Blockchain Solution for Pharma Logistics and Transport
30th November 2017
SophiaTX, the first open-source platform to integrate blockchain with SAP and other Enterprise systems, has announced its intention to facilitate a holistic ‘track and trace’ solution for the transportation of products and medicines in the pharmaceutical industry. Each of the current top twenty prescription drugs (amounting to 10% of the global market in 2016) is produced by a company using SAP software products within their sourcing, manufacturing, or supply chain processes.
A joint Letter of Intent (LOI) announced today by SophiaTX and Equidato Technologies CEO Jaroslav Kacina and the General Manager of Riyadh-based KITA Logistics, Nabil Awan, confirms an intended partnership between the two businesses on the design and development of a blockchain solution for pharmaceutical logistics and transport.
SophiaTX recently unveiled a working Proof of Concept and published a white paper revealing significant new details on how the platform can be used to facilitate multi-party collaboration across value chains (track and trace), with particular focus on the pharmaceutical sector.
“The pharmaceutical ecosystem is highly complex with many collaborating parties, manufacturing processes, quality assurance points, shipment processes, and anticipated risks,” explains SophiaTX CEO Jaroslav Kacina. “All manufacturers and partners face common issues, which cannot be resolved solely with a centralized and isolated system.”
The pharmaceutical industry on its own is a very profitable business. Increased demand, supply shortage and other market factors open doors to non-authentic drug manufacturers, an issue observable in both branded and generic products. The International Trade Organization estimates the drug counterfeit market between USD $ 70 – 200 billion. Drug counterfeits represent serious threat to public health and overall number of deaths caused.
SophiaTX’s integration with the system will allow pharmaceutical companies to write their products directly into the blockchain, thereby addressing issues of counterfeiting; compliance; supply chain conditions; traceability and recalls. Providing the product authenticity in the blockchain enables pharmaceutical companies to address counterfeit issues, helping to decrease the number of counterfeits on the market, and consequently eliminating adverse effects on the end user.
Other elements that could be added to the blockchain, via existing SAP or other Enterprise systems include information from the manufacturer (such as name, serialisation and batch number, and expiry date); shipping details; and information from IoT sensors and other smart devices over the course of logistics and transportation process. Together, this information would enable the verification of the logistics process and conditions, the authenticity and provenance of the product; and minimises adverse effects on the end user.