigned to a particular product and input into the hospital’s database — and is far more difficult to duplicate than a barcode. And because some RFID tags can be read as quickly as 700 products per second, accuracy does not come at the price of productivity.

When all medications are RFID tagged, a nurse or doctor can quickly read the tag, verify the authenticity of the product and determine whether it’s being dispensed to the right patient. Beyond the primary goal of preventing patient harm, secure RFID authentication is also an effective way of fighting the widespread counterfeit drug problem.

According to a recent survey, more than three-quarters of hospital staff still rely on inefficient, manual supply chain management and many respondents rated their visibility into inventory as low. And more than half of hospital administrators cited cost management as the key to their organization’s success. Automating inventory tracking with smart labels and smart cabinets not only streamlines in-hospital supply chain management, but it also aligns with many hospital’s administrative goals — saving money.

Here’s how it works. The moment a medication or product is brought into the hospital, it is tagged with an RFID smart label and put into the hospital’s database. Products are then placed in smart cabinets, which sync with the hospital’s inventory management system. When authorized personnel go to retrieve a product, they can immediately locate in which cabinet and on which shelf the product is. The reader will let them know whether the product they took is the oldest available product — which ensures products get used before they expire. And because the smart cabinets keep a real-time inventory count, fewer labour hours are spent manually counting inventory, re-ordering products and managing expired and recalled products.

This small change to inventory management can have huge budget ramifications. After implementing RFID tracking, Adventist Health White Memorial in Los Angeles, California reduced their manual inventory counting time by 67% and saved an estimated $120,000 per year by using products prior to expiration.

Pharmaceutical industry on the edge

The pharmaceutical industry has, by necessity, always been at the edge of label innovation. Labels for pharmaceutical products protect customers and manufacturers from harm and ensure adherence to regulatory compliances. Smart labels allow digitization of supply chains resulting in optimized management of inventory and improved productivity of Pharma companies.

Pharma companies can use smart labels to identify where storage is in excess, where they need to increase their supply, and more accurate numbers to assess sales and demand. By using smart labels in inventory management, a proper balance can be maintained between shortages and surpluses. The inventory process can be enhanced by recognizing and addressing inconsistencies, such as incorrectly placed products.

Smart labels ensure that medications are genuine. Approximately 10 to 35% of prescribed medicines in the developing world are counterfeit, which is a big issue, and smart labels can help overcome it. Logistics providers, wholesalers, pharmacies, clinics, freight forwarders, and even patients can track medicines with smart labels. A smart label can improve brand protection because pharmacists and supply chain managers can pinpoint a missing shipment. They can determine if it has been stolen or tampered with. Manual inventories can take a long time. Most businesses spend weeks managing their inventory and supply chain. However, with smart labels, the overall time spent on inventory management can be reduced by a considerable amount.

The future

The development of industry 4.0 technologies, such as artificial intelligence (AI), machine learning (ML), and the Internet of Things (IoT), will define the future landscape of efficient label content and planning management. Smart labelling technology delivers real-time data and insights, simplifying the management and updating of label information, and enhancing the supply chain’s effectiveness. Additionally, there are discussions indicating that incorporating blockchain technology to provide a platform for tracking and maintaining label information will mitigate tampering and make labels safer and more secure.

The issue of analyzing global information and customizing it to fit local requirements has long been a barrier for label management. Labeling teams may now overcome these difficulties thanks to smart labeling technology by utilising central management systems that automate design drafting and production of labels. This eliminates mistakes, saves time, and guarantees that the appropriate label is applied in each area.

 

Additionally, smart labels provide ecologically friendly solutions since they lessen paper waste by doing away with the requirement for physical labels and lower the supply chain’s carbon footprint by increasing its effectiveness. For example, in Japan, the regulatory authority has officially implemented eLabeling to allow access to up-to-date labeling information. By lowering waste and enhancing safety, this helps not just the environment but also the economy and society.

 

The measures listed below can be taken to prepare and monitor label revisions for drugs and medical equipment:

  • Organize a process for managing label changes: Establish the policies and procedures for managing label changes, including who oversees examining and approving changes, how they are communicated and executed, and how they are documented.
  • Determine stakeholders: Determine the major players in the label modification process, such as the regulatory bodies, internal divisions, suppliers, and clients.
  • Identify the impacted labels: Analyse how label changes may impact label content affecting product safety, labeling precision, and legal compliance.
  • Transmit changes: All parties involved, including internal departments, suppliers, and customers, should be made fully aware of the changes.
  • Implement modifications: Carry out the adjustments in accordance with the established procedure, making sure to keep all parties involved informed of their progress.
  • Monitor modifications: Keep an eye out for any deviations or problems when label changes are made, particularly how they may affect consumer product safety and legal compliance.
  • Review and update the procedure: To guarantee the label change management procedure’s efficiency and effectively, review and update it on a regular basis. Organisations may efficiently plan and monitor label updates for pharmaceuticals and medical devices by following these procedures. This will help them stay in compliance with laws and provide safe and effective goods.
  • Streamlining supply chain management: Smart labels assist with supply chain optimisation, eliminating bottlenecks and delays, by giving real-time data and insights on product conditions and movements.
  • Enhancing visibility and traceability: Smart labels may offer a safe and visible record of a product’s path from manufacture to consumption, facilitating speedy and precise tracking in the case of a recall or contamination.
  • Reducing waste: Smart labels can assist in avoiding waste and lower expenses related to product deterioration and returns by delivering real-time data on product conditions.
  • Real-time information: Smart labels may give customers access to information on products, dosage guidelines, and side effects in real-time, empowering them to make educated decisions and enhancing patient outcomes.

Supply chain management can be enhanced with smart label technology, such as RFID and NFC, which offers real-time information on product location, movement, and condition. This visibility throughout the whole supply chain lowers the possibility of mistakes. By speeding procedures and eliminating the need for human data entry, the adoption of smart labels in healthcare can help lower healthcare provider (HCP) burnout. By ensuring that the appropriate substance is provided to the appropriate patient at the appropriate time, this technology can help increase patient safety.

 

Additionally, smart labels aid the environment by decreasing paper waste and lowering transportation’s carbon footprint through improving supply chain management.

Labels play a critical role in the pharmaceutical industry. Pharma companies, therefore, have all the reasons to adopt the latest advancement in label technology. So, we need to understand what smart labels are and why they are beneficial for Pharma manufacturers and other supply chain stakeholders.

While we’re at the infancy of healthcare and pharmaceutical applications for smart labelling, smart labelling itself is a mature technology. RFID technology is ready today for healthcare organizations to plug into their existing processes to drive productivity, reliability and savings. But the smart labels themselves are a small part of the overall story. A total RFID solution requires the RFID tags, information processing system, readers and software to work in tandem to achieve your desired goal — whether that’s real-time inventory tracking, a more accurate authentication process or any other your organization might have.