IBM’s new system, based on IBM’s WebSphere, uses RFID software and services to automatically capture and track the movement of drugs through the supply chain. RFID tags are embedded on products at the unit, case and pallet level, and authenticate the product from manufacturer to wholesalers to hospitals and pharmacies, said the company.

Each tag contains a unique identifier that can be linked back to descriptive product information such as dosage and strength, lot number, manufacturer and expiration date.

The RFID system promises to help drug makers and distributors improve performance by reducing the cash tied up in inventory, targeting recalls and enabling faster response to market demand, IBM said.