scholarly journals Blockchain Technology for Detecting Falsified and Substandard Drugs in Distribution: Pharmaceutical Supply Chain Intervention (Preprint)

Author(s):  
Patrick Sylim ◽  
Fang Liu ◽  
Alvin Marcelo ◽  
Paul Fontelo

BACKGROUND Drug counterfeiting is a global problem with significant risks to consumers and the general public. In the Philippines, 30% of inspected drug stores in 2003 were found with substandard/spurious/falsely-labeled/falsified/counterfeit drugs. The economic burden on the population drug expenditures and on governments is high. The Philippine Food and Drug Administration (FDA) encourages the public to check the certificates of product registration and report any instances of counterfeiting. The National Police of Philippines responds to such reports through a special task force. However, no literature on its impact on the distribution of such drugs were found. Blockchain technology is a cryptographic ledger that is allegedly immutable through repeated sequential hashing and fault-tolerant through a consensus algorithm. This project will develop and test a pharmacosurveillance blockchain system that will support information sharing along the official drug distribution network. OBJECTIVE This study aims to develop a pharmacosurveillance blockchain system and test its functions in a simulated network. METHODS We are developing a Distributed Application (DApp) that will run on smart contracts, employing Swarm as the Distributed File System (DFS). Two instances will be developed: one for Ethereum and another for Hyperledger Fabric. The proof-of-work (PoW) consensus algorithm of Ethereum will be modified into a delegated proof-of-stake (DPoS) or practical Byzantine fault tolerance (PBFT) consensus algorithm as it is scalable and fits the drug supply chain environment. The system will adopt the GS1 pedigree standard and will satisfy the data points in the data standardization guidelines from the US FDA. Simulations will use the following 5 nodes: for FDA, manufacturer, wholesaler, retailer, and the consumer portal. RESULTS Development is underway. The design of the system will place FDA in a supervisory data verification role, with each pedigree type–specific data source serving a primary data verification role. The supply chain process will be initiated by the manufacturer, with recursive verification for every transaction. It will allow consumers to scan a code printed on the receipt of their purchases to review the drug distribution history. CONCLUSIONS Development and testing will be conducted in a simulated network, and thus, results may differ from actual practice. The project being proposed is disruptive; once tested, the team intends to engage the Philippine FDA to discuss implementation plans and formulate policies to facilitate adoption and sustainability. REGISTERED REPORT IDENTIFIER RR1-10.2196/10163

Author(s):  
Muhammad Jameel Labaran ◽  
Mansur Hamma-Adama

Aim: Critically investigating the possibility of adopting blockchain technology within the Nigerian pharmaceutical supply chain to curb the supply of counterfeit drugs. Study Design: The study is qualitative in nature and the primary data were fetched through interviews. Place and Duration of the Study: Conducted within Nigeria for a period of 3 months. Methodology: A qualitative method of data collection was adopted in the study, where some stakeholders were interviewed. The interviews were conducted with employees from different pharmaceutical companies and some drug regulatory agencies in Nigeria. Result: Firstly, this study has ascertained the current prevalence of counterfeit drugs and the reasons for that. The study discovers a very high level of counterfeit drugs and some reasons behind that. Secondly, this study has also found some barriers to blockchain adoption, including the fact that the level of awareness of blockchain technology among stakeholders within the Nigerian pharmaceutical supply chain and the regulatory agencies is very low. Conclusion: It was concluded that the efforts put in developing a viable COVID-19 vaccine could be undermined due to the current nature of the Nigerian pharmaceutical supply chain, the nature of porous borders in place, absence of an apparent drug distribution system, among others.  This study also concludes that the supply chain's current structure needs more regulatory and structural interventions by the Nigerian government than blockchain technology. In other words, with the current nature of the supply chain, blockchain technology adoption would not be effective in delivering the said benefits reported by scholars because the atmosphere is not conducive for successful blockchain adoption.


Author(s):  
Kevin A. Clauson ◽  
Elizabeth A. Breeden ◽  
Cameron Davidson ◽  
Timothy K. Mackey

Background: Effective supply chain management is a challenge in every sector, but in healthcare there is added complexity and risk as a compromised supply chain in healthcare can directly impact patient safety and health outcomes. One potential solution for improving security, integrity, data provenance, and functionality of the health supply chain is blockchain technology. Objectives: Provide an overview of the opportunities and challenges associated with blockchain adoption and deployment for the health supply chain, with a focus on the pharmaceutical supply, medical device and supplies, Internet of Healthy Things (IoHT), and public health sectors. Methods: A narrative review was conducted of the academic literature, grey literature, and industry publications, in addition to identifying and characterizing select stakeholders engaged in exploring blockchain solutions for the health supply chain. Results: Critical challenges in protecting the integrity of the health supply chain appear well suited for adoption of blockchain technology. Use cases are emerging, including using blockchain to combat counterfeit medicines, securing medical devices, optimizing functionality of IoHT, and improving the public health supply chain. Despite these clear opportunities, most blockchain initiatives remain in proof-of-concept or pilot phase. Conclusion: Blockchain technology has the unrealized promise to help improve the health supply chain, but further study, evaluation and alignment with policy mechanisms is needed. Keywords: Blockchain, Distributed Ledger, Pharmacy, Pharmaceutical, Supply chain  


Author(s):  
Arun Kumar Nageswar ◽  
Siva Yellampalli

With traditional ERP systems, there is a lack of networking among suppliers, partners, and logistics providers. So, there is a need to have a holistic view of production and movement of goods from production to last mile delivery. The physical and digital supply chains need to be integrated to ensure secure supply chains that promote business excellence, collaboration among stakeholders, and reduce costs. The high-level view over their supply chains allows them to function better in a multi-channel world. It also helps them identify where to reduce stock without compromising customer service. Otherwise, it leads to a delay in delivery, counterfeit products, thefts, fraud, and cyberpiracy, which may lead to lawsuits and losing of brand image. The tacit function of supply chain management is to provide tracking of specific goods in the supply chain. So, it is imperative to leverage the blockchain technology stack to map multi-enterprise value networks and enable connected multi-modal networks.


Author(s):  
Raja Jayaraman ◽  
Khaled Salah ◽  
Nelson King

Despite key advances in healthcare informatics and management, little progress to address supply chain process-related problems has been made to date. Specifically, key healthcare supply chain processes include product recalls, monitoring of product supply shortages, expiration, and counterfeits. Implementing and executing these processes in a trusted, secure, efficient, globally accessible and traceable manner is challenging due to the fragmented nature of the healthcare supply chain, which is prone to systemic errors and redundant efforts that may compromise patient safety and impact health outcomes adversely. Blockchain, combined with the Internet of things (IoT), is an emerging technology that can offer a practical solution to these challenges. Accordingly, IoT blockchain offers a superior way to track and trace products via a peer-to-peer distributed, secure, and shared ledger of the blockchain network. This article highlights key challenges related to healthcare supply chains, and illustrates how IoT blockchain technologies can play a role in overcoming these challenges now and in the near future.


Author(s):  
Thanigavelan Jambulingam ◽  
Ravi Kathuria

Purpose The purpose of this study is to understand the antecedents that influence supply chain coordination in the pharmaceutical supply chain using the transaction cost analysis framework. Design/methodology/approach Data from 156 retail pharmacies on their relationship with the pharmaceutical wholesalers are used to test the hypotheses. Findings The findings of this paper show the importance of antecedents that are based on the transactional cost theory, such as asset specificity and environmental uncertainty. These antecedents impact the supply chain process coordination at different levels – transactional, operational and strategic. Research limitations/implications Future research may investigate additional antecedents using other theoretical lenses. Practical implications Pharmaceutical wholesalers are dependent on pharmaceutical manufacturers for the supply of products and face intense competition that results in lower profit margins. Given that the pharmaceutical industry is strictly regulated, the wholesaler facilitates regulatory compliance of the manufacturers in the distribution process by coordinating with them. But the wholesalers do also face a constant threat from the manufacturers, who could potentially bypass the wholesalers (disintermediation) and go directly to the pharmacies. To counterbalance the dependence, the wholesalers strive to achieve loyalty with the retail pharmacies. Through supply chain coordination, the wholesalers achieve efficiency in procurement for the pharmacies, thus reducing cost and improving their competitive advantage. Social implications Supply chain coordination in the pharmaceutical supply chain improves the safety and security of the pharmaceutical distribution system. Originality/value This paper contributes to the supply chain coordination stream of literature. To the best of the authors’ knowledge, this is the first study to develop the three levels of process coordination in the pharmaceutical supply chain context. This paper shows how process coordination can be achieved between the dyad without vertical integration.


Author(s):  
Saswati Tripathi ◽  
Krishnamachari Rangarajan ◽  
Bijoy Talukder

Purpose Pharmaceutical industry involves highly specialized business processes where strong research and development focus along with market differentiation and localization are the deciders of success. This has led to evolution of segments and complexities in supply chain. This paper aims to focus on segmental differences in supply chain performance of Indian Pharmaceutical firms. Design/methodology/approach This paper measures supply chain performance of select segmental players of the pharmaceutical industry using financial metrics and supply chain operations reference (SCOR) key performance indicators through a five-year timeline. The best performance results are compared across the segments to identify unique performance features, if any. The sample results are validated through hypothesis testing methodology. Findings This paper has evidenced that the innovators segment is performing better in cash-to-cash cycle time and supply chain working capital productivity, whereas generics segment is doing better in distribution cost efficiency and total cost to serve aspects. Research limitations/implications The paper is based on historical financial data of firms and measures the firm focused supply chain performance. The results may not be generalized in a global context but serve as a motivator for other researchers to take similar studies. The paper may further be analyzed with primary data of the firms to understand the segmental difference in customer focus supply chain performance measures. Practical implications This paper has brought out important segmental supply chain performance features of the Indian pharmaceutical firms and identified segment-specific problems by integrating SCOR KPIs and financial metrics. Originality/value This paper has integrated both SCOR KPIs and financial metrics to provide unique insights on segmental differences in the performance behavior of pharmaceutical supply chain.


2021 ◽  
Author(s):  
Martina Thume ◽  
Julia Lange ◽  
Martin Unkel ◽  
Alexander Prange ◽  
Maik Schürmeyer

Traceability has become an important aspect in supply chain management, particularly in safety-sensitive industries like food or pharmaceuticals. At the same time, blockchain arose as an innovative technology that has created excitement about its potential applications. Aim of this research paper is to analyze the requirements of the main stakeholders along the supply chain regarding a blockchain-based traceability system (BBTS). The supply chain is considered from agriculture to retail. The main result of this work is a specification framework, which consist of a supply chain process model describing activities relevant for food traceability, a collection of usage requirements formulated as data classes, a summary of technical requirements regarding data access, storage and processing, and interoperability requirements necessary to assure digital communication and permanent operability of the BBTS. Based on this, general application guidelines for digital information systems are derived and the blockchain technology is evaluated with regard to its potential in meeting requirements and challenges. A distinction between public and sensitive data appears to be necessary to assure traceability and trust in the supply chain. A two-part architecture involving a public permissioned blockchain network is proposed as the most promising basis for a digital traceability system in the food industry.


Author(s):  
Arun Kumar Nageswar ◽  
Siva Yellampalli

With traditional ERP systems, there is a lack of networking among suppliers, partners, and logistics providers. So, there is a need to have a holistic view of production and movement of goods from production to last mile delivery. The physical and digital supply chains need to be integrated to ensure secure supply chains that promote business excellence, collaboration among stakeholders, and reduce costs. The high-level view over their supply chains allows them to function better in a multi-channel world. It also helps them identify where to reduce stock without compromising customer service. Otherwise, it leads to a delay in delivery, counterfeit products, thefts, fraud, and cyberpiracy, which may lead to lawsuits and losing of brand image. The tacit function of supply chain management is to provide tracking of specific goods in the supply chain. So, it is imperative to leverage the blockchain technology stack to map multi-enterprise value networks and enable connected multi-modal networks.


2014 ◽  
Vol 30 (3) ◽  
pp. 737 ◽  
Author(s):  
Alina Chircu ◽  
Eldar Sultanow ◽  
Satya Prakash Saraswat

Todays healthcare environments are characterized by a variety of products, services, and associated data and information that are transferred across many healthcare sector participants. Pharmaceutical supply chains in particular are one example of fragmented information flows among supply chain participants. Pharmaceutical supply chain processes have a crucial influence on medication quality and ultimate patient outcomes. When manufacturing problems arise, temperature control cannot be maintained throughout the supply chain, counterfeit medications enter the supply chain, containers are damaged or sensitive medication is improperly transported and stored, the drugs effectiveness can be affected and this can result in serious consequences, including patient sickens or even death. In this paper, we analyze Radio Frequency Identification Technology (RFID), a technology that can improve communication of data and information, reduce counterfeiting, and enable monitoring of drug quality in pharmaceutical supply chains. The study is conducted in the context of an RFID platform implemented in Germany. The paper extends and complements previous studies by analyzing the RFID implementation and business value in an end-to-end supply chain process across multiple stakeholders in the pharmaceutical supply chain, from the manufacturer via the wholesaler to pharmacies and hospitals. The results confirm that RFID benefits are realized when supply chain processes are changed with the help of technology, but that different supply chain participants have different benefit realization perceptions. The analysis further reveals specific types of process changes for each supply chain participant and their corresponding benefits.


2021 ◽  
Vol 37 ◽  
pp. 01013
Author(s):  
Vishwesh Lingayat ◽  
Isha Pardikar ◽  
Shubham Yewalekar ◽  
Shyamal Khachane ◽  
Sachin Pande

The production and distribution of counterfeit drugs is an urgent and increasingly critical worldwide issue, especially in pandemics. The imperfect supply chain system in the pharmaceutical industry is one of the reasons for drug counterfeiting. Drugs ownership changes from manufacturers to wholesaler, distributor, and then pharmacist before it reaches the customer thus making it difficult to keep track of it. In this paper, we have compared the existing proposed architectures of blockchain and IoT based supply chain management systems. The system implemented using hyper ledger fabric ensures sharing, storing, transparency, and traceability of data in each link of the supply chain. On the other hand, Ethereum architecture utilized the features of smart contracts to manage the interactions between sender and receiver. Finally, the study mainly focuses on increasing the safety of pharmaceutical products and reducing the manual operation of the supply chain with the most efficient architecture.


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