SupplyScape Announces Yankee Group White Paper Findings: Electronic Pedigree Delivers ROI Across Pharmaceutical Supply Chain

Technology Research Firm Shows Business Value Of Electronic Drug Tracking Solutions Beyond Compliance

CAMBRIDGE, Mass., October 5, 2005 - SupplyScape Corporation, the leader in pharmaceutical pedigree solutions, today announced the findings from a Yankee Group white paper that analyzes the value of electronic pedigree (e-pedigree) solutions across the pharmaceutical supply chain. In the industry-first paper, Yankee Group thoroughly outlines real and immediate business value derived from the technology, which is used to verify and authenticate drugs, reducing occurrences of counterfeit pharmaceuticals.

"The analysis shows there is a solid business case for e-pedigree across the supply chain for manufacturers, wholesalers and retail pharmacies," said Yankee Group Vice President of Consulting Andy Bibby. "All supply chain partners will realize a positive return on investment."

"All supply chain partners will realize a positive return on investment. The analysis shows there is a solid business case for e-pedigree across the supply chain for manufacturers, wholesalers and retail pharmacies."Andy Bibby, Vice President of Consulting, Yankee Group

According to SupplyScape CEO Shabbir Dahod, it's clear that e-pedigrees can yield many advantages beyond patient safety and regulatory compliance, but only if solutions are implemented with a clear ROI strategy right from the beginning.

"With compliance deadlines looming, it's easy to fall prey to tunnel vision when developing an operational response. But simply by choosing a partner with supply chain, technology and regulatory expertise and by asking the right questions, the same investments required for regulatory compliance can also deliver competitive advantage."

White Paper: ROI for Wholesalers, Retailers, Manufacturers Can Be Realized In First Year

The white paper shows that quantifiable benefits can be realized for supply chain partners across the pharmaceutical supply chain.

For example, many wholesalers can achieve positive payback on their initial e-pedigree solution investment within the first year of operation through benefits such as immediate reduction of mispicks and lost sales from out-of-stocks. In fact, a typical midsize wholesaler, using certain operational assumptions for analysis, could enjoy an impressive 52% ROI in the first year and almost $1.5 million/year in ongoing operational net benefits. Retailers, whose investments are significantly less, enjoy similar returns, while potential benefits to manufacturers are even greater.*

"By choosing a partner with supply chain, technology and regulatory expertise and by asking the right questions, the same investments required for regulatory compliance can also deliver competitive advantage."Shabbir Dahod, President & CEO, SupplyScape

"Business cases for the manufacturer, wholesaler and pharmacy are strong because they look beyond the pure anti-counterfeiting capability of e-pedigree into supply chain business processes and quantifiable value," says the white paper, titled The Value of Electronic Product Pedigree Across the Pharmaceutical Supply Chain.

The Yankee Group white paper indicates that e-pedigrees can be implemented at any point in the supply chain and - even without data sharing - significantly enhance business models, methods and systems. Furthermore, solutions can be implemented within current technologies and applications, with or without RFID.

"To date the only ROI analysis has focused on RFID, but the truth is most of the business benefits can be implemented with current technology," said Bob Goodman, author of the white paper, formerly of Yankee Group and now a principal consultant at Get it Done Consulting. "More value can be gained when the industry adopts RFID-tagged products."

Specific business benefits highlighted in the white paper include:

Improved shelf life management
Improved/increased product demand visibility
Improved inventory availability
Streamlining business processes and increased efficiency through automation (i.e., reduce mispicks and out-of-stocks)
Better recall management

For more information, contact SupplyScape Corporation.

About SupplyScape

SupplyScape provides electronic pedigree software and expertise to safeguard and secure the pharmaceutical supply chain. A leader in defining an open universal standards-based electronic pedigree solution for the pharmaceutical industry, the company's executives enable manufacturers, wholesalers, distributors and pharmacies to derive sustainable business value from their investments in electronic pedigree and supply chain security. For more information, visit www.supplyscape.com.