The role of RFID to improve supply chain sustainability: A systematic literature review and key informant survey

Abstract

This paper presents a systematic literature review on the application of Radio Frequency Identification (RFID) technology for sustainability purposes in various supply chains while primarily focusing on the pharmaceutical supply chain. The review takes into consideration sustainability from an economic, environmental, and social perspective and investigates the various aspects of such a system from both the manufacturer and consumer points of view. The paper highlights the importance, process, and effects of implementing RFID technology in the pharmaceutical supply chain to create a more sustainable and traceable system. The lack of strong scientific studies in the field of sustainability of RFID-enabled pharmaceutical supply chain was identified. In addition to the literature review, this paper also takes into account results from an original survey conducted with current industry professionals and their views on sustainability in the pharmaceutical chain. The review’s findings can help frame future work and fill the gaps in the literature focusing on the sustainability impact of RFID technology in the pharmaceutical and healthcare supply chain.

Keywords

RFID pharmaceutical supply chain systematic review qualitative survey sustainability

1 Introduction

Pharmaceuticals are a major component of the United States economy. The net amount of money spent on medicines alone in 2021 was approximately 574 billion U.S. dollars. As per the U.S. Congressional Budget Office (CBO), the pharmaceutical industry expended 83 billion dollars on research and development and further research trends are also on the rise given the recent novel COVID-19 pandemic. Further, the CBO also reported that the nationwide spending on prescription drugs increased from 30 billion dollars in 1980 to a net total of 335 billion dollars in 2018 (a tenfold growth!) (Research and Development in the Pharmaceutical Industry, 2021). Such high costs and demands require sufficient output while also providing a safe, secure, and traceable system to ensure patient safety through product status and quality within the supply chain. Gartner reported some emerging technologies including Global Positioning System (GPS), Radio Frequency Identification (RFID), and the Internet of Things (IoT) infrastructure that have revolutionized the monitoring of products and processes, from the origin to the final consumer, in terms of information such as price, date, location, quality, and certifications. These technologies guarantee greater transparency and traceability in the exchange of data through product tracking and tracing. Transparency is the ability to access high-level information about an item throughout the supply chain, whereas traceability is the ability to access granular, item-level information about a particular item throughout the supply chain. While the two aspects vary, they both enable a greater amount of information on a particular item to be known either to the business or the end consumer, or both. Often sought-after information includes where the product was made, by whom it was made, and how it was transported. While product traceability is important for all sectors, it is highly crucial in the pharmaceutical supply chain due to its association with patient safety. Indeed, the FDA’s Drug Supply Chain Security Act (DSCSA), outlines critical steps to build an electronic, interoperable system to identify and trace certain prescription drugs as they are distributed in the United States.

Significant research has been conducted for the use and implementation of RFID sensors in the apparel and food and agriculture sectors that can be similarly implemented into the pharmaceutical supply chain (Denuwara et al., 2019;Flanagan and McGovern, 2022; Gallo et al., 2021). RFID has proven to be cost-effective, secure, and extremely adaptive with pre-existing and upcoming technology (Flanagan and McGovern, 2022; Gaukler et al., 2017). Radio frequency communication fundamentally operates on electromagnetic signals for communication and can read tags outside of the line of sight, a feature that barcode technology lacks. RFID tags are able to store more than just identifier data and come in two forms –active (battery-assisted) or passive (no onboard battery). Such capabilities show that the implementation of RFID can prove to be very beneficial to the pharmaceutical supply chain ( Akhtar and Rizvi, 2021; Huang et al. 2010; Shashi 2022).

When we think of track and trace enabler technologies including RFID, we should not only consider their benefits in terms of security and consumer safety. Less appreciated is the role track and trace can play in building a circular economy or sustainability. Sustainability is vital to the pharmaceutical sector, encompassing social, economic, and environmental aspects. While social sustainability in pharmaceutical supply chain as a fragment of the healthcare system ensures equitable access to healthcare toward improving patient safety, economic sustainability drives innovation to reduce the operative costs while maintaining financial stability. In addition to the social and economic pillars, environmental sustainability in healthcare mostly targets waste, byproducts, and emission reduction and management of disposals. Embracing sustainability enhances ethical practices, stakeholder trust, and contributes to global health goals. Although several academic papers discussed the application of RFID in improving traceability and inventory management in apparel and food industries (Denuwara et al., 2019; Flanagan and McGovern, 2022; Gallo et al., 2021), to the best of our knowledge, only limited number of papers addressed the impact of RFID on social, environmental, and economic sustainability in the pharmaceutical supply chain. Therefore, both RFID and sustainability may be relevant for the pharmaceutical supply chain, but they have likely been addressed in a fragmented manner in the literature.

The aim of this article is to combine a Systematic Literature Review (SLR) and a qualitative key informant survey to understand the current state of RFID usage in different supply chains focusing on the application of RFID for sustainability purposes. The research takes into consideration sustainability from an economic, environmental, and social perspective from both sides of the value chain- manufacturer and consumer- and deep-dives into the traceability aspect of such a system.

The first portion of the paper summarizes the result of the systematic literature review to identify if there is a lack of strong scientific papers in this field and will help us frame future work. Most importantly, the goal of this review is to answer three research questions: (1) What are the main sustainability applications of RFID in apparel, food, agriculture, and pharmaceutical supply chains? (2) What are the main sustainability performance metrics used by those major supply chains when RFID-enabled technologies are used? (3) What is missing in the academic database when addressing the application of RFID for sustainability purposes and what should be done to fill the academic literature gap?

The second portion of the paper provides the results of a qualitative survey that was conducted by key informants across the healthcare supply chain to understand their perspective on the application of RFID toward sustainability.

This paper combines the latest state-of-the-art and expert feedback and outlines how professional research has been carried out on the application of RFID in various supply chains (apparel, food and agriculture, etc.) and how that can prove to be beneficial to make a case for similar research in the pharmaceutical industry with the sustainability focus. The paper also outlines the importance and benefits of RFID implementation in the pharmaceutical supply chain to produce a more sustainable and traceable system. Upon significant structured literature review on the application of RFID, this paper portrays the RFID-related pharmaceutical studies and likewise the lack of such studies in certain sustainability aspects.

2 The methodological approaches

2.1 Structured literature review process

In order to address the proposed research questions mentioned above, this study is based on a Systematic Literature Review (SLR). SLR is a key part of any study and requires a clearly defined plan of action where the criteria are well stated at the initiation of the process.

We systematically searched for English-language articles published between 2010 and 2022. For this research, we investigated the following full-text databases academic including ScienceDirect, ResearchGate, IEEE, Springer, and MDPI. When executing the search, the following terms were used: “Radio Frequency Identification” OR “RFID” AND “sustainability” OR “traceability” OR “traceability and sustainability” OR “social, economic, environmental sustainability” OR “supply chain”.

Figure 1 summarizes the SLR process that was used for this research. An initial search on the above-mentioned databases with the stated criteria was conducted. This research resulted in the identification of 109 articles which were then sorted by location (filtered down to studies conducted in the United States only) and field of study (filtered down to include studies on the topic of sustainability). The filtering produced a collection of over 50 scientific papers. We then reviewed each article’s abstract and identified the 39 most relevant articles which were determined using title bulk subject matter of the respective abstract. We then used a rating criterion (1 to 10) to rank the articles that addressed the impact of RFID on traceability and sustainability in healthcare and pharmaceutical supply chain, 1 being the least relative and 10 being the most relative. Among these 39 articles, 14 articles were ranked 8 + based on a relevancy score that was determined. A comprehensive review was done of the selected 14 articles. The results of this paper are based on those articles.

Fig. 1

Representation of the Systematic Literature Review process that was used for this study.

2.2 Key informant qualitative and quantitative survey

A survey was established and conducted as a means of understanding the degree of awareness when it comes to RFID implementation in a supply chain. More specifically, the survey dives into the experience with the pharmaceutical value chain stakeholders, and how the participants view the impact of RFID integration on the three aspects of sustainability (economical, environmental, and social). Further, the survey can also be used as a good indicator of industry opinions when it comes to the most advanced applications of RFID in the pharmaceutical chain. The survey was divided into three parts: a) demographic information of the participants, b) a general portion surveying the application of RFID toward sustainability in supply chains, and c) a specific portion assessing the application of RFID toward sustainability in the pharmaceutical supply chain. The questions in the general part were geared more towards getting a grasp of the level of experience and awareness the participant has when it comes to RFID applications in any given supply chain. The questions in the specific part of the survey focused on the awareness of the participant when it comes to the types of sustainability, their views on RFID technology as being an advantage or disadvantage for sustainability in the pharmaceutical chain, and if they think RFID implementation will help or hinder the three aspects of sustainability in the pharmaceutical chain.

The survey was conducted using Qualtrics XM and was sent out to 22 potential participants. Out of the 22 recipients, 15 were able to complete the survey. The results of the survey are discussed in the results and discussions section of the paper.

3 Results and discussions

3.1 RFID technology and implementation

The major goal of this SLR was to determine if there are sufficient scientific papers to describe the application of RFID for sustainability purposes in the healthcare and pharmaceutical sector. Another goal was to identify, based on the current state of the art, the advantages, and consequences of RFID implementation in pharmaceutical and healthcare systems. While searching for the application of RFID in specific healthcare and pharmaceutical sectors, we have noticed that a significant amount of scientific research was conducted focusing on other supply chains such as apparel and agriculture.

Figure 2 shows the breakdown of the categories of the 39 articles that were collected for the purpose of the SLR.

Fig. 2

Distribution of the supply chain categories in the articles collected based on abstract relevancy. In total 39 articles were identified.

Both RFID and sustainability may be relevant for the pharmaceutical supply chain, but they have likely been addressed in a fragmented manner in the literature and is the reason why our SLR takes into consideration articles from various sectors. Additionally, upon significant structured literature review on the application of RFID, this paper also aims at demonstrating the RFID-related pharmaceutical studies and likewise the lack of such studies in certain sustainability aspects. Upon full review of these 39 articles, 14 articles were shortlisted based on the relevancy criteria and are the primary sources used to conduct the literature review. Out of the 14 articles, only five referred to the pharmaceutical supply chain, three food and agriculture, four apparel and retail, and two describe the environmental category. The following sections discuss the results of the 14 shortlisted articles. Table 1 summarizes the final articles that are shortlisted for the review.

Table 1

Summary of the 14 articles that are shortlisted for the review

Number	Title	Publication Year	Focused Field	Summary	Focus on Sustainability Metric	Reference
1	A qualitative study of improving the operations strategy of logistics using radio frequency identification	2022	Apparel and Retail	This study works on RFID and its role in two logistics companies in their supply chain networks. The applied RFID technology is evaluated through known theories of operation strategies.	Economic	Flanagan and McGovern, 2022
2	The sustainability strategies in the pharmaceutical supply chain: A qualitative research	2022	Pharmaceutical	This study was driven by interviewing various pharmaceutical professionals and understanding proven methods for improving the sustainability of the pharmaceutical chain. The paper concludes with the constraints involved, operational models, and building sustainability capability.	Social Economic	Shashi, 2022
3	Traceability and detection of counterfeit medicines in pharmaceutical supply chain using blockchain-based architectures	2021	Pharmaceutical	Addresses the issue of counterfeit drugs and medication traceability as a whole and shows methods that can be employed to enhance supply chain traceability to produce a more secure pharmaceutical chain.	Social	Akhtar and Rizvi, 2021
4	A traceability-support system to control safety and sustainability indicators in food distribution	2021	Food and agriculture	This paper points out logistics and the impacts on the food distribution. It can then be used to understand different aspects that go into making a product distribution service more sustainable.	Social Economic	Gallo et al., 2021
5	Secure attribute-based search in RFID-based inventory control systems	2020	Apparel and Retail	This paper shows the work accomplished using RFID to create a secure network that allows for traceability and inventory management.	Economic	Doss et al., 2020
6	Sustainability benefits of RFID technology in the apparel industry	2019	Apparel and Retail	This literature review article focuses on digitalization in the apparel industry and the role of RFID within. The review reports the broader impact RFID has on sustainability in the apparel chain and other areas of improvement that can be attained using RFID.	Social Economic Environmental	Denuwara et al., 2019
7	Establishing dynamic expiration dates for perishables: An application of RFID and sensor technology	2017	Apparel and Retail	This paper looks into the retail industry to understand how product information from different stages of the supply chain can be used to better understand the expiration tracking of that product. RFID is seen as a technology that can be used to dynamically keep track of the condition of the item within the supply chain.		Gaukler et al., 2017
8	Life cycle assessment of RFID implementation in the fresh food supply chain	2014	Food and agriculture	This paper assesses the environmental impacts of RFID technology, and any additional life cycle impacts it can have on the tagged items.		Bottani et al., 2014
9	Using the technology-organization-environment framework and Zuboff’s concepts for understanding environmental sustainability and RFID: Two case studies	2013	Environmental	A qualitative study that uses technology-organization-environment frameworks in analyzing other two case studies involving RFID to study the role of RFID in “green supply chains.”		Angeles, 2013
10	RFID-generated traceability for contaminated product recall in perishable food supply networks	2013	Food and agriculture	This paper demonstrates how RFID-enabled food supply chains can use the technology to understand the status of the product to recognize factors of perishing and help make timely calls for recalls.		Piramuthu et al., 2013
11	RFID-enabled traceability system for consignment and high-value products: A case study in the healthcare sector	2012	Pharmaceutical	This paper presents a case study of an RFID-enabled traceability system in a hospital operating room for the management of consignment and high-value products. Results indicate how this produces a higher item level traceability, improved financial control, upgrades service levels, and reduces inventory shrinkage.		Bendavid et al., 2012
12	The green potential of RFID projects: A case-based analysis	2011	Environmental	This paper dives into 13 case studies to explore how RFID can contribute to producing a potential green IT system and other global markets.		Bose and Yan, 2011
13	A model for quantifying the value of RFID-enabled equipment tracking in hospitals	2011	Pharmaceutical	This paper studies the nation’s healthcare and hospitals system to see how RFID can help reduce equipment shrinkage, increase process efficiency, and increase equipment utilization in hospitals. The results conclude that using the Markov chain model can help achieve this and can also be used to demonstrate the benefits of RFID in other chains.		Qu et al., 2011
14	RFID-enabled pharmaceutical regulatory traceability system	2010	Pharmaceutical	This paper puts forth a process regulation for the healthcare industry to prevent counterfeits and medical human errors through the use of RFID to create a consistent form of information sharing and checking		Huang et al., 2010

3.2 RFID implementation benefits

Based on the literature review, it is clear that the points of focus for the application of RFID can be categorized into six distinctive areas –traceability, process efficiency, security, sustainability, logistics, and future capabilities. To the best of our knowledge, these are also the major areas in that RFID implementation could predominantly improve the traditional pharmaceutical value chain. RFID technology has the ability to scan product identity without being in a line of sight. Another benefit is being able to scan and register multiple RFID tags simultaneously using a single reader. Both features have allowed RFID technology to gain significant ground when it comes to asset tracking and management. A single reader can read most if not all tags on a designated pallet of items within a matter of seconds, saving time while also reducing the chances of human error. This has produced an efficient yet secure method of tracking the entire pallets and individual items within pallets. Using such capabilities, RFID technology has been employed on various products to track items as they move through their respective supply chains. A large-scale example was well demonstrated by Walmart when it mandated that all apparel should be RFID tagged. The industry is now moving towards enforcing their suppliers to RFID tag their products including home goods, sporting goods, electronics, and toys. Another such case study that involves real-life products was employed in the city of Grand Rapids, Michigan to show how supply chain frameworks can be employed for the recycling of HP inkjet printers to produce a more environmentally sustainable supply chain with the help of RFID implementation (Angeles, 2013). The author references the term “green supply chains” when addressing the aim of the paper and the primary reason for employing RFID technology along with an integrated supply chain strategy. By doing so, RFID tagging can help better track inventory throughout the supply chain at all levels after which the city’s recycling program can also utilize this data to ensure proper and environment-friendly recycling instead of throw-away disposal.

From the literature review, we have noticed that asset tracking using RFID has several advantages. Vast research has been conducted to demonstrate these advantages in various supply chains and can likewise be implemented into the pharmaceutical supply chain (Piramuthu et al., 2013). With the implementation of RFID at each level of the pharma supply chain, drugs, and their respective components can be traced thorough the value chain allowing for end-to-end visibility. Clear and real-time data on the location of the item, not only promotes timely decision-making but also helps reduce human error and interaction in the process which has a higher tendency of slowing down the process along with the possibility of error in the process. RFID allows for improved traceability, which can help reduce counterfeited drugs and increase patient safety. It also allows for improved tracking, which can increase the efficiency of the supply chain and reduce inventory costs (Shashi, 2022; Piramuthu et al., 2013). The technology can help in tracking the location, movement, and status of a given product at all times, providing the organization with greater visibility within the supply chain. RFID tags can also be used to track expiration dates and alert customers when products need to be replaced, ensuring that the pharmaceutical industry adheres to safety and quality standards. RFID tags also enable quick and accurate identification of products in the supply chain, which helps to reduce errors and ensures that the right products reach their right destinations.

To investigate the benefits of the RFID application from a sustainability perspective, we dipped dive into the shortlisted articles. Figure 3 shows how the 14 selected articles addressed the various aspects of sustainability (note: there are a total of 15 instances as some literature focused on multiple aspects). As it can be noted, economic sustainability is the top pillar of sustainability that was mentioned by the authors.

Fig. 3

Instances of discussion of sustainability pillars within the 14 articles of the SLR (it should be noted that some literature addressed multiple facets of sustainability).

Based on the results it can be noticed that RFID technology ensures long-term economic prosperity as it will significantly optimize the pharmaceutical supply chain by reducing losses in the form of misplacement and misuse of items. Also, it should be noted that the Return on Investment (ROI) on the profit is much greater than the infrastructure required to establish RFID technology (Huang et al., 2010). Secondly, RFID addition facilitates tracking not only the location of the item but also the condition of the item which helps reduce damages because of environmental factors (Huang et al., 2010, Qu et al., 2011). Moreover, tagged items tracked through the entire value chain can be studied for movement behavior from a supplier and customer end, and these trends can then be used for logistics and improved experiences, much like a system that constantly gets feedback along the way (Huang et al., 2010). RFID technology can be used to automate and streamline certain processes, such as inventory management, which can lead to lower operational costs, higher efficiency, and improved sustainability (Huang et al., 2010). One case study in the hospital setting showed that RFID improved distribution and supply chain efficiency as companies were able to better track and manage goods in transit. Such benefits allowed companies to reduce costs, improve customer service, and increase overall social sustainability ( Qu et al., 2011). RFID implementation can also help pharmaceutical companies to reduce energy consumption while reducing waste and stock outages. Real-time tracking of products helps prevent spoilage which further leads to reduced waste and costs (Denuwara et al., 2019; Huang et al., 2010).

From a future sustainability potential perspective, RFID technology shows great promise with the integration of other technologies to improve its abilities. One such example is the use of blockchain systems. Blockchain technology can provide a secure, tamper-proof, and reliable data storage platform for the tracking of pharmaceutical products. It can also be used to ensure the authenticity of products, reduce counterfeit, and improve the efficiency of the pharmaceutical supply chain by providing real-time access to data. Blockchain capabilities can thus be used to create a system of tracking that allows for greater transparency and accountability within the supply chain (Akhtar and Rizvi, 2021). Blockchain allows for a more secure method of inventory tracking while enhancing product traceability throughout the entire supply chain, further optimizing social and economic sustainability. Sensors can also be integrated into existing RFID systems to improve the efficiency and capabilities of pharmaceutical chains. With sensors, RFID tags can monitor the temperature, pressure, location, and expiration date of pharmaceutical products, helping ensure the safety and integrity of products (Akhtar and Rizvi, 2021; Gaukler et al., 2017; Gallo et al., 2021). Likewise, sensor integration can prove to be extremely beneficial to environmental sustainability given it has the ability to track both the status and conditions of the product. Status tracking assists with assuring the location of an item within the supply chain and provides the company and customer with an accurate timeline of delivery for streamlined social sustainability. Condition tracking grants the ability to understand many details in product quality assurance and also helps in preventing product spoilage which usually results in the disposal of the product, thus guaranteeing environmental sustainability. Although our SLR demonstrated the overall benefits of the RFID in improving the sustainability of the supply chains, only a limited number of scientific publications were focused on the Life Cycle Assessment (LCA) analysis of the RFID within a supply chain (Bottani et al., 2014). Bottani et al., in 2014, evaluated the environmental sustainability of the RFID technology through the Life Cycle Assessment (LCA) methodology, considering its application to a fresh product, namely fresh milk. The assessment focused on identifying the benefits that RFID technology provides and studied how impactful the proposed system can prove to be in a positively and negatively influencing manner.

Table 2

Most frequently mentioned benefits of RFID based on the literature review

RFID benefit	Description of the benefit	References
Traceability	•End -to-end tracking at item and inventory level•End -to-end tracking and active feedback at every level of the value chain	Bendavid et al., 2012Piramuthu et al., 2013Gallo et al., 2021
Process Efficiency	•Reduce equipment shrinkage•Reduce staff time searching for equipment•Help facilitate equipment utilization in hospitals and other healthcare settings	Qu et al., 2011Gaukler et al., 2017
Security	•Process regulations•Prevention of counterfeits•Standardization along the supply chains•Allow for system integration•Improving the recall system when needed	Huang et al., 2010Piramuthu et al., 2013Doss et al., 2020
Sustainability	•Better environmental, social, and economic sustainability•Enhance tracking to reduce waste•Improve the ability to identify supplier and customer behavior to amplify the experience•Increase return on investment (ROI) upon implementation as seen in other value chains	Bose and Yan, 2011Angeles, 2013Denuwara et al., 2019Shashi, 2022
Logistics	•Logistic and operational behavior tracking•Improve ability to gain live oversight at item and inventory level to help with future strategies	Gallo et al., 2021
Future Capabilities	•Ability to promote enhanced supply chain aspects such as traceability and security given the ability to integrate futuristic technology like blockchain and sensor systems	Gaukler et al., 2017Akhtar and Rizvi, 2021Gallo et al., 2021

In summary, there is a need to investigate how RFID technology could provide many benefits to the pharmaceutical industry, such as improved product traceability and inventory management, enhanced quality control, and improved sustainability. Although it is recognized that pharmaceutical companies can track and monitor the quality of their products in real-time, reduce waste, and improve the efficiency of their supply chains using RFID technology, case studies and strong peer-reviewed articles are missing in this field.

3.3 Challenges of RFID implementation

The literature acquired for the purpose of the SLR focused on a variety of different supply chains including food and agriculture, apparel, retail, and pharmaceutical. The food industry has been getting more attention when it comes to traceability as the public is more concerned about food safety. This attention has been raised after many public scandals and this has led to significant research into enhancing food traceability (Huang et al., 2010). However, the pharmaceutical supply chain is one critical and safety-focused sector that is least studied. Even with some known long-term benefits of RFID utilization in the hospital and pharmacy settings, there are gaps and challenges in the appropriate models that demonstrate successful RFID implementation (Angeles, 2013). One challenge is the cost of RFID technology which can be prohibitive for some organizations (Gaukler et al., 2017). In addition, several technical and operational issues must be addressed to ensure successful RFID implementation, such as the need for proper system design, the need for available infrastructure, and the need for real-time data management (Shashi, 2022). From the SLR, there is also evident that organizations in various markets around the world have different objectives and ways of implementing traceability. These differences are also specific to an organization’s role in the supply chain, the diversity of the products, the regulatory and business environment, and different strategies in terms of costs and benefits (Bendavid et al., 2012). Following this statement, Bendavid and team in 2012 stressed that the healthcare sector needs increased security for the following reasons: (i) to comply with regulatory requirements and guidance on product recall and withdrawal, (ii) to comply with supply chain trading partner’s specifications, (iii), to increase the efficiency of operations such as logistic management and quality management (iv) to support patient safety, (v) to ensure product authentication, etc. The SLR also pointed out that to prevent a sensitive data breach, it is important for appropriate security measures and regulations to be put in place to protect the confidentiality of the data transmitted by RFID. Similarly, a lack of standardization can make it difficult for interoperability within the same supply chain as different RFID systems may use different protocols or data formats. This can create unnecessary confusion and inefficiencies in the supply chain (Doss et al., 2020); Denuwara et al., 2019). Table 3 summarizes the issues associated with the RFID technology based on our SLR.

Table 3
Summary of the major issues associated with RFID technology based on our literature review

Field Issue References

Infrastructure •Cost of tags, readers, software, middleware, etc.•Initial financial investment Angeles, 2013Gaukler et al., 2017

Security •Cybersecurity issues•Private and personal data Denuwara et al., 2019Doss et al., 2020

Standards and Protocols •Lack of standards and protocols•Lack of end-to-end interoperability Angeles, 2013Doss et al., 2020

Regulations •Lack of proper testing and validation processes specifically for pharmaceuticals Bendavid et al., 2012Angeles, 2013Doss et al., 2020

Lack of Research •Lack of studies on the ROI of the application of RFID within the entire supply chain Denuwara et al., 2019Doss et al., 2020Shashi, 2022

Field	Issue	References
Infrastructure	•Cost of tags, readers, software, middleware, etc.•Initial financial investment	Angeles, 2013Gaukler et al., 2017
Security	•Cybersecurity issues•Private and personal data	Denuwara et al., 2019Doss et al., 2020
Standards and Protocols	•Lack of standards and protocols•Lack of end-to-end interoperability	Angeles, 2013Doss et al., 2020
Regulations	•Lack of proper testing and validation processes specifically for pharmaceuticals	Bendavid et al., 2012Angeles, 2013Doss et al., 2020
Lack of Research	•Lack of studies on the ROI of the application of RFID within the entire supply chain	Denuwara et al., 2019Doss et al., 2020Shashi, 2022

In summary, the implementation of RFID technology in the pharmaceutical industry can provide numerous benefits, such as improved accuracy and efficiency. However, several challenges must be addressed, including technical and operational issues, organizational and environmental concerns, and the cost and infrastructure of implementation. There is little research in the field of RFID implementation in the pharmaceutical supply chain but not as much as in other supply chains. More research and case studies are needed to better understand the practical challenges of RFID implementation in the pharmaceutical chain. By understanding and addressing these challenges, organizations can ensure a successful transition to RFID-based systems and improve the overall sustainability of their businesses.

3.4 Quantitative and qualitative survey results

The survey was developed using Qualtrics XM and was sent out to 22 potential participants. Out of the 22 recipients, 15 were able to complete the survey and these results are quantified below in an anonymous format. This survey was used to demonstrate a collective opinion of the industry professionals when it comes to real-world implementation of RFID technology in pharmaceutical industry. Our goal was not to necessarily draw concrete results from this survey, hence combining them with the results of SLR. The designed survey consists of 11 questions with the first six questions dealing with participant awareness and experience with any general supply chain followed by five questions geared towards sustainability and the pharmaceutical supply chain. As can be seen in Fig. 4, twelve out of fifteen participants are very informed about RFID applications in the supply chain and only three are somewhat experienced.

Fig. 4

Histogram showing how informed participants are regards to the application of RFID technology in the supply chain. The ranking is scaled from 1 through 3 with 1 being not informed, 2 being somewhat informed, and 3 being very informed. Please note that the identities of participants is kept confidential and thus each participant is referred to alphabetically.

Likewise, Fig. 5 shows the distribution of what participants think of the benefits of RFID within a supply chain. Related to that, 12 out of the 14 respondents claimed that RFID is beneficial while the remaining two expressed that RFID will be beneficial in the future upon further research and integration with other systems. The purpose of the first six questions of the survey was to establish the degree of understanding of the current industry experts when it comes to the broader benefits of RFID used in any supply chain and whether it can be considered a technology that will benefit supply chain systems in place today.

Fig. 5

Participants’ opinions on the benefits of RFID in any given supply chain. 12 out of 14 participants replied with a “Yes” when asked if RFID technology has any significance for a supply chain.

As can be seen from the Figures and the data represented within these charts, it is clear that the industry experts are aware of the benefits of RFID technology. At the same time, data also shows that further research and a rise in awareness can additionally increase confidence in the implementation of RFID technology in pre-existing supply chains.

The second portion of the survey was focused on the specific sustainability application of RFID within the pharmaceutical supply chain. As mentioned before, the sustainability of a value chain can be divided into three distinctive aspects- environmental, economic, and social. Achieving sustainability requires a holistic approach that considers the interconnection of these three aspects. Questions 7 through 11 aimed at understanding participants’ awareness of this concept and how this can be further implemented in the pharmaceutical supply chain. Regarding Fig. 6, it is important to note that participants are mainly “moderately familiar” when it comes to the three pillars of sustainability, showing that there is a demand for more information on the topic.

Fig. 6

Distribution of awareness of participants on three aspects of supply chain sustainability: environmental, economic, and social. Almost half of the participants have moderate knowledge.

The importance of sustainability of the pharmaceutical chain is a pressing issue and can only be further promoted if key informant stakeholders (such as the participants of the survey) are aware of these topics. The last three questions of the survey focused on specific environmental, economic, and social sustainability with each question asking whether the participant believes that the specific aspect in question will benefit from RFID tagging. The results for these three questions are shown in Fig. 7.

Fig. 7

Distribution of participants’ thoughts on how RFID tagging will affect the three pillars of sustainability within the pharmaceutical supply chain. A good portion of participants expressed the need for more research in this area.

Firstly, it is clear that all participants believe that RFID implementation will not hinder sustainability in any form. Out of all the responses received, the majority of the respondents believe that RFID tagging will help all parts of sustainability when integrated into the pharmaceutical supply chain, especially environmental sustainability. About the same figure, it should also be noted that the second frequent response was that RFID tagging will help improve the sustainability of the pharmaceutical value chain but only with additional research on the topic. As stated previously in this SLR, all value chain applications of RFID tagging are distinctive and require their procedures of study and validation. The industry expert rapport on RFID tagging is mainly positive but there is also a prominent demand for further studies specifically within the pharmaceutical value chain. Most of the respondents that expressed a need for the further study also expressed that less is known at moment to sufficiently hypothesize that RFID integration will have a positive effect on sustainability. Another question from the second portion of the survey asked participants to discuss what specific aspect of the pharmaceutical supply chain can be improved using RFID tagging that they believe will lead to enhanced sustainability. The responses are in good accordance with the results of the SLR. One of the most common responses was that RFID tagging of the pharmaceuticals will lead to better item tracking which in turn will promote efficient utilization of resources, better inventory management, and an overall effective waste management system. More responses included the ability to track the location of items to reduce errors and delivery times. Others wrote that enhanced item tracking through RFID tagging can allow for better recognition of expired medication.

The overall responses to the survey show that the supply chain experts are aware of RFID benefits. However, that does not entirely translate into the sustainability benefits of the technology. Most of the participants showed a clear understanding of the three aspects of sustainability but expressed concern when it came to predicting the impact on the sustainability of RFID tagging within the pharmaceutical supply chain. Most were in favor of improved tracking technology while others stated that it is too early in the process to make an informed decision. The key informant stakeholders’ results highlight that RFID technology is not considered novel, yet its implementation in the pharmaceutical supply chain has not gained significant attention. It is also clear that there is a need to promote evidence-based research to clearly determine the pros and cons of the application of RFID in different aspects of sustainability within the pharmaceutical supply chain.

4 Lesson learned and future recommendations

The SLR highlighted that RFID technology in various supply chains has become increasingly popular. This technology can improve visibility, reduce errors, and ensure the safe and secure delivery of products. This SLR also provided an overview of the potential benefits and challenges of RFID implementation in the pharmaceutical supply chain. Although it is recognized that pharmaceutical companies can track and monitor the quality of their products in real-time, reduce waste, and improve the efficiency of their supply chain operations using RFID technology, case studies, and strong peer-reviewed articles are not sufficient in this field.

From a sustainability perspective, the detailed studies around environmental sustainability challenges cannot be ignored. There is a need to consider the environmental implication of RFID such as minimizing waste and the potential for energy efficiency. Socially, RFID technology can provide a transparent yet traceable view of the products within the supply chain. This allows for more informed decision-making on both ends of the value chain including supplier and consumer and improves patient safety and satisfaction. Economically, RFID can reduce the need for manpower for manual interventions and human errors. It is clearly visible from the SLR that RFID technology can prove to be extremely beneficial to most supply chains. However, the SLR pointed out the lack of evidence-based papers on the RFID application benefits for the pharmaceutical supply chain.

From an industrial standpoint, a survey was conducted to gain input from current supply chain professionals to understand their perspective on RFID tagging and its application toward pharmaceutical sustainability. The results of the survey demonstrated that participants are confident in RFID technology and believe that supply chains in general will benefit dramatically from such implementation. However, the same cannot be said about the impact on the sustainability of the pharmaceutical supply chain. All the industry participants have a positive opinion on the implementation of RFID in the pharmaceutical supply chain, but some expressed that not enough is known to make an informed decision on whether or not RFID integration will drastically affect the sustainability of the value chain. This conclusion points out, once again, the need for more in-depth research in the field.

RFID technology needs to be established at all levels of the supply chain so it can be used to improve the efficiency, accuracy, and traceability of the pharmaceutical supply chain. Based on the SLR, we have found that there are models that can be used to set the foundation for the quantitative assessment of environmental sustainability and RFID. One such method is based on the technology-organization-environment (TOE) framework proposed by Tornatzky and Fleischer in 1990 (Tornatzky and Fleischer, 1990). This framework uses three elements that influence technological adoption —the environmental context, the organizational context, and the technological context. Angeles in 2013 (Angeles, 2013) used this framework to study two different case studies featuring the use of RFID to meet environmental sustainability requirements: Hewlett Packard’s recycling of its inkjet printers in Brazil and the City of Grand Rapid’s (Michigan, USA) garbage collection and recycling program. A similar approach can be considered to develop the future research plan.

Moreover, to assess the economic sustainability and calculate the return on investment (ROI) of the RFID, inspired by the apparel industry, a step-by-step process description can be outlined as such:

Identify the value of RFID technology in the pharmaceutical supply chain.

Define the scope of the project and identify the stakeholders involved.

Determine the type of RFID system to be used and the infrastructure required to support it.

Develop and design the system, including selecting the right type of tags and readers.

Implement the system on a small scale.

Pilot test and validate the system to ensure that requirements are met.

Monitor and maintain the effective working of the system.

Evaluate the system to determine success and areas for improvement.

Assess the value proposition and determine the ROI.

Disseminate the results with the community.

Overall, the combined literature review and expert feedback evidence suggest that RFID has the potential to play a valuable role in advancing sustainability across a range of economic, social, and environmental dimensions of the pharmaceutical supply chain. However, there is an absolute need for scientific evidence in this field. More cross-functional studies should be performed at small and large scales to demonstrate the techno-economic feasibility of RFID implementation in pharmaceutical and healthcare settings. Future works should provide information on the advantages and challenges of the RFID application compared with traditional identification systems such as barcodes. Our team is closely collaborating with industrial partners to perform those projects and fill the gap in this area.

Footnotes

Acknowledgments

The internship of the A.P. to work on this project was funded by the Axia Institute –Michigan State University. The authors would like to thank the survey participants for their contribution.

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