1. Smarter, safer Pharmaceuticals
John Krachenfels
Supply Chain Visibility and Optimization for a smarter planet

2. The Business Drivers for Supply Chain Visibility of Pharmaceuticals
5/31/2018
The Business Drivers for Supply Chain Visibility of Pharmaceuticals
8-10% of worldwide drug supply is counterfeit  $7.5 billion lost per year by 2010
Industry participants carry significant excess inventory due to lack of downstream visibility
The Pharmaceutical supply chain is perhaps one of the most complex supply chains of any industry. Here are some interesting facts.
According to the World Health Organization,
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approximately 8-10% of the worldwide drug supply is counterfeit. This equates to up to seventy five billion dollars a year in lost sales by 2010
Overall,
it is estimated that 4.5% of revenue is lost due to supply chain inefficiencies.
4.5% of revenue is lost due to supply chain inefficiencies.

3. Governments & Industry are concerned for patient safety
5/31/2018
Governments & Industry are concerned for patient safety
Legislation mandating serialization is emerging worldwide
This broad array of emerging regulation requires a Global Compliance
Strategy and serves as a catalyst Supply Chain modernization.

4. Technology Components
5/31/2018
Technology Components
InfoSphere Traceability Server
WebSphere Sensor Events
RFID
2D Barcode
Data Matrix
Serialization
Standard Data Capture
Reports/Alerts & Event Notification 4 4

5. IBM Solution supports Authentication or Track & Trace

6. Expected Business Benefits from Track and Trace
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Expected Business Benefits from Track and Trace
Source: AMR Research, 2009

7. Supply Chain Visibility Reverse Logistics Supply Chain Integrity
5/31/2018
IBM’s Solution for Pharmaceutical Track & Trace can address multiple business use cases
Supply Chain Visibility
Cold Chain Management
Shipment Verification
Sales Information
Inventory Management
Reverse Logistics
Returns verification
Targeted Recall
Chargeback Resolution
Supply Chain Integrity
Diversion Detection
Electronic Pedigree
Product Authentication
The Traceability Server Application Suite for Pharma may consist of:
Pedigree and Serialization Compliance (Prerequisite for all applications in the suite)
Material Flow Management.
Expiration Management
Cold Chain Management
Vendor Managed Inventory
Targeted Recall
The Traceability Server Application Suite for Manufacturers may consist of:
Returnable Container Management (Prerequisite for all applications in the suite)
Parts Management
Work In Process Management
Just in time sequencing
Yard management
Dealer Inventory Management
The Traceability Server Application Suite for Food & Beverage may consist of:
Food Safety Compliance (Prerequisite for all applications in the suite)
Expiration management
Cold chain management
Product Authentication
Diversion Management

8. Open Loop vs. Closed Loop in Use Case Selection Criteria
5/31/2018
Open Loop vs. Closed Loop in Use Case Selection Criteria
2 tier open loop track & trace
Higher
Business Value
1 tier open loop track & trace
Lower
Closed loop track & trace
Shorter
Longer
Time to Value

9. IBM Solution for Pharmaceutical Track & Trace
5/31/2018
IBM Solution for Pharmaceutical Track & Trace
Standard Network Architecture
Solution Architecture
Readers/Scanners
Reader Protocol
Filtering &
Collection
ALE Interface
EPCIS Capture
Application
EPCIS Capture Interface
EPCIS Event
Repository
EPCIS Query Interface
Internal Applications
External Applications
Readers/Scanners
Reader Protocol
WebSphereTM
Sensor Event Server
ALE Interface
EPCIS Capture Interface
InfoSphereTM
Traceability Server
EPCIS Query Interface
ePedigree
Shipment
Verification √
InfoSphereTM Traceability Server √
Traceability Server is an implementation of the EPCIS standard, which is part of the EPCglobal/GS1 standard network architecture.
Traceability Server is comprised of a data capture interface, data repository and data exchange interface and is completely aligned with EPCglobal standards.
IBM has another software product within the stack, the WebSphere Sensor Event Server. Together, Traceability Server and Sensor Event Server make up the IBM Track & Trace Solution and work together to enable capture, store and share of EPCIS data. √
WebSphereTM Sensor Event Server √
√ GS1/EPCglobal Certification

10. 5/31/2018
Summary
Serialization mandates have emerged globally as an important means to protect patient safety.
.Item Level Serialization is here to stay.
Industry leaders are leveraging their serialization infrastructure to drive competitive advantage.
New analytics and business eventing capabilities help customers drive significant value
IBM's Track and Trace solution can help achieve both of these objectives based on industry standards
EPCglobal certified product –
High performance data repository – stress tested to handle production line speeds
Available business features – address key business use cases in multiple industries
Robust reporting and alerting – functionality beyond the standard to drive business value and ROI
Security capabilities – policy-based access control down to the attribute/value pair
Distributed architecture – modeled after banking system to enable enterprise scalability
Highly flexible – works with multiple technologies and data carriers (RFID, 2D Barcode)