Materials Today: Proceedings 46 (2021) 10776–10780

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Materials Today: Proceedings

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Investigation and assessment of blockchain technology adoption in the

pharmaceutical supply chain
Gaurav Kumar Badhotiya a,⇑, Vijay Prakash Sharma b, Surya Prakash b, Vinayak Kalluri b, Ranbir Singh b
a
Graphic Era (Deemed to be University), Dehradun, Uttarakhand, India
b
Mechanical Engineering Department, BML Munjal University, Gurgaon, India

a r t i c l e i n f o a b s t r a c t

Article history: The global pharmaceutical industry has gone through several changes in the past decade related to the
Received 14 December 2020 adoption of new technologies. The challenges that are faced by this industry mostly involve counterfeit
Received in revised form 18 January 2021 drugs and operational issues. The involvement of cold chain for vaccines, medicine etc. is also impacting
Accepted 22 January 2021
the secure logistics and transportation. Newly introduce blockchain technologies have capabilities to
Available online 25 February 2021
address these issues. The challenge which needs to address is the requirement of tracking the product
authenticity from start production to consumption point to prevent further financial losses. The present
Keywords:
study has proposed the investigation and assessment of blockchain for integration in the supply chain
Pharmaceutical supply chain
Blockchain technology
model of the pharmaceutical to securely record transactions between parties enhancing trust and trans-
Decentralised system parency. The blockchain adaptation and implementation to address the supply chain challenges are
Conceptual model discussed.
Assessment model Ó 2021 Elsevier Ltd. All rights reserved.
Selection and peer-review under responsibility of the scientific committee of the International Confer-
ence on Technological Advancements in Materials Science and Manufacturing.

1. Introduction is a substantial gap in using technology to manage the supply chain

to avoid fake products [4]. Indian pharmaceutical companies are
The pharmaceutical supply chain is one of the area of applica- facing sole set of challenges that are generating significant pres-
tion for technology-driven solutions. In the international pharma- sure on them to transmute themselves and come with solutions
ceutical drug market fake, deficient, counterfeit, and grey based on latest technologies. India is in need of massive medical
medicines comprises for $200 billion per year [1]. Studies have infrastructure and medical dugs to provide the health care facilities
uncovered a host of pharmaceutical products, medicinal drugs, to the increasing population. The modern day technological solu-
agro products, health expedients, and biological devices which tions can provide a major support to revolutionize the medicine
are counterfeiting in various countries, representing the entire and health care sector of India as it provides secure, systematic,
drug supply chain is prone to this type of crimes [2]. At the same convenient, safe and quick solutions.
time, the healthcare industries are geared up for improvements Blockchain works on the fundamental phenomenon of no repe-
in its supply chain management. This perspective aims to raise tition and symmetry of the object with decentralised, transparent,
awareness and opportunities for blockchain use in health and controlled and secure approach. The concept of blockchain in the
pharmaceutical based supply chain [3]. India is one of the top pharmaceutical supply chain can be utilized to detect fake medici-
growing pharmaceutical markets over the past years. The pharma nes with proper control over supply and demand of the drugs. This
and agro-based industry have saw the progress of 18.4% p.a. will enable pharmaceutical companies to have control over fake
between 2005 and 2018. The generic drug based sector stretched and unregistered medicines. The fake and unregistered medicines
at an even faster pace of 23% p.a. during a similar period and stood is big threat to human life as it doesn’t provide any medical recov-
for 20% of world-wide ports by volume. Conversely, while India’s ery and can cause many side-effects leading to severe health dam-
growth path looks capable on the surface, it is apparent that there age or even death in critical conditions. The global drug companies
requires secured and controlled medical logistics and supply chain
to avoid causalities to the life of the people and this is where block-
⇑ Corresponding author. chain technology can play a crucial role by using controlled and
E-mail address: [email protected] (G.K. Badhotiya).

https://doi.org/10.1016/j.matpr.2021.01.673
2214-7853/Ó 2021 Elsevier Ltd. All rights reserved.
Selection and peer-review under responsibility of the scientific committee of the International Conference on Technological Advancements in Materials Science and
Manufacturing.
Gaurav Kumar Badhotiya, Vijay Prakash Sharma, S. Prakash et al. Materials Today: Proceedings 46 (2021) 10776–10780

secure systems for distributing the lifesaving drugs. The imple- block for providing security and encrypted data. Decentralization,
mentation of blockchain includes blended use of sensors and con- transparency, and immutability are three important pillars of
nected business supply chain environment for clinical blockchain technology.
communities to provide quick, safe and secure solutions. Many
cloud-based platforms offer live data sharing for drug traceability 3. Key features and benefits of blockchain
and security of the supply chain. Enabling patients to share their
information and establishing direct access to patients[5].This kind 3.1. Decentralized system
of information sharing allows different experts to provide their
opinion and the best suitable drug for the disease can be deter- The basic idea behind the decentralized system is to create dif-
mined which would be very helpful for the patient and medicine ferent sources for the generation and avoiding over-dependency on
industry. The summary of select studies reviewed for blockchain a particular system keeping. It provides us better system durabil-
technology is presented in Table 1. ity, risk resistance, tolerance and fault detection arrays. Block chain
transaction processing time can reduced to several minutes with
2. Fundamentals of blockchain technology minimum number of permissions from a centralised server and
providing the many accessibility points reducing the load on the
The blockchain, as name suggests, is an e-ledger or list of central system. In blockchain technology, the lower transaction
records or blocks linked using cryptography that contains informa- costs can be attained by eliminating third-party intermediaries
tion comprising of the block header and a block itself. In this pro- [14]. The decentralized system of the blockchain data is consistent,
cess, these form a node of the chain with information about the comprehensive, well-timed, precise, and globally accessible.
present block and address of the other block. Blockchain forms a
data structure with ordered linking of the nodes. This technique 3.2. Tamper free environment
was developed in 1991 as a digital documentation of the data.
However, the use of this technology at the initial phase was very Blockchain provides the best security features available for
less and it rarely got used. But, suddenly it got more attention in financial transactions with transparency and precision [14]. All
2009 with emergence of bitcoin [7]. Satoshi Nakamoto created a data is embedded within the system network making it publically
platform for digital currency which enhanced the use of blockchain available withmost transparent method of finance handling. The
technology [13]. The hash component of the block is like a digital huge amount of high computing technology is required for altering
fingerprint which assures its security feature. It is unique for each the block data on the blockchain, it would be really a very difficult

Table 1
Summary of selected studies.

S. Article Methodology Purpose of study Major focus

No.
1 Gaukler Qualitative The proliferation and optimization of item-level RFID analysis. Inadequate identification of the proper strengths and
et al. weaknesses of the respective drug supply chain were the main
(2007) factors.
The paper focuses on the complexities coming in the supply
chain logistics and trying to suggest a model for cost
optimization [6].
2 Böhme and Descriptive It addresses the Financial security issues in blockchain They kept the focus on describing the factors and features of
Rainer et al. technology. blockchain technology with its usefulness in financial
(2015) transactions and security [7].
3 Rabah et al. Descriptive The paper primarily focuses on healthcare industry and The study investigates the major aspects of the health industry.
(2017) blockchain suggesting improvements in the existing supply It suggests various methods to implement transparency and
chain of the health care system. control with integration of blockchain technology in logistics
management [8].
4 Jaag et al. Descriptive This paper explains the various opportunities emerging from The study inquires various procedures followed by the postal
(2017) blockchain technology for postal services and the benefits of an offices and try to suggest a model avoiding repetitive
encrypted system in financial transactions. symmetry and financial bluff [9].
5 Leng and Qualitative The paper deal with the modeling of the dual chain ago based It shows that pre and post-harvesting problems of agro-based
Kaijun products with blockchain technology. industries can be controlled using blockchain technology
(2018) without compromising the security issues with maximum
utilization of the resources [10].
6 Kshetri and Qualitative The broad objective is to declare that the arrival of blockchain Barriers to the effective management of supply chain can be
Nir (2018) will give rise to advanced dual-toned supply chain. easily mitigated through blockchain technology enchaining its
capabilities and effectiveness with improved security features
[11].
7 Kim et al. Qualitative The paper focuses on the tracking of the pharmaceutical The important part here is the decentralized tracking and
(2018) ingredients with proper implementation blockchain having a transparency. It focuses on proper standardize inventory
secure tracking system. information of raw materials involved in life-saving drug
preparation [12].
8 Saberi and Qualitative In this paper, the supply chain is being graced by adding the The conscious driven approach shows the precertification and
Sara et al. concept of blockchain and smart contracting. smooth functioning of the organization.
(2019) This suggests a path to improve the overall functioning and The integration of the blockchain improves organizational
substantial growth of business. behaviour with proper transparency and confidentiality [13].
9 Min and Descriptive This paper explains the major challenges that are faced by the The problem of implementing blockchain in the physical world
Hokey fundamental logistics when the blockchain. keeping all attributes in its original place with transparency
(2019) and security is discussed [14].
10 Leeming Qualitative The purpose of the paper was the development of a model to The digitized health domain can work on instant solutions and
et al. address medical issues at a personal level with the help of availability with secure medical practices [15].
(2019) blockchain technology.

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Table 2
Supply chain challenges and blockchain features.

Blockchain capability
Decentralized systems Tamper free environment Immutability Consensus Driven Pseudonymity
Challenges A large number The raw material will be checked and Once a certain data and relevant Once the authorities will As each block will be verified
of vendors authenticated by several authorities information will be added about the authenticate the data than for independently hence there
(LNV) within the organization hence we will vendor and raw material than it’s any raw material you can will be certain rules for
be able to focus at each and every impossible to change its originality. determine where it is, where it’s verifying the quality and
vendor and their respective raw been and what has happened there will be a responsible
material quality [19,20]. throughout its process and life authority for the parameters.
cycle.
Multiple All Blocks for each facility can be Data for each and every facility will be There will a responsible person It can be checked that Any authority can indicate the
manufacturing merged into one blockchain which can more accurate and trusted. for each facility and for each adequate effort was made by fraud (not actually change) in the
facilities be accessed easily due to separate blockchain, hence it a person authenticating each data of each and every block
(MMF) decentralization. will be easy to access and easy to and every block in respective without telling their identity.
do modifications. facilities with one access
point only.
Complex and By adding the distribution network in a As there will be continuous visibility of Mostly third-party cold chain If any single block is verified
unequipped separate blockchain it will be easy to product/inventory will be accessible logistics providers involved here by the third-party logistics
distribution track the inventory as well as the hence there will be fewer chances to in distribution network hence provider then there will be at
network finished product (temperature, lose control over quality due to they cannot play with the data least one answerable person.
(CUDN) handling, and visibility). temperature control e.tc. already verified by the
organization authorities.
Procurement Here Raw material and batch failures Issues with the quality and availability As we got data for every step in After identifying where the Each block will be verified
(P) can be controlled by continuous quality of raw materials have spiralled over the each process it’s easy to identify problem is we can easily according to Consensus models
checks by every department and putting past few years, leading to production that at which step quality got access the concerned person which provide rules for validating a
the information in relevant block hence failures, quality delays, and lack of degraded or from where the who has verified that data in block hence it will be easily
10778

all the information can be accessible by availability of resources across the poor quality raw material the block. identified which particular
one source. plant) arrived. parameter is responsible for the
lack in process.
Manufacturing The certifications and government In such cases, consensus-driven feature Each and every process which Any authority can indicate and
(M) regularities have caused many or consensus model for meeting the will be entered into the signify the false or fake data
unexpected delays, plant shutdowns perimeter will be most effective as the blockchain will be verified after informing all other entities.
and abundance of significant unused manufacturing company of a certain meeting those parameters only.
capacity of raw materials and retail drug can design their consensus model
across the network. Providing many according to the government
control centres. parameters.
Reverse All the products will be present in
logistics (RL) blockchain hence whenever the product
will moving back it can be kept in any

Materials Today: Proceedings 46 (2021) 10776–10780

warehouse or relevant place and can be
used whenever there will be a demand
in the market. It will be much safer than
before as you can track it with the help
of blockchain [21].
No visibility of For this challenge, blockchain is the best
inventory (NVI) solution as once the entry of inventory
data is entered in the blockchain you
can find all the answers
relatedinventory or finished product like
where it was? Also you will have all the
information who is the contact person
who has authorized each and every
block in the blockchain [20,22].
Gaurav Kumar Badhotiya, Vijay Prakash Sharma, S. Prakash et al. Materials Today: Proceedings 46 (2021) 10776–10780

task to generate the high end computing power to get ahead of the all exchanges occurring within system. Without a blockchain, orga-
entire system and nodal network. Hence, it verifies that the system nizations deploy numerous individuals to review their requests to
is transparent, secure and non-corrupt. The linking of data through get volume benefits. However, blockchain do this work without the
nodes in a single chained network doesnot provide any single weak staff and with no additional time, wiping out the new value check
link for tampering the supply chain system. process, hence, put great benefits for supply chain managers.

3.3. Immutability and pseudonymity 5. Blockchain and supply chain challenges (SCC)

Once the system agreed on a transaction and records it, this The major challenges faced by pharmaceutical supply chain are
cannot be changed. The original record is kept as a transparent his- identified. We have accessed the features that can resolve and mit-
tory on which the permission for change is allowed. For trust ver- igate some of the issues of the select supply chain. The major chal-
ification, each block is verified independently through consensus lenges and how they will be addressed by block chain are
models that offer rules for authenticating a block [14,15]. summarised in Table 2. Total seven major areas are identified
and corresponding strategy in the blockchain technology are dis-
3.4. Consensus driven approach cussed to assess the mitigation process.
On the basis of Table 2, we have summarised the Supply chain
The data is shared with every member involved in the process system and supply chain challenges taking in consideration all the
and requires permission from all node entities to enter new com- major contributing factors in the industrial block chain assessment
modity. Therefore, when all the stations get informed about the model for the pharmaceutical company. The Fig. 1 explains the var-
new entity and allow to take the action for rejection and accep- ious components and their connectivity in the supply chain man-
tance then only a new data set or commodity can take part in agement system with integrated block chain technology adding
the process. Hence, for any new addition or reduction consensus- various secure and transparent transactions in the manufacturing,
driven approach is used and it helps the system validate all the departure, stationing and retail. The various challenges of supply
new entities [15,16]. chain like LNV, MMF, CUDN, P, M, NVI, etc. have its solution in
the blockchain technology. The supply chain system (SCS) and sup-
ply chain challenges (SCC) both works in tendon till the product is
4. Integrating blockchain into supply chain system (SCS)
received at its desired destination. The supply chain system have
its challenges that can be mitigated applying the blockchain tech-
The role of blockchain in safeguarding and optimizing supply
nology features to the respective nodes at different workstations.
chain in the pharmaceutical industry could be widely imple-
All the permissions and records are accessed by blockchain tech-
mented. The major concern of the solution that could be offered
nology make the hassle free, secure, convenient and transparent
needs to take care of better compliance and benefit for both the
system.
manufacturers and the consumers. The key requirements for the
blockchain applicability include product identification, product
tracing and verification [16]. The medical firms could implement 6. Conclusion
Radio Frequency Identification (RFID) and the Internet of Things
(IoT) to scale the business. The aids of blockchain in the pharma- Blockchain works on the fundamental phenomenon of no repe-
ceutical supply chain industry and its progressive effects on inven- tition and symmetry of the object with decentralised, transparent,
tory management of suppliers, clinicians etc. are very crucial for controlled and secure approach. The concept of blockchain in the
upcoming growth of medicine and agro sector [17,18]. Blockchain pharmaceutical supply chain can be utilized to detect fake medici-
innovation allows individual to get an expansive number of ele- nes with proper control over supply and demand of the drugs. This
ments to concur upon a common, honest arrangement of informa- will enable pharmaceutical companies to have control over fake
tion in supply chain. One such example is the financial adjustments and unregistered medicines. Since the pharmaceutical industry is
that can be done by financial institutes by choosing and recording highly unorganized and fragmented, the presence of a large num-

Fig. 1. Supply chain network model for blockchain applications.

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Gaurav Kumar Badhotiya, Vijay Prakash Sharma, S. Prakash et al. Materials Today: Proceedings 46 (2021) 10776–10780

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