Inventory management and RFID in healthcare: case study and an empirical look at the potential of the online pharmacy industry

RFID technologies in the healthcare industry might be the solution to the changing challenges the industry has had to face recently. Pharmaceutical companies have to deal with international drug requirements and regulations, and a complex network of distribution channels. University of Pittsburgh Medical Center (UPMC) (established 1893) and Allegheny Health Network (AHN) (established 1999) have significantly evolved in their supply chain operations and inventory management. This has left the opportunity for them to start a system, and have it advance over time. It started on paper, and as the Internet was created, there were easier methods for inventory control. With new processes come new obstacles, such as supply chain problems and inventory management issues. Supply chain tactics used by both hospitals and provide ways to alleviate some inventory management issues are highlighted. A comparison of the systems as well as an empirical study should provide much needed insights for improvements.