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Blockchain Improving Sustainability & Effectiveness of Pharmaceutical Supply Chain

If there is one thing that the global pharma business has learned from the COVID-19 pandemic, it is that an efficient, secure, and resilient supply chain is just as critical as manufacturing, and downstream, and upstream operations. Slight delays and errors in the pharma and biomedical industries choke the entire system. So for this weeks blog the team at Servblock decided to take a deeper look.

Pharma industry's rising demands require an equally resilient and secure infrastructure that is open, transparent and sustainable. In this backdrop, blockchain has arisen as a solution that has captivated the pharmaceutical industry with its nature and operating procedures.

Blockchain is now well-known for its use in the financial world for cryptocurrencies such as bitcoin. It is, nevertheless, as diverse as one may imagine. It has demonstrated its value to the healthcare business by being able to deal with global supply chain issues tactfully while being safe despite the rising vulnerabilities of traditional channels. This has given rise to a whole new concept of sustainable supply chain management (SSCM), which is based on the three P (3P):

· Models of the planet (sustainability)

· People (corporate social responsibility)

· Profit (effectiveness)

Here, we are going to dissect the sustainability section in detail.

Sustainability

Developing a robust model of the pharmaceutical supply chain is not only crucial but has also become critical in light of the growing demand for an effective system to track, trace, and promote transparency. These characteristics are inherent in blockchains, implying that a blockchain can offer the services as a one-stop solution rather than relying on many channels to ensure sustainability.

Blockchain is diversified as part of the fourth industrial revolution, or Industry 4.0, with all the ideals required for a sustainable and transparent supply chain. At the same time, it provides partners with traceability, validity, and authenticity of a shipments and data, guaranteeing that data is safeguarded against one-sided modifications.

Integration of Partners

Unlike many other businesses, the pharmaceutical supply chain is complex, multi-node, and highly regulated. The partners are not only manufacturers, hospitals, or end users but the regulators, such as the FDA and other agencies that demand an up-to-date record of transactions, ingredient movement, and real-time monitoring of supply issues. This obviously offers a barrier to the transparency system, making it a tricky process. In such a scenario, the only way to get safe, secure, and scalable (SSS) data is through disruptive blockchain technology, which provides the solution to all challenges.

This is accomplished by providing partners with an immutable key that allows them to trace and track the products at any given time at a node. In addition, because the key is shared among partners, the information blocks on the blockchain cannot be changed until all partners agree.

This leads us to our second conclusion and goal for employing blockchain technology: "sustainability." Unlike previous methods of data exchange and feedback in SC, blockchain data is permanent, auditable, long-lasting, and enhances the information. As a result, this sustainable strategy helps to boost partners' trust in the process.

Those in business know that commercial transactions are based on trust, reinforced by the traditional channels. However, there is a gradual shifting away from conventional methods such as banking and assurance in the current scenarios. But on the other hand, blockchain is automated, real-time, and eliminates the trust gap typically associated with the supply chain system.

Finally, with the emergence of the internet and blockchain technologies, the pharmaceutical supply chain is transforming. Blockchain technology now allows for more advanced technology applications than merely a financial substitute for existing channels. It is about time for more businesses throughout the world to join the changing landscape with greater transparency and sustainability.

References:

Shaker, A., Paul, R., and Shaghayegh, M., (2020), “An Exploration of the Role of Blockchain in The Sustainability and Effectiveness of The Pharmaceutical Supply Chain” Journal of Supply Chain and Customer Relationship Management, Vol. 2020 (2020), Article ID

562376. https://ibimapublishing.com/articles/JSCCRM/2020/562376/562376...pdf

Sahoo S, Kumar S, Sivarajah U, et al (2022) Blockchain for Sustainable Supply Chain Management: Trends and Ways Forward. Journal of Electronic Commerce Research. Accepted for publication. https://bradscholars.brad.ac.uk/handle/10454/18950

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