TOKYO: Mitsubishi Logistics has harnessed the power of blockchain to allow clients to track outsourced pharmaceutical shipments, as a way to guarantee the products are kept under proper conditions the whole way.
The company in 2015 launched a refrigerated delivery service that meets stricter standards for the transportation of drugs, called Good Distribution Practice (GDP), which the European Union, Japan and other governments worldwide have been adopting. Its new ML Chain platform allows clients to see when shipments changed hands, as well as their temperature and other information.
Blockchain technology allows the data to be shared widely through the cloud in a way that is tamper-proof. The use of distributed ledgers also means any system problems will not spread to the entire platform, and that the data remains secure.
ML Chain can currently track deliveries from pharmaceutical factories and logistics hubs to wholesalers. Japan’s Takeda Pharmaceutical is already using it for some of its products.
Mitsubishi Logistics aims to eventually expand ML Chain to cover deliveries from wholesalers to hospitals and pharmacies, as well as international shipments. It sees the platform as a way to help with quality assurance and inventory management, as well as a safeguard against fake drugs.
The Mitsubishi group company will also consider using ML Chain to help build new, safe direct-to-consumer distribution channels, and will analyse data collected through the platform to optimise supply chains.
Mitsubishi Logistics’ efforts come as authorities worldwide demand stricter transportation requirements for drugs so that they remain safe and effective. The Japanese government adopted GDP guidelines in 2018. Demand for the proper transportation of vaccines and other pharmaceuticals has only grown with Covid-19.
In late October, Mitsubishi Logistics completed a medical products distribution centre in Ibaraki, a city near Osaka. This month, the company said it would expand its GDP-compliant service infrastructure for delivering medical products at room temperature. To this end, it will add to its fleet of delivery vehicles to increase the number of destinations.
According to the Yano Research Institute, the logistics outsourcing market for the pharmaceutical and medical equipment manufacturing industries in fiscal 2020 totalled ¥110 billion (US$778 million), up 3.8% from the year before.
As the volume of pharmaceuticals being shipped and the rate of outsourcing to distribution companies continue to rise, there is a growing movement to choose distributors based on their quality-control systems.
