Internet of Things (IoT)–blockchain-enabled pharmaceutical supply chain resilience in the post-pandemic era

Abstract

During the COVID-19 pandemic, the current operating environment of pharmaceutical supply chain (PSC) has rapidly changed and faced increasing risks of disruption. The Internet of Things (IoT) and blockchain not only help enhance the efficiency of PSC operations in the information technology domain but also address complex related issues and improve the visibility, flexibility, and transparency of these operations. Although IoT and blockchain have been widely examined in the areas of supply chain and logistics management, further work on PSC is expected by the public to enhance its resilience. To respond to this call, this paper combines a literature review with semi-structured interviews to investigate the characteristics of PSC, the key aspects affecting PSC, and the challenges faced by PSC in the post-pandemic era. An IoT–blockchain-integrated hospital-side oriented PSC management model is also developed. This paper highlights how IoT and blockchain technology can enhance supply chain resilience and provides a reference on how PSC members can cope with the associated risks.

Graphical abstract

Keywords

pharmaceutical supply chain / Internet of Things / blockchain / resilience / post-pandemic era

References

[1] Al-Rakhami, M S Al-Mashari, M (2021). A blockchain-based trust model for the Internet of Things supply chain management. Sensors, 21( 5): 1759

[2] Al-Talib, M Melhem, W Y Anosike, A I Garza Reyes, J A Nadeem, S P Kumar, A (2020). Achieving resilience in the supply chain by applying IoT technology. Procedia CIRP, 91: 752–757

[3] Awan, S Ahmed, S Ullah, F Nawaz, A Khan, A Uddin, M I Alharbi, A Alosaimi, W Alyami, H (2021). IoT with blockchain: A futuristic approach in agriculture and food supply chain. Wireless Communications and Mobile Computing, 5580179

[4] Banerjee, A (2019). Blockchain with IoT: Applications and use cases for a new paradigm of supply chain driving efficiency and cost. Advances in Computers, 115: 259–292

[5] Belhadi, A Kamble, S Jabbour, C J C Gunasekaran, A Ndubisi, N O Venkatesh, M (2021). Manufacturing and service supply chain resilience to the COVID-19 outbreak: Lessons learned from the automobile and airline industries. Technological Forecasting and Social Change, 163: 120447

[6] Birkel, H S Hartmann, E (2020). Internet of Things: The future of managing supply chain risks. Supply Chain Management, 25( 5): 535–548

[7] Burgos, D Ivanov, D (2021). Food retail supply chain resilience and the COVID-19 pandemic: A digital twin-based impact analysis and improvement directions. Transportation Research Part E: Logistics and Transportation Review, 152: 102412

[8] Casey, M J Wong, P (2017). Global supply chains are about to get better, thanks to blockchain. Harvard Business Review, 13: 1–6

[9] Cavalcante, I M Frazzon, E M Forcellini, F A Ivanov, D (2019). A supervised machine learning approach to data-driven simulation of resilient supplier selection in digital manufacturing. International Journal of Information Management, 49: 86–97

[10] China Business Intelligence Network (2022). Summary of the current situation of China’s pharmaceutical terminal market in 2021: Sales increased by 8% year-on-year (in Chinese)

[11] ChoiT M (2021). Fighting against COVID-19: What operations research can help and the sense-and-respond framework. Annals of Operations Research, in press, doi:10.1007/s10479-021-03973-w

[12] Choi, T M Wen, X Sun, X Chung, S H (2019). The mean-variance approach for global supply chain risk analysis with air logistics in the blockchain technology era. Transportation Research Part E: Logistics and Transportation Review, 127: 178–191

[13] Chowdhury, M Sarkar, A Paul, S K Moktadir, M (2022). A case study on strategies to deal with the impacts of COVID-19 pandemic in the food and beverage industry. Operations Management Research, 15( 1–2): 166–178

[14] Chowdhury, P Paul, S K Kaisar, S Moktadir, M A (2021). COVID-19 pandemic related supply chain studies: A systematic review. Transportation Research Part E: Logistics and Transportation Review, 148: 102271

[15] Christidis, K Devetsikiotis, M (2016). Blockchains and smart contracts for the Internet of Things. IEEE Access, 4: 2292–2303

[16] Christopher, M Peck, H (2004). Building the resilient supply chain. The International Journal of Logistics Management, 15( 2): 1–14

[17] Clauson, K A Breeden, E A Davidson, C Mackey, T K (2018). Leveraging blockchain technology to enhance supply chain management in healthcare: An exploration of challenges and opportunities in the health supply chain. Blockchain in Healthcare Today, 1: 1–12

[18] CobleS (2022). Memorial health system confirms data breach. Online News

[19] Cui, Y Idota, H Ota, M (2019). Improving supply chain resilience with implementation of new system architecture. In: IEEE Social Implications of Technology and Information Management. Matsuyama: IEEE, 1–6

[20] Cundell, T Guilfoyle, D Kreil, T R Sawant, A (2020). Controls to minimize disruption of the pharmaceutical supply chain during the COVID-19 pandemic. PDA Journal of Pharmaceutical Science and Technology, 74( 4): 468–494

[21] del Rio, C Omer, S B Malani, P N (2022). Winter of Omicron: The evolving COVID-19 pandemic. Journal of the American Medical Association, 327( 4): 319–320

[22] Dolgui, A Ivanov, D (2022). 5G in digital supply chain and operations management: Fostering flexibility, end-to-end connectivity and real-time visibility through Internet-of-everything. International Journal of Production Research, 60( 2): 442–451

[23] Dubey, R Gunasekaran, A Bryde, D J Dwivedi, Y K Papadopoulos, T (2020). Blockchain technology for enhancing swift-trust, collaboration and resilience within a humanitarian supply chain setting. International Journal of Production Research, 58( 11): 3381–3398

[24] Dutta, P Choi, T M Somani, S Butala, R (2020). Blockchain technology in supply chain operations: Applications, challenges and research opportunities. Transportation Research Part E: Logistics and Transportation Review, 142: 102067

[25] Ehrenberg, A J King, J L (2020). Blockchain in context. Information Systems Frontiers, 22( 1): 29–35

[26] El Baz, J Ruel, S (2021). Can supply chain risk management practices mitigate the disruption impacts on supply chains’ resilience and robustness? Evidence from an empirical survey in a COVID-19 outbreak era. International Journal of Production Economics, 233: 107972

[27] Emanuel, E J Persad, G Upshur, R Thome, B Parker, M Glickman, A Zhang, C Boyle, C Smith, M Phillips, J P (2020). Fair allocation of scarce medical resources in the time of COVID-19. New England Journal of Medicine, 382( 21): 2049–2055

[28] Farouk, A Alahmadi, A Ghose, S Mashatan, A (2020). Blockchain platform for industrial healthcare: Vision and future opportunities. Computer Communications, 154: 223–235

[29] Feng, S L Ye, T C (2010). Preliminary exploration of the way of the development of the Internet of Things/sensor networks. Bulletin of Chinese Academy of Sciences, 25( 1): 50–54

[30] Gao, Y Feng, Z Zhang, S (2021). Managing supply chain resilience in the era of VUCA. Frontiers of Engineering Management, 8( 3): 465–470

[31] Goodarzian, F Taleizadeh, A A Ghasemi, P Abraham, A (2021). An integrated sustainable medical supply chain network during COVID-19. Engineering Applications of Artificial Intelligence, 100: 104188

[32] Gu, M Yang, L Huo, B (2020). The impact of information technology usage on supply chain resilience and performance: An ambidexterous view. International Journal of Production Economics, 232: 107956

[33] Huang, S C Chang, H Y (2016). Energy-aware supply route data collecting methods using wireless sensor networks. Wireless Communications and Mobile Computing, 16( 8): 872–883

[34] Hussain, M Javed, W Hakeem, O Yousafzai, A Younas, A Awan, M J Nobanee, H Zain, A M (2021). Blockchain-based IoT devices in supply chain management: A systematic literature review. Sustainability, 13( 24): 13646

[35] Ivanov, D (2020a). Predicting the impacts of epidemic outbreaks on global supply chains: A simulation-based analysis on the coronavirus outbreak (COVID-19/SARS-CoV-2) case. Transportation Research Part E: Logistics and Transportation Review, 136: 101922

[36] IvanovD (2020b). Viable supply chain model: Integrating agility, resilience and sustainability perspectives, lessons from and thinking beyond the COVID-19 pandemic. Annals of Operations Research, in press, doi:10.1007/s10479-020-03640-6

[37] IvanovD (2021). Exiting the COVID-19 pandemic: After-shock risks and avoidance of disruption tails in supply chains. Annals of Operations Research, in press, doi:10.1007/s10479-021-04047-7

[38] Ivanov, D Blackhurst, J Das, A (2021). Supply chain resilience and its interplay with digital technologies: Making innovations work in emergency situations. International Journal of Physical Distribution & Logistics Management, 51( 2): 97–103

[39] Ivanov, D Dolgui, A (2021). OR-methods for coping with the ripple effect in supply chains during COVID-19 pandemic: Managerial insights and research implications. International Journal of Production Economics, 232: 107921

[40] Ivanov, D Dolgui, A Sokolov, B (2019). The impact of digital technology and Industry 4.0 on the ripple effect and supply chain risk analytics. International Journal of Production Research, 57( 3): 829–846

[41] Joyia, G J Liaqat, R M Farooq, A Rehman, S (2017). Internet of Medical Things (IoMT): Applications, benefits and future challenges in healthcare domain. Journal of Communications, 12( 4): 240–247

[42] Koot, M Mes, M R Iacob, M E (2021). A systematic literature review of supply chain decision making supported by the Internet of Things and Big Data Analytics. Computers & Industrial Engineering, 154: 107076

[43] KumarSPundirA K (2020). Blockchain–Internet of Things (IoT) enabled pharmaceutical supply chain for COVID-19. In: Proceedings of the 5th NA International Conference on Industrial Engineering and Operations Management. Detroit, MI: IEOM Society International, 1592–1599

[44] Lam, C Y Ip, W H (2019). An integrated logistics routing and scheduling network model with RFID-GPS data for supply chain management. Wireless Personal Communications, 105( 3): 803–817

[45] Lee, I Lee, K (2015). The Internet of Things (IoT): Applications, investments, and challenges for enterprises. Business Horizons, 58( 4): 431–440

[46] Li, S Xu, L D Zhao, S (2015). The Internet of Things: A survey. Information Systems Frontiers, 17( 2): 243–259

[47] LizaS AChowdhuryN RPaulS KMorshedMMorshedS MBhuiyanM TRahimM A (2022). Barriers to achieving sustainability in pharmaceutical supply chains in the post-COVID-19 era. International Journal of Emerging Markets, in press, doi:10.1108/IJOEM-11-2021-1680

[48] Lohmer, J Bugert, N Lasch, R (2020). Analysis of resilience strategies and ripple effect in blockchain-coordinated supply chains: An agent-based simulation study. International Journal of Production Economics, 228: 107882

[49] Lücker, F Seifert, R W (2017). Building up resilience in a pharmaceutical supply chain through inventory, dual sourcing and agility capacity. Omega, 73: 114–124

[50] Mandal, S (2017). The influence of organizational culture on healthcare supply chain resilience: Moderating role of technology orientation. Journal of Business and Industrial Marketing, 32( 8): 1021–1037

[51] Min, H (2019). Blockchain technology for enhancing supply chain resilience. Business Horizons, 62( 1): 35–45

[52] Moro Visconti, R Morea, D (2020). Healthcare digitalization and pay-for-performance incentives in smart hospital project financing. International Journal of Environmental Research and Public Health, 17( 7): 2318

[53] NakamotoS (2008). Bitcoin: A peer-to-peer electronic cash system. Online Paper

[54] Nasiri, M Ukko, J Saunila, M Rantala, T (2020). Managing the digital supply chain: The role of smart technologies. Technovation, 96–97: 102121

[55] Nayeri, S Sazvar, Z Heydari, J (2022). A global-responsive supply chain considering sustainability and resiliency: Application in the medical devices industry. Socio-Economic Planning Sciences, 82: 101303

[56] Ozdemir, D Sharma, M Dhir, A Daim, T (2022). Supply chain resilience during the COVID-19 pandemic. Technology in Society, 68: 101847

[57] Pal, K Yasar, A U H (2020). Internet of Things and blockchain technology in apparel manufacturing supply chain data management. Procedia Computer Science, 170: 450–457

[58] Paul, S K Rahman, S (2018). A quantitative and simulation model for managing sudden supply delay with fuzzy demand and safety stock. International Journal of Production Research, 56( 13): 4377–4395

[59] Pavithran, D Shaalan, K Al-Karaki, J N Gawanmeh, A (2020). Towards building a blockchain framework for IoT. Cluster Computing, 23( 3): 2089–2103

[60] Ponomarov, S Y Holcomb, M C (2009). Understanding the concept of supply chain resilience. International Journal of Logistics Management, 20( 1): 124–143

[61] Pujawan, I N Bah, A U (2022). Supply chains under COVID-19 disruptions: Literature review and research agenda. Supply Chain Forum, 23( 1): 81–95

[62] QueirozM MIvanovDDolguiAFosso WambaS (2020). Impacts of epidemic outbreaks on supply chains: Mapping a research agenda amid the COVID-19 pandemic through a structured literature review. Annals of Operations Research, in press, doi:10.1007/s10479-020-03685-7

[63] Rejeb, A Keogh, J G Treiblmaier, H (2019). Leveraging the Internet of Things and blockchain technology in supply chain management. Future Internet, 11( 7): 161

[64] Rejeb, A Rejeb, K Zailani, S Treiblmaier, H Hand, K J (2021). Integrating the Internet of Things in the halal food supply chain: A systematic literature review and research agenda. Internet of Things, 13: 100361

[65] Remko, V H (2020). Research opportunities for a more resilient post-COVID-19 supply chain: Closing the gap between research findings and industry practice. International Journal of Operations & Production Management, 40( 4): 341–355

[66] Reyna, A Martín, C Chen, J Soler, E Díaz, M (2018). On blockchain and its integration with IoT: Challenges and opportunities. Future Generation Computer Systems, 88: 173–190

[67] Rodrigues, J J P C de Rezende Segundo, D B Junqueira, H A Sabino, M H Prince, R M Al-Muhtadi, J de Albuquerque, V H C (2018). Enabling technologies for the Internet of Health Things. IEEE Access, 6: 13129–13141

[68] Sarkis, J (2020). Supply chain sustainability: Learning from the COVID-19 pandemic. International Journal of Operations & Production Management, 41( 1): 63–73

[69] Scala, B Lindsay, C F (2021). Supply chain resilience during pandemic disruption: Evidence from healthcare. Supply Chain Management, 26( 6): 672–688

[70] Schneider, J L Wilson, A Rosenbeck, J M (2010). Pharmaceutical companies and sustainability: An analysis of corporate reporting. Benchmarking, 17( 3): 421–434

[71] SennaPReisADiasACoelhoOGuimaraesJElianaS (2021). Healthcare supply chain resilience framework: Antecedents, mediators, consequents. Production Planning and Control, in press, doi:10.1080/09537287.2021.1913525

[72] Sharma, A Gupta, P Jha, R (2020). COVID-19: Impact on health supply chain and lessons to be learnt. Journal of Health Management, 22( 2): 248–261

[73] Sharma, A Podoplelova, E Shapovalov, G Tselykh, A Tselykh, A (2021). Sustainable smart cities: Convergence of artificial intelligence and blockchain. Sustainability, 13( 23): 13076

[74] Spieske, A Birkel, H (2021). Improving supply chain resilience through Industry 4.0: A systematic literature review under the impressions of the COVID-19 pandemic. Computers & Industrial Engineering, 158: 107452

[75] Spieske, A Gebhardt, M Kopyto, M Birkel, H (2022). Improving resilience of the healthcare supply chain in a pandemic: Evidence from Europe during the COVID-19 crisis. Journal of Purchasing and Supply Management, 100748

[76] Szabo, N (1997). Formalizing and securing relationships on public networks. First Monday, 2( 9): 1–33

[77] Tian, F (2016). An agri-food supply chain traceability system for China based on RFID & blockchain technology. In: Proceedings of 13th International Conference on Service Systems and Service Management. Kunming: IEEE, 1–6

[78] Tu, M (2018). An exploratory study of Internet of Things (IoT) adoption intention in logistics and supply chain management: A mixed research approach. International Journal of Logistics Management, 29( 1): 131–151

[79] Tyan, I Guevara-Plaza, A Yagüe, M I (2021). The benefits of blockchain technology for medical tourism. Sustainability, 13( 22): 12448

[80] Tzounis, A Katsoulas, N Bartzanas, T Kittas, C (2017). Internet of Things in agriculture: Recent advances and future challenges. Biosystems Engineering, 164: 31–48

[81] Uthayakumar, R Priyan, S (2013). Pharmaceutical supply chain and inventory management strategies: Optimization for a pharmaceutical company and a hospital. Operations Research for Health Care, 2( 3): 52–64

[82] WangC H (2022). The epidemic prevention policy of “life first” and “dynamic clearance” has achieved remarkable results (in Chinese)

[83] Wang, L Deng, T Shen, Z J M Hu, H Qi, Y (2022). Digital twin-driven smart supply chain. Frontiers of Engineering Management, 9( 1): 56–70

[84] Yadav, S Luthra, S Garg, D (2021). Modelling Internet of Things (IoT)-driven global sustainability in multi-tier agri-food supply chain under natural epidemic outbreaks. Environmental Science and Pollution Research International, 28( 13): 16633–16654

[85] Yaroson, E V Breen, L Hou, J Sowter, J (2019). Resilience strategies and the pharmaceutical supply chain: The role of agility in mitigating drug shortages. In: Barbosa-Povoa A, Jenzer H, de Miranda J, eds. Pharmaceutical Supply Chains: Medicines Shortages. Cham: Springer, 249–256

[86] Yaroson, E V Breen, L Hou, J Sowter, J (2021). Advancing the understanding of pharmaceutical supply chain resilience using complex adaptive system (CAS) theory. Supply Chain Management, 26( 3): 323–340

[87] Yu, D E C Razon, L F Tan, R R (2020). Can global pharmaceutical supply chains scale up sustainably for the COVID-19 crisis?. Resources, Conservation and Recycling, 159: 104868

[88] Yu, X Li, C Shi, Y Yu, M (2010). Pharmaceutical supply chain in China: Current issues and implications for health system reform. Health Policy, 97( 1): 8–15

[89] Zahiri, B Zhuang, J Mohammadi, M (2017). Toward an integrated sustainable-resilient supply chain: A pharmaceutical case study. Transportation Research Part E: Logistics and Transportation Review, 103: 109–142

[90] Zamiela, C Hossain, N U I Jaradat, R (2022). Enablers of resilience in the healthcare supply chain: A case study of US healthcare industry during COVID-19 pandemic. Research in Transportation Economics, 93: 101174

[91] Zhang, X Zhao, J (2019). The impact of big data on supply chain resilience: The moderating effect of supply chain complexity. In: Proceedings of 18th Wuhan International Conference on e-Information Systems and Operations Management. Wuhan: AIS Electronic Library, 479–486

[92] ZhouX (2022). China’s prescription drug market size and policy analysis of the prescription drug market (in Chinese)

RIGHTS & PERMISSIONS

Higher Education Press