Blockchain-Enabled Drug Traceability Systems: Implications for Pharmacy Supply Chain Transparency

Published Paper: PDF

DOI: https://doi.org/10.63345/ijrmp.v14.i7.1

Dr Lalit Kumar

Professor, IILM University

Greater Noida, India

Abstract

Counterfeit, diverted, and substandard medicines continue to undermine patient safety, public trust, and economic sustainability across global pharmaceutical supply chains. Blockchain—characterized by distributed consensus, immutability, programmability (via smart contracts), and cryptographic auditability—has been heralded as a transformative infrastructure for end-to-end drug traceability and transparency. This manuscript critically examines how blockchain-enabled traceability systems can enhance visibility, accountability, and regulatory compliance from active pharmaceutical ingredient (API) sourcing to patient dispensing. Using a mixed-method design that triangulates a systematic literature review (2016–2025), expert interviews (n = 22), and a Delphi-informed survey of supply chain stakeholders (n = 214), we analyze technical architectures (public, permissioned, consortium), data governance models, interoperability standards (GS1/EPCIS, HL7 FHIR), and socio-legal constraints (data privacy, liability, cost sharing). Results indicate that blockchain adoption is most effective when embedded in a layered digital stack—IoT sensors, serialization/aggregation, off-chain storage, and AI-based anomaly detection—and aligned with incentive-compatible governance to prevent data spoofing and ensure stakeholder buy-in. We propose a pragmatic study protocol and research methodology for piloting blockchain traceability in pharmacy networks, followed by empirical results from a simulated deployment and stakeholder perception scores. The conclusions synthesize design principles, policy implications, and future research trajectories, demonstrating that blockchain is not a silver bullet but a powerful catalyst when combined with standards, regulation, and robust change management.

Extending beyond technical feasibility, the study foregrounds human and institutional factors that determine whether immutable ledgers translate into immutable trust. By operationalizing a Transparency Index and Stakeholder Trust Score, we quantify improvements in data completeness, timeliness, and perceived fairness after exposure to a prototype network. We further unpack governance dilemmas—who pays, who controls access, who is liable for bad data—and illustrate how consortium-based rulebooks and privacy-preserving computation (e.g., zero-knowledge proofs) can reconcile transparency with commercial confidentiality. Scenario-based cost–benefit and sensitivity analyses reveal that value accrues unevenly across actors unless incentive mechanisms are deliberately engineered. Finally, we map a future research agenda that integrates blockchain with digital product passports, advanced analytics, and global interoperability standards to sustain impact at scale. In doing so, the paper provides a holistic, empirically grounded blueprint for researchers, regulators, and practitioners seeking to build safer, smarter, and more transparent pharmacy supply chains.

Keywords

Blockchain, drug traceability, pharmacy supply chain, transparency, serialization, smart contracts, GS1 standards, IoT, regulatory compliance, counterfeit medicines

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