From an optimization point of view, supply chain offers 3 main benefits namely, Operational agility and

speed to value, Cost takeout and risk mitigation, new monetization opportunities. In healthcare, these
benefits translate into assuring data integrity across all the parties, achieving full traceability and gaining
new operational efficiencies.
An approach to blockchain implementation in Healthcare Supply Chain:
Use Case I: Recall
When a sale of a product is offered by the product manufacturer in the supply chain, a block is created and
each transaction pertaining to the product is recorded. The information contained includes universal
product ID and other dynamic attributes of the product including batch, lot, serial number, quantity, unit of
measure and expiration dates. Transaction blocks are accessible and validated by business partners acting
as transiting nodes. Each and every transaction gets recorded in the blockchain and becomes available to
all the other participating nodes. When a distributor performs a sales transaction of a product with
healthcare providers, every supply chain partner can trace and validate those transactions. Additionally,
information about all transactions gets logged thus upholding the immutability aspect of a blockchain. This
helps in auditing and maintain a trail to verify the purchases. Under no circumstances, can the information
be removed or deleted and thus it requires a high level of trust between transacting entities. Inventory
visibility can be enabled with high integrity, accuracy and fidelity. Lack of inventory visibility is a pressing
issue which often hampers service levels.

Transaction block creation and validation

Source: Deloitte
In the event of a product recall, blockchain-enabled supply chain permits manufacturer to identify and
notify specific trading partners and suppliers, enabling a targeted recall preventing widespread panic
across the supply chain. The use of blockchain can drastically reduce the closing time in recall, offering
optimized product management and cost savings. It also helps to validate the authenticity of products in
supply chain. Since healthcare is a regulation intensive business, it is necessary to be aware about what
product and what quantity was legitimized for sale. This practice can be ensured with the help of
blockchain which can be used to verify and set pricing eligibility of providers for various tiers as negotiated
by group purchase organizations. Blockchain solutions can be used in volume-based product sale tracking.
As an example, when a manufacturer produces 500 units of a product and makes it available for sales, the
distributors or other transacting parties may not be able to sell more than 500 to downstream supply chain
stakeholders. So, if a transaction sale of over 500 units of product is tried to be made, it would be
invalidated by the blockchain thanks to the information lying with all the parties and the rules in the
ledger. In backorder fulfillment, the entities can verify if the manufacturer had released additional quantity
and validate the corresponding batch and lot numbers to prevent counterfeiting.
Use Case I: Recall
The pharmaceutical industry is witnessing a period of heightened regulatory scrutiny and the track and
trace of drugs have emerged as the critical focus area. According to various acts related to drugs across the
world, companies will have to be proactive in this regard. An electronic interoperable system will be
required to pass the serial number information between the supplier, wholesaler, pharmacy and hospitals.
Tracking medicines and medical devices from the source to the shelf is now an imperative. A typical
blockchain and IoT based supply chain solution should be able to monitor the ambient parameters of the
drugs in transit like temperature, vibration, humidity and luminosity. It can also track operational
milestones against serialized packages and give every stakeholder access to required information through
shared ledger technology. A good solution should also support the execution of contracts with suppliers or
logistic partners automatically as smart contracts and as a result the data becomes transparent.
Suggestively, a customer should be able to scan a code on the product and view the entire journey from
raw material to final form.
Some of the typical features which should explicitly be a part of a blockchain solution is:
1. Triple accounting model: leveraged to reduce financial reconciliations – contracts, call offs and
settlements
2. IoT integration for seamless event tracking
3. Secure Box Concept: one an authorized party can access and alter data in the chain by a key issued
by the blockchain

Secure Product Transfer

Source: TCS