(Commonwealth) _ The healthcare sector contributes approximately 4.4% of all greenhouse gas (GHG) emissions. Despite this environmental impact, the pharmaceutical supply chain plays a crucial role in ensuring global accessibility to medications and medical equipment. Ineffectiveness in logistics has resulted in an annual loss of over $35 billion worth of goods. Historically, the industry has grappled with issues related to efficiency, transparency, and supply chain traceability. However, in recent years, a new wave of entrepreneurs has emerged as powerful change agents, harnessing innovative technologies to revolutionize the pharmaceutical supply chain and address these long-standing challenges.
Pharmaceutical corporations are increasingly adopting technologies such as the Internet of Things (IoT), trackers, and sensors to gain real-time visibility into their shipments. These advanced tools enable them to monitor crucial metrics like temperature and condition of medications and medical equipment throughout the supply chain journey. Additionally, they facilitate tracking and monitoring of cargo locations. By leveraging this data, stakeholders can proactively identify bottlenecks and implement remedial actions, thereby reducing the risks associated with product deterioration, fraud, and delays. For example, a health sciences company, supported by blockchain, has developed an IoT platform that utilizes tamper-evident smart labels to track pharmaceutical items, ensuring their authenticity and integrity.
With its increased openness and traceability, blockchain technology is gaining popularity as a disruptive force in the pharmaceutical supply chain. Startups are using distributed ledger technology (DLT) to build a decentralized, immutable ledger that captures all transactions, from production to distribution. This makes it possible for stakeholders, such as patients, medical professionals, and regulators, to confirm the validity and flow of pharmaceutical items. A cutting-edge business is leveraging this technology to fight medication fraud by giving patients an unchangeable record of a medicine’s journey. They contend that the commodities that result in the largest global economic loss and damage are counterfeit medications.
A study conducted by Allied Market Research highlights the significant growth expected in the adoption of blockchain technology within the healthcare industry. The research predicts that the market for blockchain in healthcare will surge to an estimated value of $16.30 billion by 2031. This projection indicates a substantial compound annual growth rate (CAGR) of 40.8% from 2022 to 2031, underscoring the increasing importance of blockchain solutions in the healthcare sector. The potential benefits of blockchain, such as enhanced data security, interoperability, and streamlined processes, are driving its widespread adoption as healthcare organizations recognize the transformative potential of this technology.
Startups are utilizing the power of artificial intelligence (AI) and data analytics to optimize supply chain operations and make wise decisions. Startups can estimate demand, improve inventory management, and expedite distribution procedures by analyzing vast amounts of data. As a result, expenses are cut, stockouts are minimized, and overall effectiveness is increased. In order to help pharmaceutical firms optimize inventory levels and enhance delivery schedules, many emerging startups nowadays, for instance, employ artificial intelligence (AI) and machine learning algorithms to give real-time insights into the supply chain.
Startups are putting more of an emphasis on maintaining high standards of quality and ensuring regulatory compliance across the pharmaceutical supply chain. Startups assist pharmaceutical firms in adhering to stringent regulatory criteria, such as those set out by the Central Drugs Standard Control Organization (CDSCO) and the Indian regulatory body. To allow product authentication and track-and-trace capabilities, one such business uses serialization and unique identification numbers. These codes are placed at the package level and are simple to scan and verify by supply chain participants. This guarantees the genuineness of medications, aiding pharmaceutical organizations in the fight against counterfeiting, stopping the distribution of subpar medications, and upholding quality control.
