Protecting the supply chain
Article courtesy of IAHI(International Animal Health Industry) – September 2014
Justin Schroeder is the Executive Director, Marketing, Business Development & Design at Packaging Coordinators Inc. (PCI). Mr Schroeder is responsible for new account development, global marketing, and creative package design with a focus on the development and commercialisation of unitdose and compliance-prompting packaging. In the world of human health, the increased call for establishing a clear and traceable pedigree for pharmaceutical supply chain had driven the US government to take up legislation. Hotly debated by the California Board of Pharmacy and several times delayed, the issue of serializing medications has now been put into law by the federal government, making the issue unavoidable. Globally, the European Union is debating its own legislation and countries in emerging markets such as South Korea and Turkey are more rapidly bringing laws to legislate that product is serialized as a precursor for sale in their country.
Estimates vary, but a World Health Organization report dating back more than a decade conservatively estimated that the revenue generated by substandard or counterfeit medications exceeded $32 billion dollars. Given the rapid growth in the market for Animal Health products, its attractiveness for supply chain diversion and counterfeiting is also on the rise. The global market for Animal Health medications is estimated at $22 billion dollars. Spending specifically on companion animals is expected to rise 3.3 percent annually in the United States, and more than 10.2 percent in emerging economies such as Latin America.
A major pharmaceutical and animal health client recently came to PCI looking for a solution to their challenge in authenticating the supply chain for their product. They were looking for a multi-tiered anti-counterfeiting and product authentication solution, allowing them to identify product in the supply chain, confirm its authenticity, and affirm its pedigree through their sales channels. Their goal was to protect the valued relationship they maintain directly with veterinarians for sale of their products and avoid the gray market sale of their products. This is what is referred to in the industry as diversion, whereby veterinarians resell animal health medications to third party resellers. This resale dilutes the value of their products and the important role of the veterinarian, while at the same time introducing opportunities for adulterated and potentially counterfeit products to enter the supply chain.
Working with the client, PCI developed a serialization solution that met their multi-tiered needs…