february 20, 2007 michael lipton director solution ... · ©sap ag 2007, 1 february 20, 2007...
TRANSCRIPT
© SAP AG 2007, 1
February 20, 2007
Michael LiptonDirector Solution Management RFID / SerializationLife Sciences
Pedigree, RFID, and Business Value: The SAP Comprehensive Roadmap for Serialization in the Life Sciences
Drug track and trace overview
Key issues and pain points in pharmaceuticals
SAP solution overview and roadmap
Benefit areas, KPIs, and benchmarking
Customer examples
© SAP AG 2007, 3
Patient Safety
Increasing Operating Costs
Downward Margin Pressure
Reduced Operating Efficiency
Government Regulations Government Regulations
Pharmaceutical Industry OverviewStandards ActivitiesStandards Activities
• Cost Pressure (esp. Generics)• Supply Chain and Reverse Logistics Opportunity• Complex Multi-step Supply Chain
• Cost Pressure (esp. Generics)• Supply Chain and Reverse Logistics Opportunity• Complex Multi-step Supply Chain
Safe and Secure Supply ChainSafe and Secure Supply Chain
Recalls
Counterfeits
Inventory Turnover
0.00
0.50
1.00
1.50
2.00
2.50
3.00
3.50
4.00
JOHNSON &
JOHNSON
BRISTO
L MYERS SQUIBB C
OMERCK &
CO IN
C
WYETH
GLAXO
NOVARTIS
SANOFIASTR
AZENECA
ROCHEPFIZER IN
C
20042003
* Calculated from data in each company’s 2003 & 2004 Annual Reports
*Inventory Turnover
0.00
0.50
1.00
1.50
2.00
2.50
3.00
3.50
4.00
JOHNSON &
JOHNSON
BRISTO
L MYERS SQUIBB C
OMERCK &
CO IN
C
WYETH
GLAXO
NOVARTIS
SANOFIASTR
AZENECA
ROCHEPFIZER IN
C
20042003
* Calculated from data in each company’s 2003 & 2004 Annual Reports
*
Inventory
Diversions
Drug track and trace overview
Key issues and pain points in pharmaceuticals
SAP solution overview and roadmap
Benefit areas, KPIs, and benchmarking
Customer examples
© SAP AG 2007, 5
Best Practices – Safe and Secure Supply Chain
© SAP AG 2007, 6
Serialized Track/Trace
MfgMfg
PackingPacking Factory stock
Factory stock
DistributionDistribution
Distr. CenterDistr. Center
InIn StockStock PickPick OutOut
WholesalerWholesaler
Distr. CenterDistr. Center
InIn StockStock PickPick OutOut
Pharmacy/ Hospital
Pharmacy/ Hospital
Shipping
Shipping
RefillStockRefillStock
Shipping
* * * *
* * *
* Places where trace data gets recorded
MfgMfg
PackingPacking Factory stock
Factory stock
DistributionDistribution
Distr. CenterDistr. Center
InIn StockStock PickPick OutOut
Distr. CenterDistr. Center
InIn StockStock PickPick OutOut
WholesalerWholesaler
Distr. CenterDistr. Center
InIn StockStock PickPick OutOut
Distr. CenterDistr. Center
InIn StockStock PickPick OutOut
Pharmacy/ Hospital
Pharmacy/ Hospital
Shipping
Shipping
RefillStockRefillStock
Shipping
* * * *
* * *
* Places where trace data gets recorded
RFID and/ or barcode
Sequential numbers (like license plate) EPC/ EAN coding schemePurpose: authentication & logistics use
Shipping cartonFolding boxBottle
+
RFID and/ or barcode
Sequential numbers (like license plate) EPC/ EAN coding schemePurpose: authentication & logistics use
Shipping cartonFolding boxBottle
+
© SAP AG 2007, 7
MAJOR WHOLESALER
SECONDARY
WHOLESALER
DRUG MANUFACTURER
RETAIL PHARMACY
Is Chain of Custody Intact? Pedigree
© SAP AG 2007, 8
Product Authentication Techniques
EPC
✔ EPC with Tag ID
01.000DF3E.0043F.000324FG
01.000D34.00FKD.000234DCKPallet
Hierarchy
F43GLVSD335324FL4234GERF33 EPC with SecurityMarking
F43GLVSD335324FL4234GERF33
Drug track and trace overview
Key issues and pain points in pharmaceuticals
SAP solution overview and roadmap
Benefit areas, KPIs, and benchmarking
Customer examples
“This presentation is a preliminary version and not subject to your license agreement or any other agreement with SAP. This document contains only intended strategies, developments, and functionalities of the SAP® product and is not intended to be binding upon SAP to any particular course of business, product strategy, and/or development. Please note that this document is subject to change and may be changed by SAP at any time without notice.
SAP assumes no responsibility for errors or omissions in this document.”
© SAP AG 2007, 10
SAP’s Pharmaceuticals Solution Map 2006
Suppliers, Partners, & Regulatory Agencies
Customers, Channels, & Regulatory Agencies
R&D Operations Distribution Sales & Marketing Service
Time to Market R&D Administration
Pharmaceutical DevelopmentClinical Trial Management
Clinical Trial Supply Management
Product Quality Procure to Pay
Compliant Manufacturing Enterprise LIMS
Equipment Maintenance
Time to Value Supply Chain Planning / Execution
Contract Management Order to Cash
Marketing Sales Operations & Performance Analytics
Field Sales
Product Safety Medical Inquiries
Complaint Management Incidence Reporting & CAPA
Enterprise Management & Support Analytics Financials
Human Capital Management Corporate Service
Compliance Tools and Validation Services
Regulatory Submission
Drug Discovery
Drug Tracking and Tracing
© SAP AG 2005, Value Assessment for RFID
RFID Tags RFID Readers
Auto-ID Infrastructure
Exchange Infrastructure
EnterpriseApplications
AII
AII
AII
DeviceManagement
Read and write data/ transmit data to system
• Execute transactions
• Decision support
• Enterprise EPCIS
Routes business data to applications
Stores and translates raw EPC data to business data
Manages multiple readers and standardizes data
Transmit and hold data using radio waves
Function
SAP OfferingPartner Offering
XIXI
Device
Controller
Integration and scalability in compliance with international standards of EPCglobal are the key success factors of the SAP RFID solution landscape
SAP EM
SAP RFID Solution
SAP OER
© SAP AG 2007, 12
Enterprise-Wide Deployments
DATA EXCHANGE
TRADINGPARTNERS
SAP Object Event Repository (OER)
AUTO-ID RepositoryEvent Management Analytics
Security Services
AUTO-ID RepositoryEvent Management Analytics
Security Services
QUERY INTERFACEQUERY INTERFACE
CAPTURE INTERFACECAPTURE INTERFACE
Product Tracking
&Authentication
e-ProofOf
Delivery
PromotionManagement
RecallManagement …
Platform
Applications
© SAP AG 2007, 13
SAP Auto-ID Solutions Mapped to EPCglobal
EPCIS Capture Interface
EPCISRepository
Filtering & Collection (ALE) Interface
EPCIS Capturing Application
Reader Protocol
Filtering & Collection (“RFID Middleware”)
EPCIS Query Interface
EPCIS Access ing Application
Tag Protocol (UHF Gen 2, Class 0, Class 1)
RFID Reader
RFID Tag
Reader Management
Interface
Reader Management
EPCIS Accessing Application
“Pull”or “Push”mode
“Pull” or “Push”mode
Partner EPCglobal SubscriberEPCglobal Subscriber
Local ONS
ONS Interface
EPCglobal Core Services
ONS Root
EPCIS Discovery
(TBD)
Subscriber Authentication
(TBD)
Manager Number
Assignment
(offline service)ONS I’face(TBD)(TBD)
Optional bypass for real-time
“push”
EPCIS Capture Interface
EPCISRepository
Filtering & Collection (ALE) Interface
EPCIS Capturing Application
Reader Protocol
Filtering & Collection (“RFID Middleware”)
EPCIS Query Interface
EPCIS Access ing Application
Tag Protocol (UHF Gen 2, Class 0, Class 1)
RFID Reader
RFID Tag
Reader Management
Interface
Reader Management
EPCIS Accessing Application
“Pull”or “Push”mode
“Pull” or “Push”mode
Partner EPCglobal SubscriberEPCglobal Subscriber
Local ONS
ONS Interface
EPCglobal Core Services
ONS Root
EPCIS Discovery
(TBD)
Subscriber Authentication
(TBD)
Manager Number
Assignment
(offline service)ONS I’face(TBD)(TBD)
Optional bypass for real-time
“push”
AIIAII
DeviceControllerDevice
Controller
EnterpriseAuto-ID
Repository
XIXI
SAP OIS
PTA …ERP
SAP OER
Object Event
Repository
© SAP AG 2007, 14
SAP Auto-ID Infrastructure Product Profile
Maintain EPC number ranges locally in SAP Auto-ID Infrastructure (AII)Configure EPC encoding according to current and emerging standards
EPC Number Ranges
Communication directly with RFID devicesCommunication with major device controllersCertified interface and extensive partner eco-system
Device Interface
Integrate deployment on SAP application systemDeployable with integration to non-SAP back-endDeployable standalone
Deployment
Business Monitoring and Reporting Stock situation at different locationsMovements across/within locationsDwell time/cycle time Current status of tracked objects
Technical Monitoring and ReportingRead/write rate quality reports
BW extractors from SAP AII
Reporting
Import master data for integrated scenario Maintain product, location, and business master data locally forstandalone deployment
Master Data
Has mobile/desktop UIOffers enhanced execution guidance in both mobile and desktop UI
User Interface (UI)
Write an Electronic Product Code (EPC) on each individual tagWrite EPCs in batch mode using an RFID label printerSupport multiple-tag commissioning modes, multiple hierarchies
Tag Commissioning
© SAP AG 2007, 15
SAP Event Management (EM)
Notify
Alerts
Monitor
Supply chain object
event 2 event 4
actual events
expected events
event 3
event 1
event 2event 1
Learn
Partner Performance
Measure
Control
Adjust
Collaborate
Simulate
Plan/Schedule
EventEventManagementManagement
© SAP AG 2007, 16
Pre-Configured Business Processes
SAP RFIDPlatform to provide business context
Rules, activities, event handlers, data management, integration, and so on
Gateway to SAP applications
© SAP AG 2007, 17
Manufacturing and Packaging Process
Electronic Pedigree
PartnerE-Pedigree
PartnerE-Pedigree Rx ASNs
Product / Lot Data
Collect Tag Reads(Commission if writing)
Build Item/Case/Pallet Hierarchy **
CertifiedInterface
Electronic Pedigree
PartnerE-Pedigree
PartnerE-Pedigree Rx ASNs
Product / Lot Data
Collect Tag Reads(Commission if writing)
Build Item/Case/Pallet Hierarchy **
CertifiedInterface
Object EventRepository
© SAP AG 2007, 18
Distribution and Logistics Process
Certified Interface
PartnerE-Pedigree
PartnerE-Pedigree
PartnerE-Pedigree
PartnerE-Pedigree
Electronic Pedigree
Rx ASNs
Electronic Pedigree
Rx ASNs
Certified Interface
Goods Receipt Delivery InfoGoods Issue.
Receive against ASN
Build OutboundItem/Case /PalletHierarchy **
Certified Interface
PartnerE-Pedigree
PartnerE-Pedigree
PartnerE-Pedigree
PartnerE-Pedigree
Electronic Pedigree
Rx ASNs
Electronic Pedigree
Rx ASNs
Electronic Pedigree
Rx ASNs
Certified Interface
Goods Receipt Delivery InfoGoods Issue.
Receive against ASN
Build OutboundItem/Case /PalletHierarchy **
Object EventRepository
© SAP AG 2007, 19
RFID-Enabled Outbound Processing
© SAP AG 2007, 20
Enterprise-Wide Deployments
DATA EXCHANGE
TRADINGPARTNERS
SAP Object Event Repository (OER)
AUTO-ID RepositoryEvent Management Analytics
Security Services
AUTO-ID RepositoryEvent Management Analytics
Security Services
QUERY INTERFACEQUERY INTERFACE
CAPTURE INTERFACECAPTURE INTERFACE
Product Tracking
&Authentication
e-ProofOf
Delivery
PromotionManagement
RecallManagement …
Platform
Applications
© SAP AG 2007, 21
Repository
Pkg. Hierarchy(Authentication Level Number)
CustomerShip-to(Tracking)
… n
1
…Delivery # (Tracking)
Lot/ Batch
Product/ Material(Tracking/ Authentication)
EPC
2. Tracking
3. Authentication
Reports
ERP
RFID Devices
External SystemsC
aptu
re S
ervi
ces Q
uery Services
SAP OER
Event Management
1. Capture
PTA Concept
© SAP AG 2007, 22
Tracking Services EPC Tracking
Current status/location of EPC List of statuses/locations of EPC within Enterprise
Delivery TrackingList of statuses/locations of EPCs associated with a delivery
Attribute TrackingSelection of deliveries and associated EPCs by:
Order NumberDateCustomerStatusLocationBatch (Lot)Others
Event ManagementTrigger alerts based on exceptions associated with under/over delivery, or supply chain movements that are early/late/not expected/missing
Product
Party Transaction
DRUG MANUFACTURER DISTRIBUTION CENTER
© SAP AG 2007, 23
Authentication
[EPC N um bers ]
[ Tag ID – EPC com bination]
[ EPC – Security M arking com bination]
[ Case-Item association]
[ Pallet - Case-Item association]
B asic Au thentication(T iered /Leve l)
[EPC N um bers ]
[ Tag ID – EPC com bination]
[ EPC – Security M arking com bination]
[ Case-Item association]
[ Pallet - Case-Item association]
B asic Au thentication(T iered /Leve l)
EPC AuthenticationAuthentication of one or more EPCs, based on EPC number
Extended AuthenticationAuthentication of one or more EPCs based on EPC, location of itemAuthentication based on EPC, Alternative ID (Tag ID, Holospot®, and so on)
LoggingAll queries logged
AlertingAlert if repeated queries for same item, and so on
© SAP AG 2007, 24
Enterprise-Wide Deployments
DATA EXCHANGE
TRADINGPARTNERS
SAP Object Event Repository (OER)
AUTO-ID RepositoryEvent Management Analytics
Security Services
AUTO-ID RepositoryEvent Management Analytics
Security Services
QUERY INTERFACEQUERY INTERFACE
CAPTURE INTERFACECAPTURE INTERFACE
Product Tracking
&Authentication
e-ProofOf
Delivery
PromotionManagement
RecallManagement …
Platform
Applications
© SAP AG 2007, 25
RFID-Enabled Electronic Proof of Delivery
© SAP AG 2007, 26
Future Serialization Opportunities
Identify and communicate Visibility into magnitude and scope
Problem containment Red-flag and contain affected product at various nodes of the supply network in real-timeAutomatically halt all affected business transactions
ReclaimTargeted reclaiming only affected product – based on EPC serial number traceability, delivery history, and e-Pedigree
Receive/Authenticate
Disposal/Destruction
Assess Cost analysis, credit /debit management
Identify and TraceAssociation of every product instance (EPC) to shipments, invoices, and chargebacks ensures traceability between payments and physical goods
Improved transaction history will significantly improve chargeback/rebate accuracy, reducing errors and manual validations
ValidateCheck against contract dataDouble chargeback and rebate payments due to illegal diversions can be detected automatically by validating sales history
AnalyzeCustomer / contract profitability analysis
Recall Management Chargeback Management
© SAP AG 2007, 27
Develop OptimizeDeploy
SAP Product Innovation Lifecycle
03/2005 Q2/200610/200506/2004
Release to customer:SAP AII 2.0
Release to customer:
SAP AII 2.1
SAP AII Feature Pack for
4.0
11/2004
Release to customer:
SAP AII 4.0
Q4/2006
Release to CustomerSAP AII
5.1
Release to customer:
SAP AII Feature
Pack
Q2/2007
Release to CustomerSAP AII
X.X
???
RFID Outbound
Returnables (RTI)BI ReportingEvent MgmtBar Codes
Object Event Repository (OER)EPC Global Data ExchangeProduct Tracking and Authentication (PTA) UID Enablement, Kanban, RFID-enabled EWMESA Enablement of AII
Standalone RFIDPreconfigured toolkit
Reporting
RFID Inbound
SAP RFID Solution Focus
e-Pedigree InterfaceESA Subset
SAP RFID Release Schedule
© SAP AG 2007, 28
Zebra
HP
Symbol
Matrix
Acsis
Systech
Globeranger
Infineon
Nokia – under AII certification process
SupplyScape
Cognizant
Strategic Partners
Printronix
LXE
Alien
Peak
Reva
Sun
Intel
Others in process
Mobile
Device Mgmt.
(AII Certified)
Hardware
Printers
e-Pedigree
(Powered by SAP NetWeaver®)
Category
PRODUCTS/SOLUTION
SAP RFIDTechnology
AIIAuto-ID
Infrastructure
Device Mgmt Partners
Device Mgmt Partners
Enterprise EPCIS
Event Manager
XIExchange
Infrastructure
PedigreePartners
PedigreePartners
ERP andBusiness Information
SAP RFIDTechnology
AIIAuto-ID
Infrastructure
Device Mgmt Partners
Device Mgmt Partners
Enterprise EPCIS
Event Manager
XIExchange
Infrastructure
PedigreePartners
PedigreePartners
ERP andBusiness Information
SAP RFID Partner Strategy for Life Sciences
Drug track and trace overview
Key issues and pain points in pharmaceuticals
SAP solution overview and roadmap
Benefit areas, KPIs, and benchmarking
Customer examples
Wrap-up
© SAP AG 2007, 30
200+ RFID Companies; 17+ IndustriesNumber of RFID Customers by Industry [150]
CPG23%
Chemica11%
Lifesciences10%Transportation
7%Hi-Tech
6%
Auto5%
A&D5%
PS5%
Utilities5%
O&G5%
Industrial4%
Services3%
Retail3%
Other3%
Mining1%
Media1%
Mill Products1%
© SAP AG 2007, 31
Abbott Labs: Case/Pallet Tagging
AII
ERP system -R/3
Warehouse Management
System
Device Mgmt Partner - ACSIS Device Controller
Update
XI
Pick/Pack
Delivery
Update pallet hierarchy and
delivery
ASN
Delivery
Associate pre-encoded Tags (Case/Pallet) with Delivery
AII
ERP system -R/3
Warehouse Management
System
Device Mgmt Partner - ACSIS Device Controller
UpdateUpdate
XIXI
Pick/PackPick/Pack
DeliveryDelivery
Update pallet hierarchy and
delivery
Update pallet hierarchy and
delivery
ASNASN
DeliveryDelivery
Associate pre-encoded Tags (Case/Pallet) with DeliveryAssociate pre-encoded Tags (Case/Pallet) with Delivery
© SAP AG 2007, 32
Purdue Pharma L.P.
Company and project overview:Manufactures class two narcotics; is a key Wal-Mart pharmaceutical supplier
Is world’s first company to tag at item level
Has improved tracking of goods within the facility for controlled substances
Complies with Wal-Mart while achieving internal process improvements
Uses SAP RFID technology to meet these requirements
Business benefitsTactical: Complies with Wal-Mart mandate:
Unit-level tagging by mid-year 2004Case-level tagging by the end of 2006
Strategic: Generates business benefits:Lead the pedigree tracking requirementsDrive cost out of the supply chainIncrease supply chain responsivenessEnsure legislative compliance to the FDA, DEA, and so on
“We selected SAP’s RFID solution not only to achieve this compliance but also to help us generate value for our business in the future. By being able to track our products automatically, we not only fulfill Wal-Mart’s mandate, we also position ourselves to meet future requirements from the FDA & DEA.”
Chuck Nardi, Vice President
Company and project overview:Manufactures class two narcotics; is a key Wal-Mart pharmaceutical supplier
Is world’s first company to tag at item level
Has improved tracking of goods within the facility for controlled substances
Complies with Wal-Mart while achieving internal process improvements
Uses SAP RFID technology to meet these requirements
Business benefitsTactical: Complies with Wal-Mart mandate:
Unit-level tagging by mid-year 2004Case-level tagging by the end of 2006
Strategic: Generates business benefits:Lead the pedigree tracking requirementsDrive cost out of the supply chainIncrease supply chain responsivenessEnsure legislative compliance to the FDA, DEA, and so on
“We selected SAP’s RFID solution not only to achieve this compliance but also to help us generate value for our business in the future. By being able to track our products automatically, we not only fulfill Wal-Mart’s mandate, we also position ourselves to meet future requirements from the FDA & DEA.”
Chuck Nardi, Vice President
© SAP AG 2007, 33
Update
Update
Update
Update
Retrieve
HTTPS
HTTPS
RFID Tag Data FlowE- Pedigree Data Flow
ePedigreePartnerXML API
XI
Retrieve
E- Pedigree
Partner System -
Supply Scape
Internet• Delivery #• Batch #• Sales Info.• Esp. Date• NDC Info.• Cust ., P.O. #• Etc.
R/3
• EPC #• Batch #• Del. #• Etc.
SAPEM
• EPC #• Batch #
Pack
• EPC #• Delivery #
OutVault
InVault
ePedigreePartner
XML API
AII
HTTPS
HTTPS
RFID Tag Data FlowE- Pedigree Data Flow
Partner
XIXIe-Pedigree
Partner System -
Supply Scape
InternetInternet• Delivery #• Batch #• Sales Info.• Esp. Date• NDC Info.• ., P.O. #•
R/3
• Delivery #• Batch #• Sales Info.• Esp. Date• NDC Info.• ., P.O. #•
R/3R/3
• EPC #• Batch #• Del. #•
SAPEM
• EPC #• Batch #• Del. #•
SAPRepository
• EPC #•
Pack
• EPC #•
Pack
• EPC #•
OutVault
• EPC #•
OutVault
InVaultInVault
Partner
AIIAII
Purdue Pharmaceuticals: Item-Level Tagging
© SAP AG 2007, 34
Warehouse/ Distribution Process(PharmOps Warehouse/ Turn-Table / CPO)Packaging Line
Reader
PLC
Device control/ Data Acquisition System Device control
…
…
Camera
PLC Reader … Printer
Serialized informationSerialized information
Managing Managing serialized serialized
informationinformation, local data , local data repositoryrepository
Global Data repository, Global Data repository, Reporting & Alerts (mid Reporting & Alerts (mid ’’07)07)
SAPR/3
E-pedigree
EE--pedigreepedigree
•XI
EnterpriseRepository, PTA
Source : Novartis Pharma AG – SAP Life Sciences Council, 21 April 2006 - Marc Bechet
Warehouse/ Distribution Process(PharmOps Warehouse/ Turn-Table / CPO)Packaging Line
Reader
PLC
Device control/ Data Acquisition System Device control
…
…
Camera
PLC Reader … Printer
Serialized informationSerialized information
Managing Managing serialized serialized
informationinformation, local data , local data repositoryrepository
Global Data repository, Global Data repository, Reporting & Alerts (mid Reporting & Alerts (mid ’’07)07)
SAPR/3
E-pedigree
EE--pedigreepedigree
•XI
EnterpriseRepository, PTAEnterpriseRepository, PTA
Source : Novartis Pharma AG – SAP Life Sciences Council, 21 April 2006 - Marc Bechet
Novartis Pharmaceuticals: Item-Level Tagging
© SAP AG 2007, 35
Jena University Hospital
Company and Project Overview:The Jena University Hospital consists of 26 different facilities. It has 4,000 employees and treats 250,000 patients annually. The hospital selected SAP R/3 and AII as part of an innovative comprehensive solution to prescribing, dispensing, transporting, and administering medications to its patients.
Business Challenge
Every 20th patient in a hospital suffers from an Adverse Drug Event (ADE). More than 55% of these ADEs are avoidable.
The average cost of an ADE is 3000 €.In Germany, with 16.7 million patients treated every year, the potential savings from avoiding ADEs is 1.4 billion €/year.
RFID Business ProcessElectronic order entry of prescriptionsTagging of medications in pharmacy and dispensed in unidose quantitiesTracking of medications transported from pharmacy to intensive care and individual patientsRFID bracelets worn by patientsInstant access to detailed patient informationReal-time matching of medications to patientsRecording of medication in patient files
© SAP AG 2007, 36
Prescription
Commissioning: Pick and verify medication and pack into patient boxes
Load Container: Exit pharmacy to ICU * via automated vehicle
@ ICU: Register container arrival
Empty content of patient box at clinic bed
- Scan tags of health personnel
- Scan patient’s wristband- Scan and record medication- Real-time validation of match
Verify observations
* ICU = Intensive Care Unit
Jena University Hospital: Benefits
© SAP AG 2007, 37
Biomet Medical Devices
Company Overview:Headquartered in Warsaw, Ind., Biomet Inc. designs, manufactures, and markets implants for musculoskeletal medical specialists. With net sales of more than US$1.9B in 2005, Biomet is the world’s fourth-largest company in its industry. Netherlands-based Biomet Europe has 1,800 employees and revenues of 500 million euros.
Business ChallengeBiomet’s inventory consists of a large variety of high-value items
• Items are assembled into loaner sets (kits) • Only a few items are used during
an operation • Partial kits are returned and
visually inspected • Missing items are invoiced and
replenishedBiomet was looking to improve accuracy and reduce the manual effort involved in this process
Business Process for Loaner Kits Goods Issue: Kit scanned by the RFID Tunnel, all items countedGoods Receipt: Kit scanned by RFID Tunnel, remaining items countedDifference: Invoiced to customer and replenishedMismatches: Items from other kits used during surgery are resolved quickly
© SAP AG 2007, 38
RFID-Enabled Business Processes at Biomet
Create Serialized Loaner Sets⇒Tagged Serialized Implant Parts Goods Issue
Records Specific Serial IDs
Consumption of Implants
ReturnedLoaner Sets⇒ Including
Unused ImplantsRegister Consumed
Implant Parts
Invoice Basedon Consumed Implants
Refill Loaner Sets
Drug track and trace overview
Key issues and pain points in pharmaceuticals
SAP solution overview and roadmap
Benefit areas, KPIs, and benchmarking
Customer examples
© SAP AG 2007, 40
Time
Retail and Regulatory Compliance• Regulatory Case-Level Track/Trace: e-Pedigree; RxASN• Retail CII Item-Level Track/Trace • Retail Shrinkage and Track/Trace
Value-Driven Business ScenariosContracts and Chargebacks
Supply Chain Management• Product Recall management• Product Authentication• End-to-end Track/Trace
• Electronic Proof of Delivery• Supply Chain Analytics
Valu
e Extended Healthcare Applications• Medical Instrument Track/Trace/Invoice• Hospital Medication Administration• Clinical Trial Management
RFID-Enabled Applications are Evolving Quickly from Compliance to Innovative Value Add!
© SAP AG 2007, 41
RFID-Enablement Value Ladder
© SAP AG 2007, 43
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Copyright 2007 SAP AG. All Rights Reserved