Can Blockchain Solve The Pentagon’s Logistics Problems?


The Pentagon is currently facing a logistics problem and the total value of the inventory that it manages totals around $100 billion. The Defense Department has to track every supplier, every part and type of inventory it operates and the sole scale of the amount of inventory it has to deal with creates a logistics problem.

Next Government reminded that in 2015, in a report by the Government Accountability Office, the Pentagon had obviously: “weaknesses in the management of its supply chain”. The serious problem for the Pentagon comes from the complexity and bulk of the inventory it manages. What is more, if there is mismanagement of any assets, there might be risk in accomplishing missions.

Blockchain may be the solution for the Pentagon’s logistics problem. As Blockchain has disrupted numerous industries already, such as the healthcare and even agricultural sector, logistics and supply chain issues are the next to be solved by the technology. The transparency and efficiency of blockchain has turned out to be useful not only in finance. Indeed, these two qualities are essential for managing big amount of inventory just like the Pentagon.

According to Next Government: 

“To preserve DoD’s sensitivity to offshore data, it might be possible to distribute the blockchain network over domestic military bases with sufficient computing capacity to host the blockchain servers. That way there is a local copy of the ledger in case of network issues, and it is distributed in a way that there are no central points of attack.

Though the venture of companies into blockchain technology is relatively new, it might turn out to be very successful, once the full capacity and efficiency of blockchain is understood and properly used.

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Can Blockchain Solve The Pentagon's Logistics Problems?

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