Analyze and Design New Concept of Supply Chain Management in Pharmaceutical Industry by Blockchain.

Osman Efe Adalier

Master's thesis

Abstract:

Blockchain is a revolutionary technology and a new approach of sharing data securely between computers, thus it can have a huge impact in the industry and change business models in an efficient and innovative way. The aim of this research is to analyze whether blockchain technology can be integrated in pharmaceutical supply chain processes in order to improve the control over operations to initiate efficient and secure delivery of medical products. The research gives information about historical and technical background of blockchain, defines pharmaceutical supply chain processes and identifies the use cases of blockchain concepts along with pharmaceutical supply chain processes by documentary analysis as well as case studies of three companies. During the research it was discovered that blockchain features can make big improvements in pharmaceutical supply chain. Establishing a private blockchain network between organizations involved in supply chain can solve counterfeit drug problem by tracking drugs from production till end user. Integration of IOT (Internet of Things) devices with blockchain can enable continuous monitoring of drugs during shipment from one point to another to ensure the regulatory conditions are met and drugs are transported according to the required conditions. Smart contracts can be used for efficient procurement and secure the terms without the requirement of trust between two parties. Cryptocurrency can be used as a payment method for an efficient finance management and remove the need for a third party. As a result, new framework of business processes in pharmaceutical supply chain is designed with these concepts and cryptocurrencies are evaluated from the point of transaction per second, transaction confirmation time and volatility.

Abstract:

Blockchain is a revolutionary technology and a new approach of sharing data securely between computers, thus it can have a huge impact in the industry and change business models in an efficient and innovative way. The aim of this research is to analyze whether blockchain technology can be integrated in pharmaceutical supply chain processes in order to improve the control over operations to initiate efficient and secure delivery of medical products. The research gives information about historical and technical background of blockchain, defines pharmaceutical supply chain processes and identifies the use cases of blockchain concepts along with pharmaceutical supply chain processes by documentary analysis as well as case studies of three companies. During the research it was discovered that blockchain features can make big improvements in pharmaceutical supply chain. Establishing a private blockchain network between organizations involved in supply chain can solve counterfeit drug problem by tracking drugs from production till end user. Integration of IOT (Internet of Things) devices with blockchain can enable continuous monitoring of drugs during shipment from one point to another to ensure the regulatory conditions are met and drugs are transported according to the required conditions. Smart contracts can be used for efficient procurement and secure the terms without the requirement of trust between two parties. Cryptocurrency can be used as a payment method for an efficient finance management and remove the need for a third party. As a result, new framework of business processes in pharmaceutical supply chain is designed with these concepts and cryptocurrencies are evaluated from the point of transaction per second, transaction confirmation time and volatility.

Keywords

Blockchain Technology, Blockchain Risks, Blockchain and Pharmaceutical Supply Chain, Blockchain Advantages, Blockchain Limitations, Pharmaceutical Supply Chain Processes, Blockchain History, Pharmaceutical Supply Chain Risks and Regulations

Keywords

Blockchain Advantages, Pharmaceutical Supply Chain Processes, Blockchain Risks, Blockchain History, Blockchain Technology, Pharmaceutical Supply Chain Risks and Regulations, Blockchain and Pharmaceutical Supply Chain, Blockchain Limitations

Language used: English

Date on which the thesis was submitted / produced: 1. 11. 2018

Thesis defence

• Date of defence: 10. 6. 2019
• Supervisor: Antonín Pavlíček
• Reader: Jan Kučera

Vysoká škola ekonomická v Praze

Master programme / field:
Aplikovaná informatika / Information Systems Management