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194 IoT Applications — Value Creation for Industry
chargeback’s, product returns, and concealed shortages, managed care and
Medicaid rebates have been a growing concern. In total, the study found that
revenue leakage causes pharmaceutical companies to lose approximately 4.4%
of overall revenue on an annual basis. For 2009, most forecasts predict U.S.
pharmacy sales will be roughly $252 billion. That means as an industry, pharmacy
manufacturers will collectively lose approximately $11 billion through
channel inefficiencies. That’s equivalent to total revenue for a top 20 pharmaceutical
manufacturer simply disappearing each year. In light of these concerns
the FDA has ranked — in order of risk of adulteration — more than 1,000 active
drug ingredients. A risk based assessment and model to analyse supply chain
data to address lifecycle issues may be an area that big data technologies can
be useful — once enough information is collected electronically using Automated
Information Data Collection (AIDC) technologies to create meaningful
exploratory data.
3.7.1.9 Keeping better track of things
In each of the above scenarios we see a convergence of supply chain security,
product authenticity and patient safety data and the promise that this data
may be incorporated in optimal data sets to facilitate the development, trials
and approvals of New Chemical Entities (NCEs) and New Biological Entities
(NBEs).
In summary, as biologics industry stakeholders, including manufacturers,
distributors, health service providers and regulators, invest in serialization initiatives
by, equipping production lines with linear and 2Dbarcode and/or RFID
labelling machinery and outfitting distribution centres, pharmacies and hospitals
with RFID/2D barcode readers, this author recommends a commensurate
investment in defining and collaborating with biologics industry stakeholders
on where the data that is collected can most effectively be used to optimize
product security, patient safety and eventually, improved patient outcomes
which in turn will feed new product development for research sponsors.
3.8 What the Shopping Basket Can Tell:
IoT for Retailing Industry?
The Internet of Things has become a dominant term for describing the integration
of information with real-world products, items, and things. Internet