Deployment of Smart Contract based Blockchain to Optimise Pharma Supply Chain

Abstract

Blockchain is a system for recording transactions while assuring an immutable and permanent audit trail of the transactions that occur as a part of the network. The system of recording transactions is implemented in such a way that it is highly secure. The Blockchain in simple words can be described as a digital distributed ledger that is duplicated across the network of systems that are a part of the blockchain. Each block consists of a number of transactions, and when a new transaction occurs, it is added to the ledger of every member or participant. This decentralised database is known as Digital ledger technology. The blockchains are recorded with a cryptographic signature called a hash. The features which make the blockchain stand out are its programmability, high security, immutability and its ability to be distributed, anonymous, time-stamped and unanimous. Innovative interactions with Blockchain alongside AI, IoT and augmented reality exhibit a good future scope for the creation of models based on the same. The use of analytics and IoT in sync with smart contracts can make blockchain-based systems intelligent and active. Smart contracts comprise the logic encoded with the blockchain. Together, blockchain and smart contracts can help achieve high security, transparency and autonomy for the transactions that occur in the blockchain between its members, i.e., network nodes. Supply chain and logistics in the pharma industry has been posed with many challenges including the high number of distributors, lack of traceability and delay. Analysis of the pharma industry indicated that the supply chain processes in the industry are complex with various inter-relationships and interdependencies. Blockchain when embedded with smart contracts can bring about an evolution in the pharma industry. Together they would influence and drive the success factors as required by the industry while generating a throughput in terms of structure and capabilities. Blockchain is an example of the concept that can drive supply chain management systems of the pharma industry and can help make/take important decisions in favour of their final customer. However, organisations need to ensure that their technologies and business models are well aligned with the blockchain to achieve the best possible outcome or value-added services from the same. Blockchain must be kept concurrent with the evolving standards for its optimised utilisation.