Medicine shortages are a global problem that affects not only developing nations, such as India and china, but also developed nations, including the UK and the EU. Reasons vary, including dependence on Active Pharmaceutical Ingredient (API), quality control issues, a lack of data on inventory, and supply chain problems, among others. The situation is dire in nations on the African continent, affecting millions of people.
According to a briefing by the UK Parliament, in February 2024, a study found that 34 countries (including the UK) require manufacturers to notify about upcoming shortages; 20 impose stock-reserve obligations; 18 impose export bans; 35 have stakeholder task-forces.
A recent report by the Nuffield Trust stated that the UK is facing its worst drug shortage problem in four years, with nearly 1,938 supply-disruption notices reported. The UK’s medicine-supply disruptions have been attributed notably to the post-Brexit trade environment: reduced imports, especially from the EU. The report also found the UK had the lowest import growth of any G7 country in medicines since 2010.
Additionally, a document by the European Federation of Pharmaceutical Industries and Associations (EFPIA) notes that 64 % of APIs are manufactured in Europe (EU-27/Switzerland/UK), underlining the concentration of upstream dependency.
In India, as a major supplier of generics globally (supplying over 50% of Africa’s generics, 40% of US generics demand, 25% of the UK’s medicines), the strain is felt in API dependence, traceability issues, and export-regulation shifts.
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How RFID Can Help Resolve Medicine Shortages?
A shortage typically arises when supply chain visibility is low: e.g., delayed API deliveries, unexpected manufacturing disruption, logistical bottlenecks, or regulatory issues. RFID offers a way to improve visibility across the chain.
Consider this-
a.If upstream API shipments are delayed, RFID tracking (and integration into enterprise visibility systems) may trigger alerts so manufacturers can allocate alternatives.
b. In distribution, if RFID technology reveals that stock is stuck in transit or warehouse unexpectedly long, re-routing may be possible.
c. For regulators monitoring shortages, aggregated RFID-derived data may help forecast impending shortages faster.
The UK government’s “Managing a robust and resilient supply of medicines” strategy, published in May 2025, emphasizes international collaboration (including with India) and the need for traceability and RFID technology, which can be an efficient, cost-effective driver in supply chain automation, boosting real-time visibility and accuracy in data.
RFID Can Streamline the Pharmaceutical Supply Chain
Pharmaceutical raw materials (APIs, active pharmaceutical ingredients) may be sourced from one country, formulation may be done in another, packaging in a third, and distribution across many markets. The result is long lead-times, many hand-offs, and risk of delay, waste (expiration, overstocking), and lack of real-time visibility. Technologies such as barcodes and RFID could enable tracking and tracing of medicines, improving distribution, reducing waste, and enhancing access.
An RFID system typically comprises RFID tags (affixed to cartons, packs, or even individual units), RFID readers/scanners (some requiring separate antennas), and a software system to process the captured data for end users. Since RFID tags can be read in bulk sans line-of-sight, they enable faster inventory counting, automatic scanning during inbound/outbound logistics, and real-time location/status updates.
For pharmaceutical manufacturers, distributors, and pharmacies, this means:
1.Automated stock-checking and reduction of manual labor and human error.
2. Real-time tracking of pallets, cartons, even vials in some cases, so that location and status (e.g., “in transit”, “in warehouse”, “at pharmacy”) is known.
3. Knowing individually when a pack was produced, shipped, and received, one can prioritize dispensing the oldest stock and avoid waste. RFID is very useful in implementing FIFO at the inventory level.
4. Improved cold-chain monitoring (when combined with temperature sensors or IoT), especially for biologics and sensitive medicines.
Consider this- if a distributor knows that a certain medicine pack has been delayed, the system may automatically trigger alternative sourcing or redistribution. RFID’s capability to support these real-time decisions makes it a useful tool in the “shortage-aversion” toolkit.
When supply chains have greater visibility, companies and regulators can detect bottlenecks, anticipate shortages, reroute supplies, and manage buffer stocks more intelligently.
RFID Can Address Pharmaceutical Quality Control
Quality control in the pharmaceutical context is multifaceted: it includes ensuring correct formulation, packaging integrity, expiry and stability, cold-chain compliance (for temperature-sensitive products), and proper handling throughout distribution.
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1.RFID Tagging for Quality Assurance
Pharma Manufacturers can embed a unique identifier (UID) by affixing an RFID tag to a pack (or a sub-pack), which is logged at every stage, from production to packaging, warehousing, distribution, and retail pharmacy.
If the system detects that a particular batch or tag has not passed a certain checkpoint (for example, not read at production, or read but not recorded at dispatch), alerts can be triggered.
2. Cold-chain and stability monitoring
When combined with IoT sensors and RFID readers, it is possible to monitor temperature and humidity conditions during transit/storage and log the status of each tagged item. If a pack of a biologic drug is exposed to improper temperature for too long, it can be flagged, quarantined, and removed from circulation; thus preventing compromised medicines from reaching patients.
3. Regulatory compliance and audit trails
RFID supports digital traceability, which aligns with regulatory demands for “track and trace” systems, serialization, and audit-capable logs. The WHO has pointed out that harmonized traceability (using standards) is essential to prevent counterfeiting and ensure safety. Having the RFID tag history makes it easier for regulators and companies to reconstruct the chain of custody, detect anomalies, and conduct recalls if needed.
4. Waste reduction and inventory accuracy
From a quality standpoint, proper inventory control ensures that medicines are not allowed to expire unsold or sit undiscovered. RFID enables stock counts to be performed far more frequently and accurately, reducing both overstock (which increases hold costs and risk of expiry) and understock (which can lead to a shortage). Non-use of outdated items also reduces the risk of compromised efficacy.
RFID and Anti-counterfeiting in Medicines: A tool for Authentication
Counterfeit and substandard medicines remain a major global health risk. Estimates suggest roughly 10 % of medicines in low- and middle-income countries may be fake.
Fake medicines may contain wrong dosage, inactive ingredients, harmful contaminants, or no active ingredient at all, endangering patient safety and undermining trust in the pharmaceutical system. The risk is amplified in globalized supply chains, complex distribution networks, and in geographies with weaker regulatory enforcement.
RFID tags allow each pack or unit to carry a unique digital identity. When integrated with a backend verification system, one can track whether a given UID has been legitimately generated, shipped, received, and registered. If a counterfeit pack carrying an invalid UID or one reused from a different context appears in the system, the tag or the backend can detect the anomaly. Moreover, RFID tags are harder for counterfeiters to replicate or tamper with.
How RFID Works in Pharmaceutical Production and Supply Chain
1. At manufacture, each pack is tagged with an RFID inlay which is linked to a unique ID in a secure database.
2. When shipped, the tag is read and its status updated.
3. At the distributor, warehouse, or pharmacy, the tag is read again; if an unregistered or duplicate ID appears, the system flags it.
4. End-user verification (via smartphone or pharmacy reader) may allow the pharmacist or even the patient to scan and confirm authenticity.
The Silver lining: RFID Advancements and Global Adoption in Healthcare
The silver lining in all this is that RFID is no longer a speculative or niche technology for pharma; it is increasingly seen as a strategic asset.
1.Lower-cost RFID inlays/tags- Ultra-low cost circuits embedded under labels make item-level tagging more economically feasible.
2. RFID systems increasingly feed into cloud/IoT platforms, enabling real-time dashboards, analytics on stock flows, predictive alerts for near-expiry, shift in consumption patterns, etc.
3. In Asia-Pacific (including India, China, Japan, South Korea), hospitals and pharma companies are increasingly deploying RFID for drug authentication, asset tracking, and real-time inventory control.
4. The RFID in healthcare market is projected for strong double-digit growth (approximately 16.96% CAGR between 2025 and 2034).
5. In Europe and the UK, regulated environments and serialization mandates support the adoption of RFID or item-level tracking technologies.
6. In North America, RFID adoption is relatively mature in high-value or cold-chain pharmaceuticals, aligning with strong regulatory pressure and larger infrastructure investment.
7. Better patient safety through the reduction of counterfeit/substandard medicines.
8. More resilient supply chains with improved visibility and responsiveness.
9. Lower waste due to improved inventory and expiry management.
10. Regulatory compliance with digital traceability and auditability.
11. Potential cost-savings in aggregate (despite upfront investment) through improved efficiency, fewer recalls, and fewer shortages.
To summarize, Radio-Frequency Identification (RFID) technology is gaining renewed attention as a tool for enhancing visibility, traceability, authentication, and operational efficiency in the medicines value chain.
1. RFID technology offers a visibility/traceability tool that can help mitigate some shortage causes (though not solve all, e.g., raw-material scarcity).
2. Regional policy news (UK, India, EU) indicates increasing regulatory focus on traceability and supply-chain resilience, creating a favorable environment for RFID uptake.
3. Ultimately, widespread RFID adoption may strengthen medicine supply resilience by providing early warning of bottlenecks and enabling more agile re-allocation of supply.
In the context of global medicine shortages, especially in large markets like the UK, EU, and India, the need for improved supply-chain resilience, traceability, and authenticity has never been greater. RFID technology offers a compelling toolset for pharmaceutical manufacturers, distributors, pharmacies, and regulators: from streamlining supply flows, enhancing quality control, thwarting counterfeits, to providing actionable visibility that can help pre-empt or mitigate shortages.
Frequently Asked Questions
● How Can RFID Technology Address Global Medicine Shortages?
The use of RFID technology can unlock real-time visibility and traceability throughout the pharmaceutical supply chain. It helps identify and prevent supply chain disruptions, minimize waste, and manage inventory, among other benefits.
● Can RFID Prevent Counterfeiting in the Pharmaceutical Industry?
Yes. At the manufacturing level and as well as retail distribution level, RFID can help ensure quality check and product authentication via RFID tagging of medicine boxes. RFID tags attached to medicine packs, raw materials, vaccines are hard to duplicate.
● Is It Costly to implement an RFID-based Solution in the Pharmaceutical Supply chain, Production, etc.?
No. With growing RFID adoption, the cost of RFID tags, readers, antennas, etc. has come down significantly, and implementation of such a solution results in better RIO, reducing theft, shrinkage, counterfeiting, and lack of supply chain visibility.
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