How is Blockchain Transforming Vaccine Distribution?

LeewayHertz
Product Coalition
Published in
5 min readFeb 22, 2021

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Blockchain in Vaccine Supply Chain
Image by Steven Cornfield on Unsplash

Blockchain, the distributed ledger technology, has disrupted every industry worldwide. As the technology moves towards its maturity, more varied potential applications, we get. From the financial sector to the healthcare industry, Blockchain benefits every existing sector of society. New innovative Blockchain-based solutions are being developed to bolster trustworthy vaccine distribution and serve the community at large.

This article discusses the challenges involved in vaccine distribution and how Blockchain aids the vaccine supply chain.

Challenges in vaccine supply chain

challenges in supply chain
Challenges in Vaccine Supply Chain (Source: https://www.leewayhertz.com/blockchain-vaccine-distribution/)
  • Expired vaccines
    The expiry of vaccines happens quite often. Generally, governments buy vaccines in bulk in a single purchase and thus, there’s a high probability of these vaccines losing their potential just while sitting in the warehouses.
  • Counterfeit vaccines
    It’s a challenge to tackle and control the manufacture, sale and existence of fake vaccines in the market. The intake of counterfeit vaccines or even water can be harmful and life-threatening. The fear of counterfeit vaccines was prevalent when the covid-19 vaccine was about to release. Blockchain handles such critical situations quickly and efficiently.
  • Cold chain failure
    When vaccines get exposed to a temperature out of the range of the manufacturer’s recommendation, the vaccines tend to lose their potency. This failure situation is known as “Cold chain failure.” The storage temperature for every vaccine is different and needs to be kept in the recommended range only. For example, suppose a vaccine’s recommended storage temperature ranges between -3 degrees and +10 degrees. In that case, exposure to a temperature below -3 degrees or above +10 degrees will cause them to lose their efficiency. Maintaining such precise storage conditions is essential and challenging.
  • Lack of resources
    Large scale distribution of vaccines requires ample resources for its development and distribution. For example, for the covid-19 vaccine, two doses of the vaccine are required by 7 billion people worldwide. To manage such a massive amount of resources (14 billion syringes, raw materials, suppliers, distributors, dedicated healthcare workers, etc.) becomes a tough challenge.

How does the Blockchain supply chain work for vaccine distribution?

Various stakeholders involved in vaccine development and distribution are:

  • Manufacturer
  • Supplier
  • Logistic service provider
  • Distributor
  • Healthcare organizations
  • Public

With easy monitoring of every vaccine through Blockchain, each link could track the entire vaccine development process. Moreover, health organizations could also follow the changes made and intervene whenever required to ensure proper functioning.

Step 1: Manufacturer places an order to the supplier for raw ingredients

The manufacturer places an order of raw ingredients to the supplier. The agreement between the manufacturer and supplier is written into a digital standard operational contract, i.e., Smart Contract. This Smart Contract between manufacturer and supplier may include the following:

  • Payment terms for settling invoices
  • Cost of raw ingredients as part of a specific order
  • Timescales of supplying items
  • Penalty and bonus clauses

Blockchain saves all the information generated by both supplier and manufacturer. For every info added to the Blockchain, a hash is generated associated with the data used later for tracking purposes. As the hash can never be altered, it ensures the integrity and security of data.

Step 2: Supplier provides the required raw ingredients

Supplier packs the raw ingredients with a unique RFID code (Radio Frequency Identification code). This RFID code is used to allow traceability of the products; anyone at any time can trace the source of the ingredients. The supplier provides these raw ingredients to manufacturers for vaccine production.

Step 3: Shipment created by the manufacturer is assigned to a logistics service provider

After completing the vaccine production, the manufacturer attaches a QR code to the packed shipment and sends it to the logistics for further processing. The Smart Contract between the logistics service provider and the manufacturer may state the following:

  • Invoice settlement
  • Cost of delivery
  • Penalty for damaged vials of vaccines

Step 4: Logistics provider delivers the shipment to the distributor

Through IoT-enabled logistics, the shipment safely reaches the distributor. Incorporated IoT devices provide the benefits of real-time tracking and analyzing the storage conditions of the vaccines. IoT sensors are embedded in vaccine cooling pallets and communication modules to gather and share data on humidity, temperature, light, etc. The vaccine distribution authority can check the shared data, track and verify the quality of vaccines.

Step 5: After verification, the distributor forwards vaccines to the HCOs

Once the distributor receives the shipment, the vaccines are verified for their quality and effectiveness. The distributor then forwards the shipment to the concerned healthcare organizations. The information about the quality of vaccines is updated in the Blockchain that everyone can access.

Step 6: Healthcare providers vaccinate the public

Finally, the HCOs verify the quality of vaccines once again and handover the vaccines to the health workers appointed for vaccinating people. Blockchain offers the facility to trace back each vial of the vaccine’s complete journey to ensure its integrity and quality standards. Such a transparent system helps to build trust among people and provides the system’s efficiency throughout.

Benefits that Blockchain provides to vaccine distribution

  • Safety and efficacy assurance
    A blockchain-enabled supply chain assures regular environmental monitoring of transportation and storage conditions. The quick recall traceability of the entire system ensures efficacy and builds trust.
  • Reduced risks
    A proactive mechanism for detecting and identifying risks, fraud, spoilage, or other unexpected occurrences helps deliver the vaccines readily and safely.
  • End-to-end traceability
    Blockchain provides real-time visibility of the whole distribution system and provides a chain of custody from manufacturing to administration, eliminating all the blind spots across public and private entities.
  • Collaborative development
    Blockchain allows researchers and doctors to take a collaborative approach to tackle difficult situations, especially the covid-19 pandemic situation. For sharing and distributing identified data at a global scale, Blockchain becomes a single reference point.
  • Quality control and waste reduction
    Due to some distribution issues, spoilage or supply chain losses, vaccines’ storage and transit often lead to considerable losses. Blockchain helps to mitigate such risks by allowing tracking and monitoring of each vial of vaccine efficiently.

Blockchain is a powerful technology that has the potential to provide relevant solutions to every possible problem. Organizations and concerned stakeholders understand the worth of Blockchain Development in their industry and have already started working in the direction of integrating the technology into their businesses.

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