Potential of Smart Contracts in the Pharmaceutical Supply Chain of Belarus

Abstract

Timely supply of quality pharmaceutical products is seen as not only an important aspect of healthcare system but also a matter of national security. Taking into account the social orientation of the pharmaceutical business, states impose special requirements for the safety, effectiveness, quality, conditions for the sale, transportation and storage of medicinal products. These requirements are not always fulfilled, which gives room for the technology to step in and assist. The aim of this paper is to analyze how smart contracts can help in addressing pharmaceutical supply chain issues with a focus on Belarus, which is the first country in the world to explicitly state that smart contracts are legal. This research uses a case study methodology to examine the potential for implementation of smart contracts in the supply chain of pharmaceutical products, the barriers for that and the possible influence of smart contracts on various stakeholders. Data collection was organized through document review and expert interviews. Results indicated that there are weak spots in the current pharmaceutical supply chain process, such as different kinds of errors in supporting documentation, quality defects and failures in climate control systems. Some vulnerable points in supply chain could be eliminated by smart contracts, for example, faults in maintaining temperature regime during transportation. The study also reveals a number of challenges for implementing smart contracts, such as resistance of users, bureaucracy, costs, the necessity for a lot of participants to be a part of a single network. In this regard, the study went on to propose a pilot project for implementing smart contracts in pharmaceutical supply chain.