Generating Operational Efficiencies from Item Level RFID
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  • Originally, was lifestyle drugs: Viagra, Oxycontin. 􀂄􀂄 Now ... 􀂄􀂄 AIDS/HIV therapy, over-the-counter pain medications, antibiotics, insulin, cholesterol drugs, hormone replacement therapy, over-thecounter flu medications, cancer drugs, antiarthritis drugs, cardiac drugs, anti-parasitic drugs, antihistamines ... and more that are undiscovered. 􀂄􀂄 Gone from lifestyle drugs to lifesaving drugs.
  • considerable and costly countermeasures to restore brand image and gain consumer trust again.
  • considerable and costly countermeasures to restore brand image and gain consumer trust again.
  • considerable and costly countermeasures to restore brand image and gain consumer trust again.
  • considerable and costly countermeasures to restore brand image and gain consumer trust again.
  • Supply chain visibility: Ei tarvitse rakentaa sanomaliikenneyhteyksiä vaan tiedonjako voidaan hoitaa PackAgentilla yksinkertaisemmalla tavalla Esim. kysyntätieto, varastotilanne, takaisinkutsut (recall) Combining different… : viivakoodi + RFID Between selected parties: manufacturer + customer
  • Blister packs challenging even if UHF tag placed on transport box with no surface to the blister material
  • Point-of-sale data available in real time to brand owner
  • Clear benefits of using RFID in material handling (inbound, outbound, inventory management, picking etc.

Transcript

  • 1. Generating Operational Efficiencies from Item Level RFID Case Orion Pharma: Item level authentication through the supply chain Kirsi Viskari Manager, Intelligent Solutions New Business Innovations Stora Enso
  • 2. Stora Enso in Brief
    • A world leader
      • 16.9 million tonnes of paper and board
      • 7.7 million m 3 of sawn and processed wood products
    • Four main divisions
      • Stora Enso Publication Paper, Stora Enso Fine Paper, Stora Enso Packaging Boards and Stora Enso Forest Products
    • Sales EUR 13.2 billion
    • Approximately 46 000 employees in more than 40 countries
    • Market capitalisation EUR 9.3 billion (31 Dec 2005)
    • Shares listed on Helsinki, Stockholm and New York stock exchanges
  • 3. Orion Pharma in Brief
    • Turnover 550 M€, personnel 2700
    • Businesses:
      • Proprietary Products
        • Stalevo ® , Comtess ® /Comtan ®
      • Specialty Products
        • broad portfolio of mainly generics, OTC, including CMO
      • Animal Health
      • Fermion (active pharmaceutical ingredients)
    • 300 products marketed in over 100 countries, over 4000 SKUs
    • Own marketing territory covering Finland, Scandinavia, Germany, UK, the Baltic states and eastern EU
    • 10% market share in Finland
    A North European, R&D-intensive, business-driven pharmaceuticals company with strong emphasis on developing innovative treatments for global markets
    • Strategy emphasises profitable growth and balanced management of risks
    • R&D emphasis on discovery and early development, about 17 % of turnover
      • core areas CNS, cardiovascular and hormonal therapies
      • 7 molecules launched from own pipeline since 1980’
    • Partnerships and networking are important in R&D and access to global markets
  • 4. Five Key Business Drivers for Brand Protection Solutions
    • Consumer safety
  • 5.
    • Consumer safety
    • Brand Protection
    Five Key Business Drivers for Brand Protection Solutions
  • 6.
    • Consumer safety
    • Brand Protection
    • Loss of revenues
    Five Key Business Drivers for Brand Protection Solutions Losses through counterfeiting and piracy   Source: www.4ipr.info € 3.8 billion Software € 0.5 billion Wines & Spirits € 8.2 billion Tobacco € 12.6 billion Pharmaceuticals € 7.5 billion Clothing & Footwear Annual Losses Sector
  • 7.
    • Consumer safety
    • Brand Protection
    • Loss of revenues
    • Regulatory compliance
    Five Key Business Drivers for Brand Protection Solutions
  • 8.
    • Consumer safety
    • Brand Protection
    • Loss of revenues
    • Regulatory compliance
    • Overall supply chain efficiency
    Five Key Business Drivers for Brand Protection Solutions
  • 9. PackAgent Solution
    • Product Authentication
    • Tracking history
    • Auto-ID technologies
    • Standard hardware
    • Parent-child management
  • 10. Item level tracking Example Transparent relations handling allows unique item level pedigree stamps to be created and updated automatically when pallet or container is read and identified in the logistics chain. 08:32:21 08:57:32 09:02:32
  • 11. Item level tracking Example Tracking history 08:32:21 Container 153 08:57:32 Pallet 8458AK6 09:02:32 Manufacturer 10:32:12 Wholesaler 1 12:52:09 Warehoouse 57 13:23:54 Retailer 746532 Transparent relations handling allows unique item level pedigree stamps to be created and updated automatically when pallet or container is read and identified in the logistics chain. 12:52:09
  • 12. Versatile and scalable solution
    • Anti-counterfeit measure covering the whole supply chain
      • - vs. holograms, special inks or physical tamper evidence tool
    • Supply chain visibility
      • - Flexible information exchange
      • - Real time data
    • Easy product authentication for point of sale and consumers
    Combining different marking technologies Building the relevant supply chain
  • 13. PackAgent Pilot with Orion Pharma
  • 14.
    • Whole supply chain (pharmaceutical brand owner, converter/printer, distributor/wholesaler, 7 pharmacies)
    • Item level RFID and shipping case level RFID and barcode
    • One prescription drug, Marevan
    • Duration from Nov 2005 to April 2006
    Case: PackAgent Securing Orion Pharma’s Prescription Drug
  • 15. Pilot supply chain overview One Packaging Converter Jaakkoo-Taara, Turku One Pharmaceutical Manufacturer Orion Pharma, Espoo Seven Pharmacies University Pharmacy Helsinki, Turku, Tampere, Tallinn Pansana, Tallinn Ûlejoe, Pärnu Two Wholesalers Oriola, Espoo AS Oriola, Tallinn
  • 16.
    • RFID technology, HF & UHF
    • Product authentication
    • Item-level tracking and identification (pedigree)
    • Automated recall
    • Supply chain collaboration
    • and data sharing
    Pilot Scope Solution Provided by Stora Enso Business partner Bearing Point
  • 17. Complete pedigree on individual Marevan package
  • 18. Recall notification on individual Marevan package at Point of Sale
  • 19. HF at item level
    • All tags endured automated packaging line
    • UPM Raflatac 18 x 36 mm 13,56MHz HF tag performance was excellent in the pilot
    • Wholesale pack (10 items) can be read both at the end of production line and pharmacy inbound at once in few seconds
    • Global standard, cheap readers
    • Ideal for point-of-sale read
    • Less chance for unintentional read event due to close proximity requirement
    • Recommendation to use HF at item level justified
  • 20. UHF on transport box level
    • UHF suitable for transport box or pallet level tracking
      • Clear benefits in logistics with gate reader at warehouse
    • Parent-child relationship management enabled item-level timestamps
    • Relatively fast and easy implementation at both Orion and Oriola with good results and improved processes
    • Separate UHF tests were conducted by Orion and Oriola to test UHF functionality
      • 100% read accuracy with non-blister packs attainable
      • Blister packs challenging even if UHF tag placed on transport box
      • with no surface to the blister material
  • 21. Barcodes on transport box level
    • Linear barcodes used in parallel with UHF tags
      • Contained same box ID
    • Not all parties involved had RFID readers
    • Wireless barcode readers found functional in warehouse picking
  • 22.
    • Positive consumer feedback, no claims or negative feedback
    • Good feedback and development ideas from all participating parties
    • Successful integration with Orion’s SAP based supply chain management system
    • Whole supply chain integration in less than 3 weeks
    • Seamless usage of 3 different Auto-ID technologies in parallel: HF RFID, UHF RFID and barcode
    • Results in general were better than expected and the maturity of technology was on positive side compared to expectations
    Pilot highlights
  • 23.
    • Unit level information management enables accurate and real-time supply chain management
      • real-time POS data
      • lead-time follow-up
      • better forecasting and planning
      • exception management e.g. recalls
      • etc.
    • RFID used in warehouse logistics can alone increase efficiency substantially
    Manufacturer Feedback Orion Pharma
  • 24. Wholesaler Feedback Oriola
    • Usage of new technologies makes it easier and quicker to manage the workload associated with decreasing order sizes and increased transactions
      • Increased effectiveness
    • Network type of solution
      • Decreases the need of costly point-to-point systems integration
      • Also smaller companies can be involved.
  • 25. Retailer Feedback University Pharmacy
    • Change from bar codes to RFID label could be bigger than the change from ordinary price tags to bar codes enabling changes in
      • cashing process,
      • logistics,
      • drug safety
      • and targeted customer services
    Jussi Kalsta, Customer Service Manager, University Pharmacy, Helsinki, Finland
    • Label reading not causing extra work
    • In order to get the most out of the RFID labelling, the label should be included in all boxes, not just boxes from single producer
  • 26. Consumer Feedback
    • 66% had a positive opinion of the pilot, 37% were neutral
      • No one had negative opinion
    • Only 17% of consumers had any questions
      • Most questions were related to whether the package is followed after the POS
    • No one refused to take the tagged package
        • ” This is advanced technology, wow!”
        • ” It is good that companies invest in security”
  • 27.
    • 2 % of tags were dead and were rejected during tag writing process
    • Calibration of readers important
    • Operational environment can create challenges
      • Metal tables, WLAN coverage etc
    • New or changed processes require clear routines
      • IT service routines, thorough training etc
    • RFID hardware development cause incompatibility
      • Delayed or unexpected reader internal software updates
    Lessons Learned
  • 28. What is important for the future ?
    • Integration options and scenarios should be finalised and agreed – identify the best process based on your Business Drivers
    • RFID and IT are just tools – they have to be integrated to the business processes
    • Process Change is what really delivers the benefits