Managing Supplier Risk in the Pharma Supply Chain - A Trust Your Supplier POV

The presentation discusses managing supplier risk in a pharma supply chain. It was presented in Boston at the ConV2X symposium on Sept 11.

1. Managing Supplier Risk in Pharma Supply Chain Can AI and Blockchain Complement Each Other? September 11. 2024 Boston . MA Mohan Venkataraman Copyright © 2024 CHAINYARD™️ 1 [email protected]

2. Talk Flow Background Some healthcare and Life Sciences experiences Healthcare and Pharma Supply Chain Analysis Supplier Risk and Management Potential for using AI Blockchain + AI Copyright © 2024 CHAINYARD™️ 2

3. Copyright © 2024 CHAINYARD™️ 3 About Chainyard US based company established in 1999 as IT People, has offices in India and the Philippines A boutique Digital Transformation Services firm providing consulting and advisory services 1 More than 50 projects and innovative solutions. Recognized by Everest Peak Matrix - 2023 2 and recognized by many bodies Built and operates “ Trust Your Supplier ”, an independent entity under Chainyard Supply Management Inc. 216 Copley Parkway Morrisville, NC 27518 https://www.linkedin.com/company/chainyard/mycompany/ https://www.everestgrp.com/peak-matrix/enterprise-blockchain-services.html

4. Some background CTO @ Chainyard leading blockchain and AI initiatives for the last 8 years Lead over 40+ innovative solutions and tools First engagement in Healthcare dates back to 1983 Tata Memorial Cancer Research Others include Pfizer, Medtronic, BCBS-MA Copyright © 2024 CHAINYARD™️ 4

5. Other Pharma Exposures Prior to GenAI and Blockchain Avior Bio – Drug Discovery Tranzyme Pharma (Now Ocera / Mallinckrodt) – Drug Discovery and GTM Customs & Border Patrol (CBP) – International Shipments & Tracking Opioids CiVentiChem (CRO) – Molecular Chemistry to support Drug Development Research Triangle Institute (RTI) – The stigma of getting treatment for Opioid Addiction Copyright © 2024 CHAINYARD™️ 5

6. Challenges of enabling Blockchain and AI Business Model Business Value Funding Model Incentivization and Incentive Models Operational and Transaction Cost Consortium Building Multi-Network Memberships, Interoperability, Governance Trust in models, algorithms, smart-contracts, predictions, outcomes Availability of Quality, Diverse and Unbiased Data Copyright © 2024 CHAINYARD™️ 6

7. What Customers expect? Chainyard Experience with Health Care and Supply Chain Supplier onboarding and managing third-party risk Resilient supply chain Track & trace and Provenance Vendor Master Management Identity & secure exchange of credentials and data Copyright © 2024 CHAINYARD™️ 7 Predictive & Generative AI Opportunity

8. The Supply Chain Pharma and Health Insurance Copyright © 2024 CHAINYARD™️ 8

9. The Pharma Supply Chain (Upstream) The initial stages of a pharmaceutical manufacturer supply chain includes sourcing, acquiring, and transporting raw materials to manufacturing facilities Copyright © 2024 CHAINYARD™️ 9 Typical Critical Supplier Categories Sourcing Raw Materials Contract Manufacturers Packaging and Labeling Logistics / Transportation Warehousing Distributors Stages of activities Supplier selection Procurement Inventory management Producing, refining, raw chemicals, APIs, and finished dosage forms (FDFs)  P ackaging, testing & quality reviews, and labeling

10. Simplified Supply Chain Process Copyright © 2024 CHAINYARD™️ 10 What is Supplier Management? - (supplychaintoday.com) Blockchain Supply Chain Transaction Management Data Sharing and Transparency Business Compliance Trade Finance Transparency & Visibility Rebate and Trade Promotions AI and ML Forecasting Machine Vision (Manufacturing and Distribution) Fraud Detection

11. Drug Manufacturing Process Copyright © 2024 CHAINYARD™️ 11 Various models from Vertically Integrated to Fully Distributed by the Pharma-Corp Blockchain Supplier Onboarding Track and Trace, and Provenance Decentralized Identity, Verifiable Credentials Wallet Proof-of-Quality AI and ML Research Insights Supplier Risk Management Location Specific Compliance (Regulatory Insights) Machine Vision

12. Health Insurance Supply Chain Copyright © 2024 CHAINYARD™️ 12 Insurance Products (Plans) Manufacturing and Distribution Blockchain Asset (Policy) Management Regulatory Reporting Decentralized Identity, Verifiable Credentials Wallet Contracts Management.. etc Master Data Management (SOR) Supplier Onboarding and Risk Management AI and ML Product Innovation Product Risk Prediction Supplier Risk Prediction Customer Insights

13. Supplier Management Potential Risks Financial risk Operational risk Cybersecurity Risk Legal risk Regulatory and compliance risk Reputational risk Climate Risk Geo-Political Risk Economic Risk ESG/DEI (Sustainability) Conflict Minerals & Child Labor Copyright © 2024 CHAINYARD™️ 13 Regulations Health Information Portability & Accountability Act ( HIPAA ) Good Manufacturing Practices ( GMP ) Drug Supply Chain Security Act ( DSCSA-US ) Foreign Corrupt Practices Act ( FCPA ) Uyghur Forced Labor Prevention Act The EU’s Digital Operational Resilience Act ( DORA ) Personal Information Protection Law (PIPL) The UK National Cyber Security Centre ( NCSC ) Guidance The General Data Protection Regulation ( GDPR ) The German Supply Chain Due Diligence Act EU Supply Chain Act & EU CSRD UK Bribery Act & Modern Slavery Act . . . and a 100+ MORE .. . . Data Analysts Dun & Bradstreet Moodys Resilinc Eco Vadis Standard & Poor's Morningstar Pitchbook ……

14. Trust Your Supplier Architectural overview Copyright © 2024 CHAINYARD™️ 14

15. Discovery & Onboarding Risk & Compliance Automation & Integration Data Governance Supplier Digital Wallet Reporting & Analytics Supplier Life-Cycle Management Critical to a Trusted Agile Supply Chain Blockchain-based, let’s suppliers do business easily with multiple customers AI driven, offers practical strategies for risk mitigation Easily find and engage new suppliers Rigorous ongoing Supplier Compliance Monitoring Easy integration with business ecosystems Clean, reliable data with ongoing controls

16. Multi-Channel │ Private-Ledger Capability │ Multi-Zone HA │ Permissioned Architecture Hyperledger Fabric Blockchain enabled Hybrid Decentralized Network with Fabric Certificate Authority  NodeJS & FabricSDK-based client Off-Chain Database based on MongoDB Globally resolvable Digital Identity W3C standards with Enterprise Digital Wallet Key Management Services support Supplier and human-user Public/Private Keys based on ECDSA Non-Invasive loosely-coupled integration framework Supports Third Party Marketplace Integrates with Enterprise ERPs and Solution Advanced UI/UX Framework built with React JS Analytics Database with PowerBI integration for dashboards and analytics TYS Application & Blockchain Client Analytics KMS Rich user interface Hyperledger Fabric Enterprise Blockchain Decentralized Identify Reports Dash Boards AI/ML OffChain Database Integration framework Marketplace ERP D&B, Moody's Resilinc Rapid Ratings Eco Vadis …. Supplier Risk Management enabled by Hyperledger Fabric TYS DID Integration

17. Typical AI Models and Use Cases The Objectives and Goals of an SLM are to enhance the Buyer and Supplier experience by leveraging AI and ML to simplify the Supplier Onboarding Process Enable an efficient Partner Risk Management Copyright © 2024 CHAINYARD™️ 17

18. Supplier Information Enrichment Cleansed & validated data Baseline risk assessment +133% profile accuracy Public Data Sources (free) Authoritative Data Sources ($) Touchless Supplier Risk Assessment Consensus driven 250+ data points Supplier recommendations Continuous Supplier Auditor Audit entire supplier base Specialized LM Automatically halt contracts Supplier Matchmaker Trusted Bot replaces today’s process Stimulates new business for suppliers TYS AI Evolution (Use cases) Transforming Supplier Management Onboarding Cycle Time Reduction Risk Reduction in Supplier Payments ELIMINATES Supplier Qualification

19. The Supply Chain Applying AI & Blockchain to Supplier Risk Management Copyright © 2024 CHAINYARD™️ 19

20. Main Categories in AIML Computer Vision: Creating new ways for computers to gain a higher level of understanding of the visual world around us Core Machine Learning : Building algorithms inspired by, and compatible with human cognition Embodied AI/Robotics: Developing embodied agents that assist and collaborate with people in virtual and physical spaces Generative AI : Creating AI systems that empower anyone to bring their imagination to life Natural Language Processing : Advancing the state-of-the-art in natural language understanding and generation Society & Responsible AI: Delivering AI research innovations and guidelines designed to help everyone benefit from AI Speech & Audio: Creating spoken language technology to help people build community and connect with others Enterprise Focus Supervised, Unsupervised , Reinforced , Natural Language Processing

21. Simplified SLM Architecture Retrieval Augmented Generation Use Cases User Services User Assistants such as Chat, FAQ Insights on Application Usage, Automated Self-Service Insights from Corpus of Documents such as Contracts and Research Location-wise Regulatory and Compliance Customer Services Automated customer service requests Resolve and/or route service requests Auto Translate request/response to appropriate languages

22. Simplified Architecture Generative Adversarial Network Use Cases Machine Vision in applications such as production and manufacturing, and supply chain security Augmenting images for resolution and clarity thereby aiding applications in product searches, detailing, and tracking product availability and fraud detection C ontribute significantly to product design . By leveraging existing images, they can generate new, unique images.

23. Application Specialized Models Tuning Models for Risk Predictions Copyright © 2024 CHAINYARD™️ 23 Trained by LM Vendors and Opensource Communities on Public and/or Proprietary Data Trained on TYS Knowledge such as interpreting by risk category, making risk calculations, interpreting a 3 rd Party scores, understanding supply chain Build a TYS Application Specific Database such as suppliers and their locations, their sustainability reports etc. Train on Prompting the LLM so that it gives GenAI Responses

24. Copyright © 2024 CHAINYARD™️ 24 A Patented Solution for Supplier Onboarding and TPRM