How RFID Labels Enhance Pharma Supply Chain Safety

How RFID Labels Enhance Pharma Supply Chain Safety

 

By Avery Dennison Segment Development Team

08 January 2026

From the manufacturing line to the pharmacy shelf, the journey of pharmaceutical products is complex and highly regulated. Ensuring that the right medication reaches the right patient at the right time is paramount. An error at any point in the supply chain can have serious consequences. This is why robust traceability systems are not just a logistical advantage, but a critical component of patient safety.

Advanced solutions like Radio Frequency Identification (RFID) are transforming pharmaceutical packaging and labelling. By embedding RFID technology into pharmaceutical labels, companies can achieve unprecedented levels of visibility and control. This post will explore how RFID labels support traceability and enhance safety across the pharmaceutical supply chain.

What is RFID and How Does it Work?

RFID technology uses radio waves to identify and track objects. An RFID system consists of a tag (or label), a reader, and an antenna. The tag, which contains a microchip and an antenna, is attached to a product. When the tag passes through the radio field of a reader, it transmits its unique identification data.

Unlike barcodes, RFID tags do not require a direct line of sight to be read. Multiple items can be scanned simultaneously from a distance, making inventory management significantly faster and more accurate. This capability is crucial in the high-stakes environment of pharmaceutical logistics.

Improving Traceability and Inventory Accuracy

The traditional labelling of pharmaceutical products often relies on manual scans and visual checks, which are prone to human error. RFID technology automates this process, providing real-time data on every tagged item.

  • Enhanced Inventory Management: Hospitals and pharmacies can manage their stock with exceptional accuracy. For example, KitCheck®, a system that leverages Avery Dennison RFID technology, has revolutionized how hospitals handle their inventory. Automating the tracking of medication kits significantly reduces time-consuming manual processes, minimises waste from expired drugs, and ensures critical medicines are always available. This level of inventory accuracy is vital for patient safety, preventing stockouts of essential treatments.

  • Streamlined Supply Chains: RFID offers a complete track-and-trace solution from manufacturer to dispenser. Hanmi Pharmaceutical, one of Korea's largest pharmaceutical companies, uses RFID to monitor product movements throughout its supply chain. This helps them comply with government quality management regulations and guards against theft and counterfeiting.

Improving Traceability and Inventory Accuracy
Strengthening Patient Safety

Strengthening Patient Safety

Ultimately, the primary goal of any pharmaceutical supply chain is to ensure patient safety. RFID-enabled pharmaceutical labels contribute to this in several key ways.

  • Combating Counterfeit Drugs: Counterfeit medications pose a significant threat to public health. By assigning a unique digital identity to each product, RFID makes it far more difficult for fraudulent products to enter the legitimate supply chain. Each item can be authenticated at any point, providing a powerful deterrent against counterfeiting.

  • Accurate Dispensing: RFID technology helps ensure that the correct medication and dosage are administered to patients. In a hospital setting, automated systems can verify that the medicine being dispensed matches the patient's health record, reducing the risk of medication errors.

  • Efficient Recalls: In the event of a product recall, RFID allows for rapid and precise identification of affected batches. Instead of manually searching for specific lot numbers, healthcare providers can quickly scan their inventory to locate and isolate the recalled products, preventing them from reaching patients. Becton, Dickinson and Company (BD) is pioneering the use of digital IDs for pre-fillable syringes, in collaboration with Avery Dennison, recognising the growing importance of reliable drug batch segregation as the industry moves towards platform-based products.

The Future of Pharmaceutical Labelling

The integration of RFID into pharmaceutical packaging and labelling is a significant step forward for the industry. It provides the end-to-end visibility needed to build a more secure, efficient, and reliable supply chain. As technology continues to evolve, these solutions will play an even greater role in safeguarding patient health.

By embracing intelligent labelling, pharmaceutical companies can enhance pharma traceability, improve operational efficiency, and, most importantly, deliver on their commitment to patient safety.