CARDINAL CHAINS LEVEL 70 UPDATE

Level of transparency within the system – As the Blockchain based system will continuously collects information at each step, there will be high level of transparency. The choice depends upon the following parameters – Both have their advantages and disadvantages. The first decision that Cardinal Health needs to make after deciding on Blockchain as technology is whether to choose between Public Blockchain Network and Private Blockchain network. Public Blockchain Network or Private Blockchain Network Secondly the reconciliation process has to be done manually which is - time consuming, cost increasing, labor intensive process, riddled with numerous inconsistencies at each level. This result in – higher transaction costs, low level of satisfaction among players within the Healthcare sector, and people waiting for payments. Even with the automation, approximately 70% of the invoices in the Biotechnology & Drugs require reconciliation efforts. These updates are often independently calculated and a large number of them are already automated. The multiple management information systems problem is not only the problem of Cardinal Health in the Healthcare industry, but also that of all the other major players in the sector.ĭata Complexity in Supply Chain ManagementĮach shipment requires more than 200 data points such as – stop locations, fuel requirements, temperature, load, and other product related features, on the invoice. It is easy to both build system to streamline and train truckers who are directly working for the company – inhouse logistics providers, than training the third party freight providers because they are working with multiple players in the Healthcare industry. Most organizations have moved towards a hybrid logistics, where part of the logistics and transportation is done by with in-house logistics and transport operations or captive vendors, and part done by third party freight providers. Hybrid Logistics and Transportation Solutions This often results in additional costs to Cardinal Health in form of – expensive reconciliation efforts, delay in payments to the supply chain partners, and poor experience to the final customer.

CARDINAL CHAINS LEVEL 70 UPDATE

Logistics and transportation industry is marred with vast data discrepancies at every end of the supply chain – payment processing delays to freight carriers, invoices delay at vendors’ end, slow update of inventory in the warehouses, and systemic disruption because of macro environment.

Challenges faced by Cardinal Health and other players in the Healthcare industry

Cardinal chains level 70