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Radio Frequency Identification

Prevention of irregular distribution activities and enhancement of efficiency

Unlike in the pharmaceutical industries of other nations, there is a growing need for the adoption of the RFID technology in the Korean pharmaceutical industry due to the complexity of its unique distribution mechanism. While in the US the three major drug distributors such as McKesson, AmerisourceBergen and Cardinal Health consist of over 90% of the entire drug distribution to retailers which include local drugstores and hospitals, in Korea these control less than 10% of total sales. Hanmi Pharm.trades 60% of its drugs with local pharmacies, in turn opted to mobilize its 1,000 regional sales staff to take inventory over its individually tagged products every week with their own RFID handheld readers deployed, in order to enhance product visibility and distribution transparency. Such a practice allows drugmaker for production forecast, product expiry date management, efficient goods return&recall process and the detection of abnormal or malicious distribution activities by drug distributors.

Governmental mandate on drug serialization (key driver)

In 2009 the Korean government instituted a new legislation related to medical goods not only for the consumers' safety but also for the supply chain transparency. The Korean Ministry of Health and Welfare mandates the RFID tag or the 128-bar code on medical drugs, which has been put into effect in 2013 for all designated and prescription drugs. The Korean Food and Drug Administration and the Ministry of Strategy and Finance have already formulated a 7% tax cut when adopting the serialized code system such as RFID and 2D bar code scheme. In addition, the Ministry of Knowledge Economy has proposed 'Pharmacy & IT Convergence Development Strategies.'The proposal now plays a substantial role in the impetus of RFID adoption; estimates suggest that 50% of the entire medical products in Korea will be RFID tagged by 2015. In addition, the Ministry of Knowledge Economy has proposed 'Pharmacy & IT Convergence Development Strategies.'The proposal now plays a substantial role in the impetus of RFID adoption; estimates suggest that 50% of the entire medical products in Korea will be RFID tagged by 2015.

2D Matrix VS RFID

Raises the efficiency of stock management by lowering overproduction and stockout rate and improving inventory accuracy at the same time Reduces processing time by 96% as a result of bulk reading manner

Catagory 2D Matrix RFID
Traceability No Yes
Read/Write Add-on device needed All-in-one
Encode Rate 90 ea/min 150 ea/min
Shipment Rate 2 min/a box with 50 items(1-on-1 read) 3 sec/a box with 50 items(bulk read)
Encode Rate 200 ea/2hrs 200 ea/5min

World's largest scale RFID-based drug administration system

Hanmi IT successfully carried out an item-level RFID-based tracking system implementation on Hanmi Pharm's entire production lines, from packaging to picking and shipping, which annually produce more than 60 million product units within 585 different product categories, thereby automating the process from an order's receipt to the shipment of a packed carton to a wholesaler.

KEIDAS : Hanmi IT's flagship product

RFID/Barcode Integrated Solution for the Supply Chain Execution & Management Platform Suite associated with legacy systems enables control over production, in&outbound process, inventory, shipment, etc, which consequently leads to an effective work process and an interactive information exchange.