Journal of Education and Social Sciences, Vol. 13, Issue 1, (June)
ISSN 2289-9855
MILITARY BLOCKCHAIN FOR SUPPLY CHAIN MANAGEMENT
Syarifah Bahiyah Rahayu
Norizam Jusoh RMN
Nur Diyana Kamarudin
Afiqah Mohammad Azahari
ABSTRACT
Counterfeit is a global problem where it has been growing gradually all over the world. The Global Brand Counterfeiting Report
predicts the total of global counterfeiting may reach USD 1.82 Trillion by next year. The report also reveals counterfeiting
products are ranging from household products to defence spare parts. Furthermore, Malaysia Ministry of Domestics Trade and
Consumer Affairs has seized various counterfeit products, including counterfeit spare parts. US Department of Defense
estimates there are about more than 15% of military counterfeit spare parts including weapons and vehicles. Military assets
should be at a high level of readiness at all times. The spare parts supplied shall be guaranteed in terms of authenticity to ensure
military assets are functioning properly at its best. Counterfeit spare parts are vulnerable to dangerous malfunctions. This study
is expected to avoid counterfeit military spare parts supplied to the military base to ensure all assets are functioning properly.
Therefore, the aim of this paper is to design a conceptual model of Military Blockchain. The main objective is to trace movement
of the spare parts from the first-tier supplier until delivered to the end customer. Military blockchain will improve the process of
current supply chain management. This technology notifies all involved parties on the movement of spare parts. Blockchain
transparency will assist multiple parties to track and trace blockchain records action at the same time without a loss of data.
Theferore, integrating blockchain in the current military supply chain management will facilitate all parties involved to track
and trace spare parts in a complex networked of military supply chains.
Keywords: Transparent, trace, cryptographic, hash, logistic
INTRODUCTION
Supply Chain Management (SCM) is a complex and extensive network. SCM involves the production and distribution process
and involves many parties. SCM is responsible for ensuring the movement of raw materials from the first-tier supplier until
delivered to the end customer as a final product. Before reaching end products, each product segment through a supply chain
series is called a multi-tier supply chain. Fig. 1 shows the eight key processes that need to be implemented within and across
firms in the supply chain.
Figure 1: Key supply chain business process (Lambert et al., 1988)
