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Cephalon's RFID pilot

Cephalon Inc. is in Phase 3 of an RFID pilot program that will involve live testing at its manufacturing facility in Salt Lake City, UT. Based out of Frazer, PA, Cephalon is a mid-sized biopharmaceutical company with $1.8 billion in sales last year. Its products include Actiq, Provigil, as well as Fentora, which is the product that is the focus of the current RFID pilot. Cephalon started its RFID pilot program in 2004.

Brian Brown, senior manager for logistics and analytics, says Cephalon became involved in RFID because it recognized the value of learning the technology and finding good partners. “We positioned ourselves so that if ever RFID were mandated, say by a large retail chain or by the Food and Drug Administration, we wouldn’t be scrambling to find good partners. We’ve had steady progression of growth in our RFID pilot.”

Phase 1 used RFID at the case and pallet level to capture the movements of a placebo product and prototype packaging from a 3PL (third-party logistics) distribution center and was completed in December 2005.

Phase 2 consisted of shipping tagged product to an RFID-enabled wholesaler. That phase was completed in July 2006.

Cephalon is currently implementing Phase 3 of the pilot program, which tests RFID tagged cases and pallets in a manufacturing environment. In December it began plans for Phase 3.

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