Capsule Newsletter, Issue 001, June 2006
H. D. Smith, First E-Pedigree Compliant Distribution Center
By Jeff Durand, SupplyScape Vice President of Services
H. D. Smith (Springfield, IL) spent the last 50 years growing from a local pharmaceuticals distributor to its present national network of DCs, establishing itself as the fourth largest national pharmaceutical wholesaler in the U.S. It owes its success in part to a strategic acquisition of drug wholesale/distribution companies located across the country, and in part to its technology leadership within the industry. The company has pioneered enterprise, supply chain, and logistics technologies to assure quick and accurate delivery of medical devices, prescription medications, and over-the-counter products to its pharmacy customers.
Out on the Tech Forefront
Back in 2004, when EPC/RFID compliance with Wal-Mart and Department of Defense mandates was first gaining widespread attention, H. D. Smith was already scanning Purdue Pharma's RFID tagged product at the item level into its warehouse, as well as tagging high-profile drugs that came in untagged and shipping them to pharmacies in the first true RFID-based supply chain pilot. At the same time, between 2004 and 2005, it was also piloting an innovative supply chain anti-counterfeiting and security system, using electronic pedigree software by SupplyScape. The software tracks and authenticates the pedigree for each incoming drug. Initially the pilot tracked RFID-labeled bottles and their pedigree documents for Purdue's pain medication, OxyContin, which is a target for diversion.
E-Pedigree, Phase Two
Fast-forward a year, and H. D. Smith is currently installing the latest release of SupplyScape RxSecurity 3.1 in its Pompano Beach, Florida distribution center, anticipating an electronic pedigree rollout. "Well before Florida's July 1st e-pedigree deadline, H. D. Smith will be managing electronic pedigrees in accordance with Florida regulations." noted Robert Kashmer, vice president of information technology for H. D. Smith. "It's no longer a pilot. Now it's operational."
Data Capture Independence
"We have RFID-labeled product coming in from Purdue, Pfizer, and a few other manufacturers, but we're not dependent on any one data-capture methodology. The e-pedigree software also supports 2D and linear bar codes, as well as unserialized products," Kashmer said.
“Our main goal is patient safety, which is why we're leading the industry on electronic pedigree. We're also working with HDMA to help the industry move forward on RFID, a very exciting technology.”
Robert Kashmer, H. D. Smith, Vice President of Information Technology
According to the state of Florida, it is incumbent on
H. D. Smith, the first company downstream from the manufacturer, to generate the pedigree. For California shipments, on the other hand, whose electronic pedigree bill goes into effect in January,
H. D. Smith will receive the electronic pedigree transmitted electronically from the manufacturer. The SupplyScape electronic pedigree software uses the EPCglobal Draft Pedigree Messaging Format to address all state requirements and ensure interoperability as electronic pedigrees are sent and received between companies.
Kashmer explains how electronic pedigree works: "Our pilot last year was very successful and we did the major integration work, interfacing the software with our proprietary enterprise system, last summer. We've also interfaced it to our WMS system for lot tracking, and to the RFID system."
Electronic pedigree initiation: The necessary information, manufacturer and product ID, lot and date data, NDC number, and expiration date, will be transmitted to H. D. Smith by the drug manufacturer. SupplyScape E-Pedigree at H. D. Smith initiates the pedigree, certifies it with the digital signature, and provides it to downstream customers.
Benefits: From H. D. Smith's perspective: "Our main goal is patient safety. While leading the industry on pedigree, we're also working with HDMA, I'm on the technical committee, to help the industry move forward on RFID. We believe that ultimately RFID is key; its non-line-of-sight scanning capability will give us efficiencies in the supply chain and also at the pharmacy end in patient safety and efficiency."
With the July 1, 2006 deadline looming, there is a lot of preparation going on in Florida right now, and H. D. Smith is on the forefront. Their electronic pedigree security and anti-counterfeiting system will be in full swing well ahead of the July 1 deadline.
