The pharmaceutical industry is not short of challenges — patent cliffs, regulatory scrutiny, and R&D productivity, as well as a complex supply chain. Pharmaceutical products see several changes of hands — from the manufacturers to distributors to dispensers and, finally, the patients — allowing easy entry of counterfeit drugs and drug diversions. According to estimates by the WHO, nearly $40 billion is lost each year to counterfeit products.
Drug shortages, cost-cutting pressures, demand for generics, and increased online buying further fuel the sale of counterfeit drugs. This not only leads to the loss of billions of dollars, but also increases health risks and recalls, tarnishing the brand image of the already struggling pharmaceutical industry. Track and Trace (T&T) is a new solution that can help pharmaceutical companies effectively manage their supply chain and mitigate the risks associated with counterfeit drugs.
In this paper, GEP discusses what the pharmaceutical industry needs to know about track and trace, and how procurement can support its adoption.