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The Arizona Health Interoperability Council
Pharmacy & Supply

Pharmaceutical Supply-Chain Integration

Every prescription draws on a physical drug that traveled through a manufacturer, a wholesaler and a dispenser. The Drug Supply Chain Security Act now requires that journey to be serialized and traceable. This explainer covers DSCSA track-and-trace, package-level serialization, the GS1 identifiers behind it, and how dispensing signals can connect to replenishment.

What DSCSA requires

An interoperable, electronic, unit-level trace

The Drug Supply Chain Security Act (DSCSA), enacted in 2013, set a decade-long path toward a fully electronic, interoperable system for tracing prescription drugs through the U.S. supply chain. Its final phase — sometimes called enhanced drug distribution security, or serialized item-level traceability — began on November 27, 2023. Under it, trading partners are expected to exchange serialized transaction information electronically and be able to trace product back toward its origin at the individual-package level.

In practice that means manufacturers serialize each saleable package, distributors and dispensers verify those identifiers, and suspect or returned product can be checked against the manufacturer before it re-enters the chain. AzHeC explains the framework as a neutral convener — the standards are public, and the same trace logic applies to every participant.

Process

How a serialized package is built and traced

DSCSA leans on GS1 standards so that a product's identity is machine-readable and consistent across trading partners.

01

1 · Assign a product identifier

Each package carries a product identifier built from a GS1 Global Trade Item Number (GTIN) that encodes the National Drug Code, plus a unique serial number, lot number and expiration date.

02

2 · Encode it in a 2D barcode

Those data elements are marked on the smallest saleable package in a GS1 DataMatrix 2D barcode, so any partner can scan and read the identifier the same way.

03

3 · Exchange transaction data

As the product changes ownership, trading partners exchange serialized transaction information electronically — commonly using the EPCIS event standard — recording who held it and when.

04

4 · Verify suspect and returned product

When product is returned or flagged as suspect, the holder can verify its product identifier with the manufacturer before redistributing it, keeping counterfeit or diverted stock out of the chain.

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5 · Trace back toward origin

Because each step is serialized and linked, a package can be traced back through its chain of ownership when an investigation or recall requires it.

Fig.Closing the loop
Closing the loop

Connecting prescribing signals to replenishment

The same identifiers that make a drug traceable also make it countable. When dispensing systems record what was given out using consistent GS1 identifiers, that consumption data can inform replenishment — so par levels reflect real demand rather than guesswork, and reordering can be more automatic and less error-prone. The serialization layer DSCSA mandates is therefore not only a compliance and anti-counterfeiting tool; it is the shared identity layer that lets the clinical signal (a prescription filled) and the supply signal (a package consumed) describe the same physical thing.

By the numbersThe Council at a glance
2013
DSCSA enacted, starting a ten-year path to interoperable trace
Nov 2023
Serialized item-level traceability phase began
GTIN
GS1 identifier that encodes the NDC in the product identifier
2D DataMatrix
Barcode carrying serial, lot and expiration on each package
Reference

Frequently asked questions

01What is serialization under DSCSA?

Marking each saleable package with a product identifier — a GTIN-based identifier plus a unique serial number, lot number and expiration date — usually in a GS1 DataMatrix 2D barcode, so individual packages can be identified and traced.

02How does GS1 relate to DSCSA?

GS1 provides the identification standards DSCSA relies on. The GTIN encodes the National Drug Code in the product identifier, and GS1 barcodes and the EPCIS event standard support the interoperable, electronic exchange of trace data between trading partners.

03Does AzHeC help vendors sell serialization software?

No. AzHeC is vendor-neutral and authority-phase. We explain the law and the underlying public standards so stakeholders understand their obligations; we do not endorse or sell any compliance product.

ARIZONA HEALTH INTEROPERABILITY· COUNCIL ·
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See where the supply chain meets the bedside

Serialized identifiers only deliver their full value when they connect to dispensing, inventory and the clinical record. The council convenes the stakeholders working to make that happen across Arizona.