RFID medical logistics management system solution

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1. The current problems of logistics in the pharmaceutical industry

The pharmaceutical industry is a high-tech industry. Pharmaceutical manufacturing companies must produce in full accordance with national GMP standards, while pharmaceutical distribution companies must store and distribute in accordance with national GSP. There are many major problems in the entire system. These problems are explained as follows:

1. In the production process, the raw and auxiliary materials are not in place in time, which greatly affects the production efficiency;

2. Due to manual operation, the error rate in the entire storage and distribution process has reached more than 3%, which not only increases logistics costs, but also affects the reputation of the company and causes many difficulties in customer sales;

3. There are some illegal manufacturers that use various opportunities to manufacture counterfeit drugs, but the State Food and Drug Administration (SFDA) has no means to investigate and deal with them in a timely manner, causing the proliferation of counterfeit drugs and seriously affecting the people’s physical and mental health;

4. In order to obtain illegitimate benefits, various sales organizations and their personnel cross-country goods and obtain large sales commissions, which greatly harms the interests of other personnel, and discourages the latter’s enthusiasm for work and disrupts the normal operation of the market. , To accelerate the decline of enterprises.

In order to solve these problems, various pharmaceutical manufacturing companies and distribution companies have tried various methods, but they are still unable to solve these problems. The National Food and Drug Administration (FDA) of the United States has applied radio frequency identification technology to solve these problems. Radio frequency identification technology can achieve real-time monitoring of every link in the production and circulation of drugs, with an error rate of almost zero, effectively controlling the production and sales of counterfeit drugs, and immediately investigate and deal with them if they are found.

  
2. Introduction to RFID


RFID is the abbreviation of Radio Frequency Identification, that is, radio frequency identification, commonly known as electronic tags. For ERP (Enterprise Resource Planning) and SCM (Supply Chain Management) systems, RFID is a revolutionary breakthrough. Its precise management extends its tentacles to every aspect of the business activities of the enterprise, making the management of production, storage, transportation, distribution, retail and other aspects unimaginable in the past convenient. In the past, the material number could not be used to track a single component, but today, the precise management of materials extends its tentacles to every part of every link, whether it is quality control, automated management, and product life cycle management. It is very effective and convenient. For example, the analysis of the defective product rate can locate the source of the defective product at a certain point, and a certain product in the warehouse will not be left alone for too long because of the excessive quantity of the same type of product.

Compared with one-dimensional barcodes and two-dimensional barcodes, the advantages of RFID are:
(1) Use radio waves to obtain information at the left position (up to 5 meters);
(2) It can identify even obstacles within the reach of the radio wave;
(3) Several tags can be identified at one time (when equipped with anti-collision function);
(4) The information in the label can be rewritten;
(5) The memory capacity of the label is large (up to tens of thousands of digits);
(6) Strong anti-pollution and damage ability;
(7) High-level technologies such as encryption can be used to protect information.

In the logistics industry, RFID electronic tags have greatly improved management efficiency and greatly reduced costs. The new world opened up by RFID is not just about using electronic tags to facilitate logistics and retailing. RFID provides a brand new interface for connecting our real world with the imaginary world.

1) RFID drives the retail industry revolution

With the emergence of radio frequency identification technology RFID, the status of existing commodity barcodes has been challenged, and retail supply chain management is facing a new revolution. According to calculations by Kearney International Management Consulting Company (AT Kearney), from the data, the benefits of retailers after adopting RFID come from three aspects: reducing inventory levels by about 5%; reducing in-store and warehouse labor costs by about 7.5% each year ; Improve turnover, reduce shortages, and increase turnover by 700,000 US dollars for every 1 billion US dollars in annual sales.

2) RFID brings animal flow supply chain revolution

Since the storage capacity of RFID tags is more than 2 to the 96th power, the logistics industry discovered for the first time that they can represent all the commodities in the world with a unique code. In the past, barcodes were used. Due to the length limitation, the logistics industry could only define a category code for each type of product. That is to say, a batch of milk, regardless of the shelf life, the code in the mall is the same, and the mall cannot pass the code. Determine the accurate inventory cycle of each product. RFID completely abandoned this restriction, and now all products can enjoy unique identification.

In supply chain management, no matter where RFID is applied, higher technical support can be provided and better management results can be obtained. Some experts believe that in order to improve the efficiency of logistics supply chain management, it is necessary for members of the supply chain to obtain the operating information of other members and various business links in a timely manner, and the lack of information sharing will cause supply chain rupture and inefficiency. . Advanced radio frequency technology information can enhance the degree of automation of these links. This can increase the degree of automation of business operations, greatly reduce the error rate, and improve the transparency and management efficiency of the supply chain.

Efficient supply chain and logistics management system are its core competitiveness. The supply chain and logistics management system created by making full use of modern information technology can not only provide Tasly Pharmaceuticals with a cost advantage, but also deepen its understanding of customer demand information and increase its market response speed, thereby winning it Valuable competitive advantage.

  
3. The specific application value of RFID in the pharmaceutical logistics industry is mainly reflected in the following links


1. Production link. The application of RFID technology in the pharmaceutical manufacturing process can complete automated production line operations, realize the identification and tracking of raw materials, semi-finished products and finished products on the entire production line, reduce manual identification costs and error rates, and improve efficiency and benefits. Especially in the assembly line that adopts JIT (Just-in-Time) production method, raw materials and parts must be delivered to the work station on time. After adopting RFID technology, it is possible to quickly and accurately find out the raw materials and semi-finished products required by the workstation from a wide range of inventory by identifying electronic tags. RFID technology can also help managers send out replenishment information in time according to the production schedule, achieve a balanced and stable production line, and also strengthen quality control and tracking.

2. Storage link. In drug warehouses, the most widely used radio frequency technology is to access goods and inventory inventory, which can be used to automate operations such as inventory and retrieval. In the entire drug warehouse management, combining the receiving plan, picking plan, and shipping plan made by the supply chain planning system with radio frequency identification technology can efficiently complete various business operations, such as designated stacking area, shelf picking and Replenishment etc. Another benefit of RFID technology is to reduce manpower during inventory counting. The design of RFID is to automate the registration of goods. It does not require manual inspection or scanning bar codes during inventory, which is faster and more accurate, and reduces losses.

3. Transport links. Goods and vehicles transported in transit are labeled with RFID tags, and RFID receiving and forwarding devices are installed at some checkpoints of the transportation line. After receiving the RFID tag information, the receiving device uploads the information of the RFID tag to the communication satellite together with the location information of the receiving place, and then transmits it to the communication satellite. The transportation dispatching center is sent to the database.

4. Delivery/distribution link. In the distribution link, the use of radio frequency technology can greatly accelerate the speed of distribution, improve the efficiency and accuracy of the picking and distribution process, and can reduce labor and reduce distribution costs. If all commodities arriving at the central distribution center are affixed with RFID tags, when entering the central distribution center, the pallet passes through a reader to read the contents of the tags on all the boxes on the pallet. The system checks this information with the shipping record to detect possible errors, and then updates the RFID tag to the latest product storage location and status.

5. Retail links. RFID can improve the inventory management of retailers, realize timely replenishment, effectively track transportation and inventory, improve efficiency, and reduce errors. At the same time, smart tags can monitor the expiration date of some time-sensitive commodities: stores can also use the RFID system to automatically scan and charge at the checkout counter to replace manual collection.

 
Fourth, the main purpose of the use of radio frequency identification technology by pharmaceutical companies

1. Reduce the error rate of each link in order to obtain substantial short-term profits;

2. Strengthen market management, strictly prevent drug collocation, consolidate or seek long-term competitive advantage;

3. Strengthen brand management and strictly prevent counterfeit and inferior drugs from harming their brand image.

Judging from international experience, commodity circulation has played an increasingly important role in guiding and promoting production. Regardless of the country’s economic and social system, there can be no modern large-scale production without modern large-scale circulation.

Twenty years ago, it was because of Wal-Mart’s vigorous promotion that barcodes were quickly popularized. On this basis, Wal-Mart has established unparalleled competitiveness in the field of supply chain and logistics management with the help of powerful information technology, and it has risen rapidly at a jaw-dropping speed.

In June 2003, at the Retail Systems Conference &Systems held in Chicago, USA, Wal-Mart announced that it would adopt RFID technology to eventually replace the currently widely used barcode, becoming the first to announce the official adoption of this technology Timetable of business. Wal-Mart’s success lies in its clever combination of cutting-edge technology and high-quality services. More specifically, an efficient supply chain and logistics management system is its core competitiveness. David Glass, the former CEO of Wal-Mart, once said: “Distribution facilities are one of the keys to Wal-Mart’s success. If there is anything we can do better than others, it is the distribution center.” The supply chain and logistics management system created by modern information technology not only gains a cost advantage for Wal-Mart, but also deepens its understanding of customer demand information and improves its market response speed, thus gaining it a valuable competitive advantage. .

In China, the State Food and Drug Administration (SFDA) will cooperate with several advanced and economically powerful pharmaceutical companies to jointly develop and apply radio frequency identification technology. Tasly Pharmaceuticals is one of them.

Tasly Pharmaceuticals also cleverly combined cutting-edge technology and high-quality services to achieve great success. Tasly Pharmaceutical is the first Chinese patent medicine drop pill formulation to be invented and the first to officially pass the US FDA IND as a therapeutic drug; the first Chinese patent medicine product that adopts multi-fingerprint technology for comprehensive quality control; is the first to pass GAP certification; Take the lead in proposing and formulating the GEP of Chinese medicine extraction quality standard, and establishing a scientific Chinese medicine extraction platform.

Now, Tasly Pharmaceuticals will be the first to introduce RFID technology to lead the logistics revolution in the pharmaceutical industry. On this basis, Tasly Pharmaceuticals will obtain huge social and economic benefits:

1. Adhering to the philosophy of Tasly Pharmaceuticals to keep pace with the times, dare to be the first in the world, and constantly adopt the most advanced technology to maintain the core competitiveness of the company;

2. The implementation of this project can obtain strong support from the government and help the government solve technical problems, so that the government can vigorously promote this new technology in the pharmaceutical industry to create favorable conditions;

3. For ERP and SCM systems, they can be in line with the most advanced international level, so that these two systems can truly create huge economic benefits for the enterprise;

4. Due to the adoption of this technology, it is possible to further implement six sigma projects, making it possible for Tasly Pharmaceuticals’ corporate management level to reach the world-class level;

5. Due to the adoption of this technology, each box of medicines will have an ID card in the future, counterfeit and inferior medicines will not be able to circulate in the market, allowing consumers to buy genuine Tasly medicines with confidence;

6. Due to the adoption of this technology, distributors can be effectively managed, strictly preventing cross-linking behavior;

7. Due to the adoption of this technology, the problem of cross-stocking in the sales department is solved, and the sales performance can be accurately evaluated, and it is truly fair, open and fair;

We believe that once Tasly Pharmaceuticals introduces RFID technology, coupled with other supporting measures, it will usher in a new round of rapid development and make a huge contribution to the revitalization of Sinopharm.

 

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