2. INTRODUCTION
In the pharmaceutical industry, the blockchain
based supply chain concept is very exciting and
full of potential to solve many existing
problems. The main function of blockchain
technology is to record transactions and
information safely and transparently through a
decentralized system.
3. When applied in the pharmaceutical supply chain, this
technology can provide a number of advantages
Transparency
and Security
Accurate Product
Tracking:
Efficient
Inventory
Management
Regulatory
Compliance
Product
Authenticity
Collaboration
Between
Stakeholders
4. 1. If applicable, provide a brief description of your business!
I am a student studying pharmacy or medicine. Besides me, there's another older
brother who maintains a neighborhood herbal medicine shop. In my opinion, I aspire to
establish an enterprise focused on developing medications that are both secure and affordable,
allowing consumers to appreciate their benefits.
2. What types of stakeholders are involved in your supply chain?
1. Pharmaceutical Manufacturers
2. Raw Material Suppliers
3. Distribution Center
4. Pharmacies and Drug Stores
5. Regulatory and Supervision Institutions
6. Transportation and Logistics
7. Consumers
3. What are the roles of each stakeholder in the supply chain?
1. Pharmaceutical Manufacturers
Entities responsible for manufacturing and distributing drugs. Their role involves
essential tasks like adding relevant data to the blockchain framework, which covers
aspects like production procedures, quality control measures, and product expiration
dates.
2. Raw Material Suppliers
Vendors offering components and compounds to manufacturers of medicinal goods.
Their involvement in the decentralized network guarantees the provenance and
excellence of crude resources.
3. Distribution Center
These centers coordinate the storage, administration, and shipping of drugs to places
such as drugstores and medical facilities. Information stored on the blockchain could
cover stock management, transport planning, and warehouse operations.
4. Pharmacies and Drug Stores
These businesses represent the last link in the drug distribution chain, offering
medicines to consumers face-to-face. Utilizing blockchain technology allows them to
monitor product quantities, confirm legitimacy, and optimize stock control more
effectively.
5. Regulatory and Supervision Institutions
Government officials and pharmaceutical regulatory organizations can leverage the
power of blockchain to verify adherence to rules, maintain the quality of goods, and
stop fake or illicit products from reaching consumers.
5. 6. Transportation and Logistics
These businesses oversee the transportation of goods via the distribution network. By
employing blockchain, they can exhaustively log and document each stage of the
product evolution.
7. Consumers
Although they are not the primary actors in the supply chain, customers can utilize
blockchain technology to track the origin and history of the medicinal products they
acquire, thus fostering greater confidence and openness.
4. Which stages are included in the supply chain process?
1. Sourcing and Fabrication of Main Resources or raw materials
The blockchain contains information regarding suppliers of essential materials. The
information provided includes origin, quality certificate, and expiration date.
2. Production and Manufacturing
The blockchain receives data about the formulation, quantity and production cycle of
the drug. This helps monitor manufacturing processes and ensures product integrity.
3. Quality Testing
Blockchain receives information regarding product test and inspection results.
Compliance with quality parameters is improved by this measure.
4. Packing and Storage
Within the blockchain, packaging process specifications, which consist of a single
identifier or QR code for tracking and storage recommendations such as temperature
and humidity, are stored.
5. Distribution and Transportation
Blockchain can document every stage of the shipping journey, from manufacturing to
pharmacies and healthcare facilities. Among the details included are itineraries,
estimated delivery times, and monitoring data.
6. Verification of Origin and Authenticity
Customers, drugstores, or merchants can scan quick response (QR) codes or other
proprietary codes found on goods to confirm their legitimacy and place of origin via
the blockchain.
7. Storage at Retailers
Blockchain technology enables the efficient sharing of information regarding
pharmaceutical inventory, sales figures, and stock levels.
8. Usage Tracking and Customer Monitoring
By leveraging blockchain, it becomes possible to effectively monitor customer
medication consumption, resulting in greater treatment plan adherence.
9. Handling Goods Sold Through Reverse Supply Chain
Any returned products or items that are nearing their expiration date can store their
relevant information on the blockchain for easy processing.
10. Regulatory Compliance and Reporting
Blockchain technology enables reliable reporting and regulatory compliance in the
pharmaceutical space.
6. 5. What types of documents and events are exchanged at each stage?
1. Sourcing and Fabrication of Main Resources or raw materials
- Documents: Supplier agreements, certified raw material quality documents,
invoices, and product specifications.
- Events: Acquisition of important resources, transportation from providers,
arrival of raw materials at production sites.
2. Production and Manufacturing
- Documents: Production plans, product recipes, production records, batch
documents.
- Events: Product manufacturing, manufacturing process, quality testing during
production.
3. Quality Testing
- Documents: Lab test results, superior test reports and authentication
certificates.
- Events: Evaluation of raw inventory and finished goods through quality
control.
4. Packing and Storage
- Documents: Packaging specifications, storage instructions, product labels.
- Events: Packaging process, giving unique code or QR code, storage in
warehouse.
5. Distribution and Transportation
- Documents: Selection of critical documents required for effective shipping
operations.
- Events: Goods are transferred between distribution centers before reaching
their final destination.
6. Verification of Origin and Authenticity
- Documents: Insights of puzzle markers found on items, such as QR codes and
other new indicators.
- Event: QR code scanning by customer, product authenticity verification.
7. Storage at Retailers
- Documents: Inventory information, sales, stock updates.
- Events: Sales of products to customers, stock replenishment to drug stores or
pharmacies.
8. Usage Tracking and Customer Monitoring
- Documents: Customer records, treatment plans, dosage monitoring.
- Events: Track customer medication consumption and send medical updates to
doctors.
9. Handling Goods Sold Through Reverse Supply Chain
- Documents: Return notes, reason for return, product condition.
- Event: Retained items are processed, and inventory is restored with returned
commodities.
10. Regulatory Compliance and Reporting
- Documents: A collection of evidence demonstrating compliance with
industry standards.
7. - Events: Monitor compliance with regulatory standards and conduct regular
reviews.
6. In each organization, who can submit, accept, and see the document and event?
For each organization, the obligations associated with sending, receiving, and observing
documents relevant to distinct operational phases might differ based on the
organizational framework and personnel functions.
1. Sourcing and Fabrication of Main Resources or Raw Materials
- Department of Procurement / Sourcing
- Logistics and Transportation Team
- Quality Management and Assurance
2. Production and Manufacturing
- Production Department
- Process Engineering Team
- Manufacturing Team
- Quality and Assurance Department
3. Quality Testing
- Quality Team and Laboratory Testing
- Quality Assurance Department
4. Packing and Storage
- Packing Department
- Logistics and Distribution Team
- Warehouse Management
5. Distribution and Transportation
- Logistics and Distribution Team
- Department of Transport
6. Verification of Origin and Authenticity
- Product Safety Department
- Product Safety and Authenticity Team
7. Storage at Retailer
- Store/Retail Management
- Store Logistics Department
8. Usage Tracking and Customer Monitoring
- Medical and Treatment Team
- Department of Medicine (drugs)
9. Handling Goods Sold Through Reverse Supply Chain
- Team dedicated to return management and processing.
- Return Logistics Department
10. Regulatory Compliance and Reporting
- Compliance Team
- Legal and Compliance Department
8. 7. What are the problems typically encountered at each stage of the supply chain?
1. Sourcing and Fabrication of Main Resources or Raw Materials
- The quality of raw material supply is very important.
- Slow delivery time.
- Ignoring guidelines related to quality verification.
2. Production and Manufacturing
- Production interruption or equipment damage.
- Instability of raw material supply.
- Inefficient production scheduling.
3. Quality Testing
- Products fail do not meet the quality requirements that have been set.
- Test errors or inaccuracies.
- Delayed test results may hinder output.
4. Packing and storage
- Error in the packaging process.
- Danger of loss or damage to the product in transit.
- Maintaining a suitable storage environment (temperature, humidity level) can
prove challenging.
5. Distribution and Transportation
- Delay or damage during delivery.
- Limited visibility into product journey phases.
- The problem of coordinating delivery on time.
6. Verification of Origin and Authenticity
- Potential for counterfeiting or possession of QR codes.
- Ensuring the consistency and trustworthiness of information managed through
blockchain technology.
- Limitations in tracking resources accurately.
7. Storage at Retailers
- Challenges in handling inventory and stock levels.
- Mismatch between demand and supply.
- The difficulty of monitoring current sales.
8. Usage Tracking and Customer Monitoring
- Limited in collecting accurate usage data.
- Concerns around the protection of consumer personal information.
- Integration challenges with multiple data streams.
9. Handling Goods Sold Through Reverse Supply Chain
- Challenges in handling and processing repatriated goods.
- Old product information is processed through our system.
10. Regulatory Compliance and Reporting
- Inconsistent or late submission of reports creates difficulties.
- The complexity of complying with different norms in different regions.
- Limitations in properly verifying compliance.
9. 8. How can these problems be effectively solved using Smart Hub?
1. Sourcing and Fabrication of Main Resources or raw materials
- State-of-the-art Smart Hub technology brings together multiple sources of raw
materials into one integrated system, facilitating instant evaluation of their
accessibility and quality.
- Integration of sensors and monitoring technology allows immediate assessment of
shipment status, empowering fast reaction times.
2. Production and Manufacturing
- Combining data from various stages of pharmaceutical production into Smart
Hub enables better production planning taking into account raw material supply
and production schedules.
3. Quality Testing
- Test data accessible via Smart Hub allows for faster response to test results and
quick actions.
4. Packing and Storage
- With its ability to capture detailed information, Smart Hub enables optimal
product protection throughout the pharmaceutical supply chain.
5. Distribution and Transportation
- Utilizing IoT monitoring technology in Smart Hub enables real-time explanation
of shipments and enables full transparency of data for all parties involved.
6. Verification of Origin and Authenticity
- Smart Hub can store product authenticity data and QR code information on the
blockchain, ensuring that the data cannot be manipulated and providing
confidence to consumers.
7. Storage at Retailers
- The combination of Smart Hub and inventory management platform can facilitate
accurate sales tracking and management.
8. Usage Tracking and Customer Monitoring
- Smart Hub can provide privacy and security options for consumers by disclosing
anonymous or encrypted data collection.
9. Handling Goods Sold Through Reverse Supply Chain
- Utilization of Smart Hub enables efficient management of returned or returned
products, leading to increased efficiency in processing.
10. Regulatory Compliance and Reporting
- Information accumulated through Smart Hub facilitates the creation of accurate
and legally binding reports according to area-specific rules.
9. What value will be generated at each stage after implementing Smart Hub in your supply
chain? Please provide supporting evidence, facts, numbers, or examples whenever
possible
1. Sourcing and Fabrication of Main Resources or raw materials
- Superior input materials contribute to streamlined processes and quicker
conclusions reached through rapid assessments.
10. - Raw material improvements can reduce the possibility of substandard drug
production. For example, GSK uses IoT sensors mounted on raw material
bottles to track the condition of raw materials during transportation in real-
time.
2. Production and Manufacturing
- More effective planning leads to increased performance and financial returns.
- Combining IoT capabilities and advanced analytics allows Johnson &
Johnson to efficiently manage their manufacturing operations, ensuring they
can quickly address any issues and increase productivity.
3. Quality Testing
- Tightened product integrity achieved through fast test response times.
- Advanced sensor and data analysis technologies are applied in the
pharmaceutical industry to determine differences in test results, thereby
meeting precise quality criteria.
4. Packing and Storage
- Protect products through optimal measures, thereby reducing the possibility
of harm during logistics and inventory management.
- Pfizer incorporates advanced temperature and humidity sensors into its supply
chain to maintain ideal vaccine conditions.
5. Distribution and Transportation
- Improved monitoring ensures fast and trouble-free delivery.
- Through their research, MHI and Deloitte found that 69% of pharmaceutical
and biotechnology companies consider IoT as a means to strengthen supply
chain visibility, particularly regarding distribution and transportation aspects.
6. Verification of Origin and Authenticity
- Increased customer trust, coupled with reduced counterfeiting, can result in
this additional benefit.
- Walmart and IBM partner to investigate the implementation of a blockchain
platform to track the sourcing and distribution of pharmaceutical products,
with the goal of increasing accountability and reducing the dangers of
counterfeit goods.
7. Storage at Retailers
- Simplified stock control measures can lead to fewer shortages or oversupply,
thereby increasing customer satisfaction.
- Walgreens leverages RFID innovation to streamline inventory tracking and
more accurately maintain product supply at retail locations.
8. Usage Tracking and Customer Monitoring
- More precise data collection, when combined with comprehensive privacy
protection, can explain more fully user behavior.
- Accenture's investigative findings reveal that a surprising proportion of
patients (80%) are more likely to divulge their personal information when
they realize it will contribute to a better understanding of their medical needs.
11. 9. Handling Goods Sold Through Reverse Supply Chain
- simplified processes save money while providing faster results and more
efficiently recovered product.
- IBM launched a blockchain-based solution in 2020 to help pharmaceutical
companies speed up and improve their returns processing.
10. Regulatory Compliance and Reporting
- Thorough and precise reporting, reduced risk of retaliation, and optimal
compliance.
- The FDA outlines how blockchain can be applied to drug distribution systems
to increase compliance and responsibility.