Five Ways Blockchain Can Unblock The Coronavirus Medical Supply Chain

New hospital service opens for coronavirus patients at Samson Assuta Ashdod University Hospital in ... [+] AFP VIA GETTY IMAGES

The COVID-19 crisis has put unprecedented strain on the global supply chain of every product, but most acutely on critical medical supplies.

Companies in the US are converting supply chains to manufacture critical supplies such as personal protective equipment, COVID-19 Test Kits and ventilators. New open source movements are stepping up around the world to try address growing ventilator shortages.

Internationally, as COVID-19 cases in China have fallen, factories are slowly coming back online. This is at the same time as demand around the world is starting to skyrocket for critical supplies.

Multi-million dollar contracts that usually take months to negotiate, are being inked within hours. However, one of the key bottlenecks has been the lack of trust between demand, supply and the financing mechanism.

Governments and Health Systems around the world have particular requirements for each system (e.g., a confusing array of EU standards, US FDA standards, non-EU standards). These standards are being updated almost weekly to allow for more supplies to come online to meet forecast demand.

Governments around the world are battling to overcome legacy procurement systems that cannot move at the pace this crisis demands. This means countries around the world are missing out on supplies because they cannot get financial mechanisms in place in time (hours, rather than weeks).

Many suppliers around the world are insisting on upfront cash payment as they try to distinguish credible buyers from brokers and middle-men distributors. There has been widespread reports of fraudulent production and fraudulent claims across the medical and personal protective equipment supply chain. There are risks that equipment may not arrive in the right specifications at the right locations at the right time.

There is essentially a trust breakdown across the medical supply chain globally.

The 5 Trust Challenges facing the medical supply chain

1.      Product Requirements: standards vary across health systems and countries, creating confusion for what each factory should be producing.

2.      Supplier Credibility: there is uncertainty over which suppliers can produce equipment to the right quality, at the right production volume, at the right time.

3.      Financial Payments: factories and freight companies are requiring financial payments be made upfront as their workers slowly come back online, and they themselves are trying to prioritize credible purchase requests.

4.      Customs Certifications: Customs Certifications need to be rapidly validated to allow rapid transportation of equipment internationally, given that medical equipment is highly regulated.

5.      Transportation Tracking: transport options need to be validated to ensure the right shipments can move from factories to airports to distribution centers to health centers around the world, under the right conditions (e.g., temperature controlled for pharmaceutical products).