Five Business Benefits of Product Track and Trace for Indian Pharmaceutical Companies
Digital disruption has completely altered the way several industries function. One only needs to look at the food and beverage, logistics, or transportation industries to see how digital solutions have made them more accessible and profitable. All of these sectors have benefited from track-and-trace solutions that help them have complete visibility of their product, from its origin to the point where it is handed over to the final customer. The pharmaceutical industry is one that is in desperate need of this technology, not only to boost business revenue but also to ensure the sanctity of a product that is crucial to life. According to IBEF, the pharmaceutical sector in India was valued at US$ 33 billion in 2017. India contributes to over 50 percent of the global demand for various vaccines and 20 percent of global exports of generic medicines in terms of volume, making it the largest provider of generic medicines globally.
All of this gives you a basic idea of the kind of supply and distribution chain that the Indian pharma sector is reliant on. The implementation of track-and-trace systems for Indian pharmaceutical companies can help them optimize this network, as well as branch out even further to create new markets and profit. Let’s take a look at some of the broad benefits that pharma companies can reap from track-and-trace systems.
The biggest benefit of such a system would be for the customer, which of course, directly translates to benefits for the industry. With the right technology in place, customers can verify the origins and distribution route of the medicine that they are using. This gives the customer greater confidence about the product and guarantees authenticity.
Given the huge dependence on shipping for pharma export, the industry faces significant risk from thieves and smugglers. Freight Watch International has released statistics suggesting that drugs account for approximately 15% of the estimated US $8 billion to the US $12 billion of annual cargo theft, which amounts to well over US $1 billion annually. A serialization tracking system can help reduce that risk. By scanning the unique QR code of a particular product, one can go back through the supply chain to find exactly who was distributing stolen goods, making it much more difficult for thieves to sell stolen drugs legally.
Improve Supply Chain Logistics
Earlier, most pharma companies did not have visibility on their product once it left their factories. This led to a higher chance of avoidable delays, inefficient delivery, and even adulteration. The track-and-trace system will provide companies with complete visibility on their product, from manufacturing to delivery. This gives them the power to improve supply chain logistics by identifying bottlenecks and monitoring any kinds of suspicious activities.
The pharmaceutical industry is strictly controlled by multiple compliances to ensure that the general public is not threatened by spurious, sub-standard medicine or placebos. Obtaining the proper compliance certification requires companies to demonstrate their manufacturing and distribution processes and prove that there is no scope for adulteration. Track-and-trace systems provide highly accurate data on this and can go a long way in providing evidence of the pharma company’s credentials all along with the manufacturing, packing, and supply chain.
Meet Export Requirements
For most pharma companies, the next step after compliance is export. The Indian government recently extended the date for implementation of track-and-trace networks till July 2019. According to the new regulations, the manufacturer or exporter of drug formulations will have to print the barcode as per the global standards at different packaging levels — primary, secondary, and tertiary, to facilitate tracking and tracing of their products. These are just some of the ways in which track-and-trace systems can help pharma companies achieve greater success. The decision to implement this technology is a no-brainer, so the big question now is who do you partner with to provide you with this system?O4S is one of India’s leading providers of supply chain management technologies. Our clients include some of the country’s biggest multinational companies. They depend on our product to guarantee their brand authenticity and we never fail to deliver. To learn more about the offerings, book an introductory demo at https://o4s.io/request-a-demo.