HDMA - Position Statements - Recommended Utilization of Electronic Product Codes in Healthcare Distribution

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Position Statements

Recommended Utilization of Electronic Product Codes in Healthcare Distribution

Incidents of counterfeit, tampered, or adulterated product entering the healthcare supply chain is a great concern to the safety of our nation. With the development of new electronic product code (EPC) technology creating the ability to track, trace, and monitor individual product units using radio frequency identification (RFID), the healthcare distribution industry has the opportunity to transform the evolving pharmaceutical supply chain.

This technology will serve as a prophylactic barrier to help prevent unsafe product from entering the supply chain by establishing a secure electronic pedigree through which every unit of medication can be authenticated. As an added safety feature for temperature sensitive medications, the RFID chip also can monitor and electronically quarantine any unit that may be damaged by heat exposure as it transitions through the supply chain. In addition, it will streamline distribution processes, revolutionize inventory management, transform critical processes for handling returns and recalls, and automate inventory rotation, resulting in a more efficient distribution system.

HDMA supports the establishment of a consistent, industry-wide initiative collaborating with all members of the healthcare distribution supply chain to drive the adoption, implementation, and utilization of EPC tags. In addition, HDMA fully supports the development of appropriate infrastructures that will uniquely identify and track products and information throughout the healthcare distribution supply chain.

It is recommended that healthcare distributors develop the appropriate infrastructure for tracking and tracing of products utilizing the EPC.