A Magic Pill?: The Emergence of Radio Frequency Identification (RFID) Technology in the Pharmaceutical Supply Chain

ABSTRACTThe pharmaceutical supply chain is uniquely challenged by a number of problems including medication error, theft, and counterfeiting. In February 2004, the FDA issued rulings to address these problems, which are expected to have far-reaching effects. Looking to supply chain technology for solutions, one ruling requires bar codes by 2006 at unit of use and recommends that radio frequency identification (RFID) technology be fully implemented by 2007. This article examines the potential of RFID technology in the pharmaceutical supply chain, contrasting the capability of this newer technology to that of bar codes. Although RFID offers particular promise in authentication against counterfeits, the technology has potential value in a number of areas. Concerns about the cost and privacy implications of RFID are addressed.