Track and Trace Pharma Solutions: Key Benefits for Manufacturers and Distributors

According to government data, the Indian pharmaceutical industry is valued at US$55 billion. The total market size of the industry is expected to reach US$130 billion by 2030. However, this rapid expansion calls for robust safety measures across supply chains. According to the WHO, one in every 10 medical products is substandard. This makes it necessary for concerned authorities and healthcare organisations to have complete visibility over every product being manufactured.

This transparency can be achieved through advanced track and trace pharma solutions. In this blog, we will explore the measures the pharmaceutical industry is taking to ensure transparency at each supply chain node. 

What is Track and Trace in Pharma?

Track and trace refers to the process of tracking and tracing the complete journey of products throughout the supply chain. It refers to the comprehensive monitoring and recording of medical products at every stage, from manufacturing to dispensing and patient care. 

Track and trace works by encoding a unique ID of the product/drug into its barcode. Next-generation data carrier standards are used to encode such high-density data into medical products/drugs. These include GS1 DataMatrix and QR Codes. For individual product identification, these products are provided with serialised barcodes. 

Why is Track and Trace Important in the Pharmaceutical Industry?

Track and trace play an important role in the pharmaceutical industry because of their ability to facilitate accurate and transparent information flow. Below are some reasons why businesses should implement an effective track and trace pharma solution – 

1. Protects brand reputation and combats counterfeiting- Counterfeit medicines not only harm patients but also damage the credibility of pharmaceutical companies. With serialisation and track-and-trace systems, manufacturers can ensure that every product is genuine, safeguarding their brand image and consumer trust. 
2. Ensures compliance with global regulatory requirements – Different regions, such as the EU, the US, and India, have stringent track-and-trace regulations for pharmaceuticals. By adopting robust systems, manufacturers can remain compliant across multiple markets and avoid legal penalties or market access restrictions.
3. Enhances supply chain efficiency with real-time visibility – Track-and-trace solutions provide manufacturers with end-to-end product visibility. This real-time monitoring improves coordination, minimises bottlenecks, and helps in optimising supply chain operations.
4. Helps in recall management by quickly identifying affected batches – If a defect or contamination is detected, manufacturers can swiftly trace the exact batches and remove them from circulation. This minimises risk to patients and reduces the overall impact of recalls.
5. Reduces financial losses caused by fake or diverted drugs – Counterfeiting and grey-market diversion lead to significant revenue loss. Serialisation helps ensure that only authorised products reach the market, protecting manufacturers from profit erosion and supply chain leakages.

Key Benefits of Track and Trace Pharma for Distributors

1. Increases transparency in the supply chain – Distributors gain clear visibility into the movement of pharmaceutical products, making it easier to track their origin and journey. This transparency minimises risks and builds accountability at every stage.
2. Simplifies inventory management and logistics – Track-and-trace systems allow distributors to maintain accurate records of stock, expiration dates, and movement history. This leads to better inventory planning, reduced wastage, and smooth logistics operations.
3. Facilitates smooth regulatory audits and compliance checks – With digital records of product movement, distributors can easily provide the required documentation during inspections and audits. This reduces compliance burdens and ensures adherence to regulations.
4. Reduces risks of handling counterfeit or unauthorised products – By validating every unit’s unique identifier, distributors can filter out fake, diverted, or unauthorised products before they reach retailers, reducing liability and safeguarding patient safety.

Role of Technology in Track and Trace Pharma

1. Barcodes – Barcodes are the foundation of track-and-trace systems. They allow quick product identification, scanning, and verification at every stage of the supply chain. By encoding product details such as batch number and expiry date, barcodes make it easier to track medicines from manufacturing to dispensing.

QR Codes – QR codes go a step further by storing more information than traditional barcodes. Patients, distributors, and regulators can scan QR codes using smartphones to verify authenticity, access product details, and ensure safe usage. This makes QR codes an effective tool for enhancing transparency and consumer trust.

GS1 DataMatrix Barcode – GS1 DataMatrix is the preferred choice of the healthcare industry globally. It can encode dynamic data at high production speeds. In addition, its small size makes it compact and easier to print on small surfaces. Similar to QR Code, it can also encode detailed product data and enable traceability. 

2. Blockchain Technology  – Blockchain provides an immutable, transparent ledger for recording every product movement. By creating a tamper-proof record of transactions, blockchain eliminates the chances of data manipulation and strengthens trust among stakeholders. It ensures end-to-end visibility, making it nearly impossible for counterfeit drugs to enter the supply chain.

Conclusion 

As the industry moves towards adopting more transparent and safer supply chain practices, the adoption of track and trace pharma measures will be inevitable in the near future. This move will not just benefit healthcare service providers but will also benefit patients with safer practices and a more visible pharma ecosystem.