technologyreview
the speed
of sound
Drug pedigree laws almost forced the
Harvard Drug Group out of business.
But software and a high-speed voice
system saved the day.
THERE ARE TIMES IN BUSINESS WHEN EXTERnal pressures push a company to the brink, forcing it
to adapt swiftly to changing circumstances in order to
survive.
Pharmaceuticals distributor Harvard Drug Group
faced such a challenge a few years back. In this case, the crisis was precipitated by regulatory requirements. To combat a rising tide of drug tampering and counterfeiting incidents,
both the federal and state governments had begun imposing tighter controls over the pharmaceuticals distribution process. One result was a spate of drug “pedigree” laws—
legislation requiring suppliers, wholesalers, distributors, and/or repackagers to maintain detailed
records documenting each stage of a drug’s journey through the supply chain.
For wholesaler/distributors like Harvard Drug, the pedigree laws brought a new set of
record-keeping burdens. In addition to their own internal records, they would now be
responsible for gathering item-specific information (like drug names and exact lot numbers) on all of the products they handled. They would also be required to certify the accuracy of the pedigrees and the orders they shipped.
That may sound more like an inconvenience than a body blow, but it was a serious concern for Harvard Drug. The company was already under intense pressure to turn orders
around swiftly. Now, it would have to find a way to incorporate an additional, time-consuming step into its fulfillment process. For a time, the company was genuinely worried that
the rigorous pedigree requirements might put it out of business.
Technical difficulties
To understand why Harvard Drug found the prospect so alarming, you need to know a little about its business. The Livonia, Mich.-based company distributes pharmaceuticals, over-the-counter drugs, vitamins, and veterinary medicines to independent pharmacies, small
drug store chains, hospitals, clinics, and veterinary offices. These are customers with high
service expectations. Because of the high cost of drugs, stores and pharmacies tend to keep
very little stock on hand; instead, they rely on their suppliers to ship them products as need-
