Drug Inventory Supply chain Management Using Blockchain

Abstract

The Drug Inventory & Supply Chain Management System using Blockchain technology is a novel solution developed to address the serious issues affecting the pharmaceutical supply chain such as counterfeit drugs, lack of transparency, inefficient tracking and data tampering. This can lead to significant adverse effects in the case of patient safety and violations of regulatory requirements. The proposed system utilizesblockchain as a solution to facilitate secure, immutable and decentralized data sharing across all involved parties–rangingfromdrug manufacturersand distributor stopharmaciesandhealthcareproviders. In the center of the solution is a blockchain-based ledger which securely stores all transactions and movements of drug inventory. Each drug batch is assigned an unique digital identity using QR codes or RFID tags and their entire journey from production to consumption is documented in real time on the blockchain. This end-to-end traceability provides both verification of accuracy in the supply chain and complete auditability of supply chain for regulators and healthcare organizations. Smart contracts are used to automatically execute some facets of the supply chain such as drug delivery, inventoryreplenishment,andpaymentsettlement.Smartcontractsenforcecertainconditions(i.e. confirmdeliveryofadrugormaintainaspecifiedtemperature)tocompleteagivenprocess.This improves the speed to market of the supply chain, reduces human intervention, and promotes more trust among supply chain partners through enforceable code. Also, with the introduction of IoT devices, the system can measure other environmental factors like temperature and humidity during storage and transportation, thereby ensuring the safe handling of highly sensitive medications and immediately putting in place preventive measures if such deviations occur. In addition, with the help of data analytics, the system will be able to predict the demand patterns, helpingusers measure their inventory levels to ensure they remain at their desired level while reducing waste. Blockchain combines with advanced supply chain management practices and technology to provide significant efficiency and security gains while improving patient safety and public health outcome. Blockchain represents an unprecedented development in pharmaceutical logistics – a new transparent, tamper-proof and efficient tool to manage drug inventory in today’s increasingly complex and global healthcare environment.

Introduction

Overview

The pharmaceutical supply chain faces major issues such as counterfeit drugs, lack of transparency, inventory problems, and delivery delays, all of which can impact patient safety and trust. To solve these challenges, a technology-driven supply chain system is proposed, integrating Blockchain, IoT (Internet of Things), and Smart Contracts to ensure transparency, traceability, and efficiency.

Key Features of the Proposed System

1. Blockchain for Transparency and Traceability

• Each drug batch is assigned a unique ID and logged on a tamper-proof ledger.

• All actions—from manufacturing to delivery—are securely recorded and visible to stakeholders (manufacturers, distributors, pharmacies, regulators).

• Enhances drug authentication and simplifies real-time audits and recalls.

2. IoT for Real-Time Environmental Monitoring

• IoT sensors track temperature and humidity during storage and transportation.

• Data is pushed to the blockchain in real-time, ensuring handling compliance.

• Alerts are triggered if conditions deviate from safe limits, preventing unsafe drugs from reaching patients.

3. Smart Contracts for Automation

• Automate critical processes like:

  • Order validation

  • Shipment release

  • Regulatory compliance checks

• Reduces manual errors, paperwork, and processing delays, while enhancing efficiency and trust.

Motivation

The pharmaceutical industry suffers from:

• Widespread counterfeit drug circulation

• Inefficient inventory management

• Poor data visibility among stakeholders

• Increased pressure during public health crises

The system addresses these by enabling real-time collaboration, data accuracy, and secure end-to-end tracking.

Objectives

• Develop a secure, transparent, and tamper-proof inventory management system.

• Ensure authentication of drugs and prevent counterfeit distribution.

• Enable real-time stock tracking, automated alerts, and batch-level traceability.

• Integrate IoT for environmental monitoring and smart contracts for process automation.

Methodology

• Build on a private blockchain network for security and access control.

• Record all actions (manufacturing, packaging, transport) as timestamped blocks.

• Use smart contracts to automate compliance checks and restocking.

• Deploy IoT sensors to monitor temperature/humidity, with web dashboards for stakeholders to track and verify drug status in real time.

Expected Outcomes

• Improved traceability and accountability in drug distribution.

• Reduced fraud, manual errors, and regulatory violations.

• Faster recalls, accurate demand forecasting, and efficient auditing.

• Enhanced patient safety through better monitoring of sensitive drugs.

• Stronger stakeholder trust and a more resilient healthcare ecosystem.

Conclusion

The medicine Inventory Supply Chain Management System using blockchain technology offers a transformative result to long- standing issues in the pharmaceutical force chain. By icing translucency, traceability, and invariability, the system combats the serious problem of fake medicines and enhances the overall trustability of medicine distribution. Every step in the force chain is securely logged and empirical, promoting responsibility among stakeholders and adding patient safety. Throughtheintegrationofsmartcontracts,thesystemintroducesrobotizationintocriticaloperations like payload confirmation, force updates, and compliance checks. This not only reduces homemade workload and mortal error but also ensures that deals are executed under predefined, tamper- evidencerules. The combined use of blockchain, IoT, and robotization leads to a smarter, briskly, and more responsive pharmaceutical force chain. It facilitates better decision- timber, supports nonsupervisory compliance, and improves the capability to snappily recall compromised products when necessary. Overall, this system contributes to erecting a more secure, effective, and case- centric healthcare structure.

References

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Copyright

Copyright © 2025 S Nithya Sai, SK Abdul Shakir, SK Akbar Basha, M Chandra Sekhar , Mr. Rama Murthy Ketha . This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.