IBM, KPMG, Merck, Walmart team up for drug supply chain blockchain pilot

IBM announced its latest blockchain initiative today. This one is in partnership with KPMG, Merk and Walmart to build a drug supply chain blockchain pilot.

These four companies are coming together to help come up with a solution to track certain drugs as they move through a supply chain. IBM is acting as the technology partner, KPMG brings a deep understanding of the compliance issues, Merk is of course a drug company and Walmart would be a drug distributor through its pharmacies and care clinics.

The idea is to give each drug package a unique identifier that you can track through the supply chain from manufacturer to pharmacy to consumer. Seems simple enough, but the fact is that companies are loathe to share any data with one another. The blockchain would provide an irrefutable record of each transaction as the drug moved along the supply chain, giving authorities and participants an easy audit trail.

The pilot is part of a set of programs being conducted by various stakeholders at the request of the FDA. The end goal is to find solutions to help comply with the U.S. Drug Supply Chain Security Act. According to the FDA Pilot Program website, “FDA’s DSCSA Pilot Project Program is intended to assist drug supply chain stakeholders, including FDA, in developing the electronic, interoperable system that will identify and trace certain prescription drugs as they are distributed within the United States.”

IBM hopes that this blockchain pilot will show it can build a blockchain platform or network on top of which other companies can build applications. “The network in this case, would have the ability to exchange information about these pharmaceutical shipments in a way that ensures privacy, but that is validated,” Mark Treshock, global blockchain solutions leader for healthcare and life sciences at IBM told TechCrunch.

He believes that this would help bring companies on board that might be concerned about the privacy of their information in a public system like this, something that drug companies in particular worry about. Trying to build an interoperable system is a challenge, but Treshock sees the blockchain as a tidy solution for this issue.

Some people have said that blockchain is a solution looking for a problem, but IBM has been looking at it more practically, with several real-world projects in production, including one to track leafy greens from field to store with Walmart and a shipping supply chain with Maersk to track shipping containers as they move throughout the world.

Treshock believes the Walmart food blockchain is particularly applicable here and could be used as a template of sorts to build the drug supply blockchain. “It’s very similar, tracking food to tracking drugs, and we are leveraging or adopting the assets that we built for food trust to this problem. We’re taking that platform and adapting it to track pharmaceuticals,” he explained.