CENTER FOR HEALTHCARE SUPPLY CHAIN RESEARCH RELEASES NEW BLUEPRINT ON DATA SHARING & DATA MANAGEMENT
IN THE HEALTHCARE SUPPLY CHAIN

Arlington, VA – April 2, 2008 – The Center for Healthcare Supply Chain Research, HDMA’s knowledge partner, is pleased to announce the release of Rules of Engagement: Phase II Ÿ  The Blueprint for Data Management & Data Sharing. This ground-breaking research presents a future vision for tracking and tracing prescription medicines from the beginning to the end of the healthcare supply chain, and outlines the technologies and steps that can enable companies to share and manage item-level product data.

The Blueprint, developed by Forrester Research, Inc., recommends a phased approach to data management and data sharing between trading partners.

• Level 1: Companies that adopt the Blueprint can share data point-to-point, working to achieve compliance with current and emerging pedigree requirements while building a foundation to extend data sharing capabilities in the future.
  
• Level 2: Companies that move to this level can share product shipment and location data on-demand, using analytics software to further enhance supply chain efficiency.
  
• Level 3: Companies can use a global registry to share shipment, location and order pattern data. At this level, companies can have a far broader picture of supply chain activity, and trading partners can work together to enhance monitoring of potentially suspicious events that may be an early warning sign of counterfeiting, diversion, theft or other criminal activities. All three levels of deployment are based third-party standards.

“Healthcare distributors, in concert with manufacturers and pharmacies share a responsibility to continuously monitor, protect and enhance the security of the healthcare supply chain, and we take this responsibility very seriously. Sharing and managing item-level data from the beginning to the end of the supply chain is a key component of ongoing efforts to deploy effective track-and-trace technologies in healthcare,” said John M. Gray, President of the Center for Healthcare Supply Chain Research. “This visionary new research presents an approach for companies to increase visibility into the supply chain using interoperable, long-term systems and technologies. In following the Blueprint, companies can build a foundation to increase business intelligence, streamline efficiencies and maximize value.”

The strategic path forward, described in the Blueprint, takes into account the variability of technology systems across the supply chain and is designed to accommodate companies with advanced IT capabilities, as well as those that lack the capital for major technology investments. Each level is based on incremental, ongoing investments, and can be customized to meet individual company needs.

Rules of Engagement: Phase II Ÿ  The Blueprint for Data Management & Data Sharing also describes long-term efficiencies and other business process improvements that may result from the implementation of the Blueprint. In following a common path forward using interoperable, open systems, research indicates that the costs of deployment may decrease and that greater numbers of supply chain partners can participate in the effort to manage and share item-level track-and-trace data. With increased data sharing across the supply chain, companies may be able to enhance their trading partner relationships and work more effectively to pinpoint and correct process inefficiencies and achieve potentially significant operational gains.

“In order for track-and-trace technologies to be implemented in a consistent and meaningful way, supply chain partners need to understand the value of data management and data sharing, and have a roadmap for implementing new business processes in the short- and long-term,” said Karen Ribler, Executive Vice President and COO of the Center for Healthcare Supply Chain Research.  “Moving forward, the Center will explore the economics of implementing the Blueprint, including the costs and the benefits, in Phase III of the Data Management and Data Sharing research initiative, which is scheduled to be developed in the second half of this year, and released in 2009.”

About HDMA
The Healthcare Distribution Management Association (HDMA) is the national association representing primary, full-service healthcare distributors. Each day, the member companies of HDMA are responsible for ensuring that more than 13 million prescription medicines and healthcare products are safely delivered to 144,000 pharmacies, hospitals, nursing homes, physician offices, clinics, government and other providers in all 50 states. This essential public health function is provided with tremendous efficiency, saving the nation’s healthcare system nearly $34 billion each year. HDMA and its members are the vital link in the healthcare system, working daily to provide value, remove costs and develop innovative solutions to deliver care safely and effectively.