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Supply Chain Management In Coffee Retailing Industry


1.1 Part A: Review

Blockchain technology is used to establish a single source of truth in a number of industrial scenarios such as: agricultural food supplies, the coffee supply chain and generally across a number of logistics industries. The technology is also used in the aircraft industry to streamline the management of airmiles, the management of the air cargo supply chain, and anti-spoofing GPS systems.

By referring to a single scenario, summarise the critical features that enable blockchain technology to be used to establish a single source of truth and thus protect against counterfeiting in the supply chain of your chosen scenario.

1.2 Part B: Technical Report
Write a technical report which:
1. Describes the aircraft parts lifecycle for both new and recycled parts and identifies the parts of the lifecycle where industrial espionage and counterfeiting might pose a risk.

2. Evaluates how blockchain technology might support the process of, tracking, tracing and authenticating aircraft engine parts .

3. Despite what might appear to be speculative claims concerning the propensity for blockchain technology to become compromised and used in espionage , the overall consensus is that “blockchains distributed consensus mechanism prevents hacking” , and therefore the technology can present safeguards against espionage. Provide a critique of these opposing views.

When writing this report, be mindful that:
4. The jet engines manufactured by AJD are supplied to companies in multiple international jurisdictions.

5. The report is intended for the consumption of the board members of AJD.


Part A
1. Introduction
The “supply chain management” is an essential aspect in the Coffee retailing industry. The big giants always aim for providing similar quality products to their branches all over the world. Thus, they need high performance in supply chain management to deliver their raw materials smoothly. Presently, they have planned to implement "blockchain technology" to handle the "supply chain management” issues in the system. At present days, "blockchain technology" emerged as a useful tool in different sectors for handling various issues. The issues in the Coffee retailing industry like tracking the delivery of raw materials can be handled by implementing blockchain in the system.

2. Discussion of "Blockchain Technology" in Coffee "supply chain management"
2.1 Using Blockchainforcoffee "Supply-Chain industry"
The significance of "Blockchain technology" in the coffee "supply chain industry" is to reduce the problems in the industry. The most important factors for the coffee "supply chain industry" are to trackthe several materials geographical location of the orders, shipment and keeping the detailed record of the products in real time. Moreover,"Blockchain technology" also improves the coffee "supply chain" operating procedures in various ways. a. "Tracking the origin"- Participation of several peoplein the "supply-chain" operations, it is difficult to keep the account records in a proper manner. Moreover, the famous companies also sometimes faced difficulties to retrieve the proper data(Mattila, 2019). This escalates the "supply chain management" operating expenses, customer satisfaction issues, and reputation of the company name.

"Blockchain" have the capability for "Real-Time tracking" of the overall "supply chain management" operationswhich restricts the intruders to conduct fraudulent activities between the coffee "supply chain" industry.

b. "Reduction of cost"--Blockchainrestricts a "third-party" to involve into the "supply chain" operations." This improves the cost efficiency and tampering of the product during "supply chain management" operations

c. "Scalability"-According to its complex nature, coffee"supply chain" industries includes a huge sizeof database(Tribis, El Bouchti, & Bouayad, 2018).Blockchain provides all of its users to access its database from multiple geographies across the world.

d. Blockchain as a single source of truth Blockchain technology contains the same copy of data or information over the network it is working and so for the Blockchain technology users it is known as a "single source of truth." There is no scope to conduct fraudulence activities, data tampering or modifying across this "immutable technology."

2.2 Application of Block Chain in the Coffee “Supply Chain” Industry
Block chain have several uses in the Coffee “Supply Chain” Industry. The major uses are listed below: -

a. Ensuring Traceability
Traceability is the main component in the Block Chain Technology. It ensures that the food has been properly delivered within time to the destination. The supply chain process not only comprises of manufacturers but also other suppliers and stakeholders(Behnke & Janssen, 2020). Traceability will help to send information to all the individuals about the delivery process. It will help in improving the supply chain management process(Behnke & Janssen, 2020). The supply chain managementprocess in the Coffee retailing industry is heterogeneous in nature. Thus, the process is complex and must follow a definite structure.

b. Controlling and Tracking the Inventory
Tracking the inventory is also an essential part of the Block Chain technology. The inventory tracking can be done through implementing proper tools in the inventory management(Min, 2019). Mitigation of the probable risk in the inventory management will help to track the system smoothly. There is a risk of hacking and compromising the privacy in the inventory management(Min, 2019). Those risk must be mitigated for the smooth service and efficient controlling. The risk can be mitigated by the use of Block chain technology(Min, 2019). It will help in providing high security to the management.

c. Proper communication between the different sections
Proper communication tools help in building the effective traceability system between the different users. The users can track the delivery system from source to destination by communicating with the other user(Behnke & Janssen, 2020). The users have specific roles and different vision in the delivery system. It must be maintained properly through the efficient communication system(Behnke & Janssen, 2020). Use of social websites for communication will help to ensure proper communication among the different users. Ensuring safety in the communication system also a part of the block Chain(Behnke & Janssen, 2020). It will help in preventing entry of third party in the system. Restricted and secured communication will help in preventing malicious activities in the system.

d. Maintaining the quality of products
The success of the supply chain management process is mainly depending on the quality of the product. If the quality is hampered then then the Company have to face huge loss(Miraz & Ali, 2018). In the case of Coffee “Supply Chain” Industry, the big giants always maintain same quality in their products all over the world. The system can be maintained by maintaining the quick delivery in the supply chain managementprocess(Miraz & Ali, 2018). The delay in the supply chain managementprocess leads to many consequences. The client or the supplier gets dissatisfied with the low-quality product(Miraz & Ali, 2018). The sale of the Company gets disturbed due to hampering in the quality.

e. Maintaining the safety of the raw materials
The raw materials safety is one of the main aspects in the supply chain Industry. The safety can be maintained by ensuring good quality of maintenance system. The safety can get hampered by the factors like temperature, climate and excessive intervention of external suppliers. The factors can make the supply chain managementsystem stop in case of worst cases. Those cases rarely happen in the supply chain management. The safety of the raw materials is an essential factor in the Coffee Retailing Industry. It must be controlled through implementation of Block Chain Technology.

f. Minimization in the Supply Chain cost
The Supply Chain Industry consists of heterogeneous and complex system. The cost sometimes gets over the budget by handling these features(Sun, Yan, & Zhang, 2016). The cost can be remaining under the budget by implementing proper tools in the system. The block chain technology is not such cost expensive and it can provide better quality services.?

Part B

In this part, the working methodology of "Blockchain", two major espionage and three counterfeiting factors have been discussed. The issues along their handling strategies have been explained to improve the performance of AJD. In this Project, Block chain has proved to be an effective tool for handling the issues in AJD.

1.1. Working methodology of Blockchain
"Blockchain" includes several blocks within a chain that contains the data. It is necessary to know about the working method of the technology across the "supply chain management industry"(Muhtasim, Fariha, Rashid, Islam, & Majumdar, 2018). Each block of the blockchain includes theinformation or data of the "supply chain industry" that are savedas "Hash Modifying an individual block will lead to modification of the "Hash." The most important parts of a blockchain technology are:

a. Hash-This is also stated as the" unique identity" of the block. Modification of a block will result tomodify this hash.

b. Data- This includes the total transactional data that are updated with time over the network.

c. "Previous Hash"-This is the hash of the previous block of the blockchain
This "Hash" part of the Blockchain technology provides the most security for the industries. When the intruder is trying to modify the block to conduct any fraud, they need to change the hash of the block and similarly it will change the hash of the previous block also(Ismailisufi, Popovi?, Gligori?, Radonjic, & Šandi, 2020). Now, the intruder needs to modify all the hashes of the several blocks which is extremely difficult and may be stated as impossible.

2. Discussion of two espionage and three counterfeiting factors
2.1. The two espionage factors

a. Supplier Sourcing- Sourcing of Supplier is one of the significant espionage issues in the aviation Industry. Supplier spying is often occurring in the area of the "supply chain management". Supplier is an integral part of the "supply chain management" in the aviation industry(Nowak, Ogonowski, & Kustra, 2019). Supplier is responsible for supplying the raw materials of different parts. The competitors in the market always try to spy the suppliers and want to know the parts detailing. Every Company in the aviation industry, like AJD, follows some unique materials for their parts. Spying on suppliers helps the competitors and hackers to know about the unique codes on the parts(Nowak, Ogonowski, & Kustra, 2019). It results in the massive loss of the Company. It is one of the significant risks in supply chain management.

b. Copying the technological Tools- With the emergence of industry 4.0, implementation of technological tools has increased in the field of the aviation industry(Hacioglu & Sevgilioglu, 2019). The supply chain management players in the aerospace industry have introduced modern tech tools like robotics in the system. The process of supply chain management has improved with the use of modern technologies. The competitors in the market keep spying on the Company's technological tools. AJD has suffered a lot due to this spying. Due to lack of loyal employees in the system, the technological tools have been exposed to the competitors(Hacioglu & Sevgilioglu, 2019). As a result, the Company's growth gets significantly affected. Copy of technological tools affects the process of the supply chain management.

Figure1 in supply chain management

Figure1 : - Pictorial Representation of Industrial Revolution Stages(Hacioglu & Sevgilioglu, 2019).

2.2. The three counterfeiting factors
a. Risk in Supply Disruption- Supply disruption is mainly caused by lack of communication with the suppliers. It is tough to trust suppliers in the aviation industry(Calatayud, 2017). Frauds can occur during the supply process. Sometimes, it has been observed that the products supplied are not similar to the products ordered. It occurs due to the fraud done by the illegal suppliers. The Supplier's business must be understood by the Company so that they continue their long-term relationship. Long term relationship is needed in the aviation industry to make the smooth process of the supply chain management(Calatayud, 2017). AJD always look for long term approach with the suppliers so that no counterfeits can occur in the system.

Figure2 in supply chain management

Figure 2: - The main process of supply chain management(Calatayud, 2017).
b. Raw materials sourcing for parts- Counterfeiting often occurs in the sourcing of raw materials by the suppliers. It affects the production of the Company significantly(Hartmann, 2018). The supply chain management of the Company gets disturbed due to lack of raw materials for producing the product. The Company follows the monopoly business approach. The Suppliers are responsible for providing the materials of aircraft parts. The aircraft parts, namely- Fuel sage, Wings, Powerplant and etcetera. They are the major components of an aircraft. The approximate lifecycle of these parts is 25 years. It helps in providing excellent performance behind working of an aircraft. Counterfeiting in this area results in a massive loss of the Company(Hartmann, 2018). The board of members in AJD always tries to maintain long term relationship with Suppliers.

Figure3 in supply chain management

Figure 3: - Connectivity of Supply Chain(Calatayud, 2017).
c. Skilled Workers Problem- In Aviation Industry, the skilled workers often got victimized by the competitors. The Competitors spies on the skilled workers and offer them a lump sum amount of money for knowing the secrets about the parts(Kazantsev, Pishchulov, Mehandjiev, & Sampaio, 2018). AJD being a leading company in the aviation sector, often face this difficulty. Many of their workers got victimized by the competitors. As a result, the processes of "supply chain" management got hampered. The "supply chain management" processes are directly connected to the production of the Company. If the number of skilled labors gets decreased, then the production will also get affected. It is challenging for an aviation company to gather skilled labors often(Kazantsev, Pishchulov, Mehandjiev, & Sampaio, 2018). Skilled labors help to develop new designing in parts that help in the growth of the Company.

3. Strategies for handling the factors
The particular strategy has been discussed to handle the two major espionage factors. They are listed below: -
a. Supplier Sourcing- Supplier sourcing is directly related to the supplying of aircraft parts to the Company. The Company can handle this espionage by the implementation of useful technological tools like blockchain in the system(Sandhu, 2018). Blockchain provides a decentralized process to handle all the process of supply chain management. Spying on Supplier can be mitigated by tracking the Supplier through an effective process. Blockchain helps to track the Supplier and its activities(Sandhu, 2018). The board of member can implement this technology to provide a smooth performance in the system.

b. Copying technological Tools- Robotics is one of the useful technological tools in supply chain management. "Blockchain" has a leading part in robotics(Hsieh & Ravich, 2017). Implementing robotics in a system needs a proper infrastructure of blockchain. Copying the technological tools can be mitigated by adopting security methods. Blockchain strategy can be the great companion of the board members of AJD. It will help to secure technological tools and prevent them from getting hacked(Hsieh & Ravich, 2017). The competitors in the market often try to hack the technological tools or copy them for misbalancing the system of the Company.

The particular strategy has been discussed to handle the three major counterfeiting factors. They are listed below: -
a. Risk in Supply Disruption- The risk in supply disruption is one of the counterfeits in the Company. The board of member can implement a cybersecurity system to handle such counterfeit factors(Brown, 2016). The blockchain system is one of the effective cybersecurity systems that helps to handle the different risk disruption. Mitigating the supply disruption will help to process the delivery of different parts smoothly. Long term approach with suppliers can be maintained by the use of "blockchain technology" in the system. The tracking and tracing of supplies from the suppliers can be done quickly as this is a decentralized process(Brown, 2016). Cyberspace is a part of cybersecurity that are often used in the aviation industry for mitigating the various risk. Thus, it can be an effective method of the blockchain to mitigate this counterfeit.

b. Raw materials sourcing for parts- Raw materials sourcing must be tracked through the useful digitalized tool. Blockchain can be used as a useful digitalized tool for handling the tracking of raw materials(Sheffi, 2018). The board of member must test the parts before delivering. Then the details must be stored at a decentralized system so that it can be traced for future purpose. The board of member must recruit specific developer for handling the method of blockchain in the system. It will help AJD to upgrade their system and provide essential parts to the clients(Sheffi, 2018). In this way, the counterfeit can be easily handled.

c. Skilled Workers Problem- Skilled workers get victimized due to lack of tracking on them. Tracking and tracing the workers is necessary to maintain balance in the system(Batuwangala, Ramasamy, Bogoda, & Sabatini, 2017). The board of members can implement effective technology like blockchain on the system. It will help to track and trace the workers and their activities(Batuwangala, Ramasamy, Bogoda, & Sabatini, 2017). Malicious activities by workers can also be mitigated by using this technology. Blockchain provides a transparent method which data mining. The process of data mining helps to keep the information on workers safely(Batuwangala, Ramasamy, Bogoda, & Sabatini, 2017). As a result, the workers will not get affected by espionage factors.

4. Main Issues with the AJD "supply chain management"



Transactional costs

As the intermediate institutions do not have any role in participating in the transactions, several parties can transact with "moving cash equity." Moreover, if any mistake occurs in the transaction, it will result in huge money loss as the mistakes are irreversible in this case.

Problems with adoption

It is a questionable factor that except the "bitcoin," blockchain is not adopted universally. The technology is still developing, and the larger organizations are not taking the risk to depend upon and using this technology.


The technology is complicated enough, and when used on large businesses, it will fail to perform due to the complications.

Performance Problems

Due to its P2P (Peer-to-Peer) nature of operating, transactions require the update of ledgers from all of the participants to complete the process, and it takes a long time.

5. The critical features that enable and protect against "counterfeiting in the supply"
In the present days, there are several companies those are providing this "Blockchain" facility for the airline companies that are secured and hassle-free(Di Vaio & Varriale, 2020). "Blockchain"is a secured approach to keeping the records of "aircraft maintenance" and authorizedverification of the spare parts and products and also location tracking the "supply chain management" fromits source to the destination. In this way, the "Blockchain technology" could prevent counterfeiting and espionage issues of AJD.

Figure4 in supply chain management

Figure 4: Notional Design Of Block Chain(Aleshi, Seker, & Babiceanu, 2019).

Figure4: Sample supply chain(Aaronson, Caffrey, Won, & Ahlquist).
Data attack by hackers or third parties in aviation industry-The airline industry needs to secure the passenger's safety, comfort and identity. There are numerous third parties, and hackers try to steal these data which contain the passenger information and identity. The airline industry needs to prevent this type of data attacks and has to safeguard the information of the passengers. In this 21st century, maximum passengers pay online for their tickets and the transaction is processed through the bank account of the individual. Furthermore, the whole process is stored in the database of the airline industry.

a. There is a probability for the hacker to capture all of these data and the passenger's bank account. Individuals may fall in danger for these types of activities. The airline industry uses Blockchain technology to resolve this issue. It secures the data by encryption method where the data is converted into codes(Reisman, 2019). So that modification of the data is not possible. Another advantage of Blockchain on supply chain management is that it is not centralized.

Decentralized technology does not trust any single point of control. When it transacts with another computer across the network, it imports the complete copy of data so that the process of the transaction must be secure. The Blockchain technology uses "innovative consensus protocol" across the related network. Also, the decentralized method has another advantage to prevent hackers. Another advantage is that the whole system is decentralized, and the same copy of the data is stored in multiple computers.

In case of any kind of malfunction for one or more computer occurs, the data will remain secured since it is saved on multiple computers. If any kind of hacking method is applied to change or modify the data, it will be rendered as the signature is invalid, and the original copy of the data will remain secure in other computers.

Figure5 in supply chain management

Figure 5: Blockchain entry(De Filippi & Hassan, 2018).

b. Usage of Blockchain in the tracking of cargo and baggage in aviation industry-In passenger flights, maintaining and securing luggage of each passenger is a hurdle for the company. A couple of problems may arise in this case because there is a random change in the custody from source to destination. Baggage loss and baggage missing problem leads to dissatisfaction of passengers and also loyalty issue.

The airline company faces a massive loss of money to compensate the passengers. However, using Blockchain technology, these types of mishaps could be prevented. This Blockchain technology provides a unique code to every baggage individually. This aggregate data is encrypted and stored securely across the Blockchain network. Here, the random change of custody starts takes place.

The luggage is scanned, then sent to the aircraft and finally to the destination or location from where the passenger will collect the luggage. So, the whole process is quite lengthy. With the help of Blockchain technology, this whole process is updated within real-time from the scanning of the luggage to sending it to the proper destination. With this technology on supply chain management, the unique hash code that the "Blockchain" restricts loss, stealing and missing of baggage thatreduces the cost for both airline authority and passengers(Aleshi, Seker, & Babiceanu, 2019). Another issue which the airline industry faces is overbooking of the ticket, and there are also some "real-life" incidents with this factor. If "Blockchain" is used for booking tickets, then overbooking could be prevented because of its "decentralized server".

c. Air traffic management security by Blockchain technology-There is many air-traffic services providers uses radar-based technology to keep records. They mandatorily need to keep privacy about the plans related to the air-force. The government strictly prohibits public distribution or leakage of these type of data in each country of this world. Also, the corporate plans of the aviation industry are included in this case.

However, the radar-based technology is not safe to security attacks and could be hacked by sniffing attack, spoofing and other types of penetrations. In this case study, it has been observed that data leakage of military secrets and industrial secrets related to the aviation industry is a not new issue. If Blockchain is used instead of radar-based technology, then the problem could be resolved. Blockchain uses "innovative consensus protocol" technology which protects the data with encryption and remains secured(Madhwal & Panfilov, 2017). Also, another issue is that if an aircraft loss the connection with the radar, it causes a significant problem to locate or reconnect it. Blockchain can prevent these types of mishaps. With the help of a real-time update, it can locate and track the flight, and that will be an excellent approach. The technology which the radar-based system uses is centralized and the data stored in a particular centralized system and cannot be recovered if lost. So the decentralized system of Blockchain prevents data loss in such type of incidents which is another great advantage of this technology. Storing the data in multiple computers prevents this data loss.

The new regulations created by FAA (“Federal Aviation Administration”) are "ASDI subscriber Level Blocking", ASDI stands for "Aircraft Situation Display to Industry". The ASDI providers always used to receive data from the FAA, which are extremely confidential. Blockchain technology is used to share these data so that the data will be encrypted, secured and hidden from public view and even hackers. Only the members with proper authorization will have access to the shared data.

Figure6 in supply chain management

Figure 6 :- Block chain for registered Aircrafts(Reisman, 2019).
d. Opposing views for Blockchain technology on supply chain management



Raw materials sourcing

Several metals like aluminum, steel, magnesium, and copper are needed to manufacture the aircraft's spare parts. The main problem is that an individual country cannot supply all the metals, and it is ordered from several countries, which is a big problem for the raw material source.

The sourcing can be done by the implementation of Block Chain Technology but there are some issues in the Block Chain Technology that must be mitigated first. Engagement of extra suppliers will result in complex system(Kumar & Mallick, 2018). It will be hard for Block Chain Technology to handle the system smoothly. The operation will get slower and as a result, implementation of Block Chain Technology will not work in the AJD.

Counterfeited products

With the increase of the airline industry, there is a massive demand for aircraft spare parts and a shortage of OEM (Original Equipment Manufacturer) products. The demand exists, and some fake organizations are filling the demand. With this counterfeit issue, the supply chain management is suffering from the counterfeited parts.

The counterfeited products can be traced by the Block Chain Technology but it needs proper tools. The fork problem sometimes creates issues in tracing the counterfeited products of the Company(Lin & Liao, 2017). The consensus also gets upgraded in the Block Chain with the upgradation of Technology. That time, issues occurred regarding the tracing of the counterfeited products.

Industrial issues

Industries are facing huge expenses due to the replacement of the failed and damaged parts and losing the brand reputation. Also, the sales are reducing with counterfeiting issues.

The sales issues can be addressed by the Block Chain Technology. However, the cost integration problem prevents Block Chain to handle such issues in the Organization(Kumar & Mallick, 2018). As the Block Chain is an emerging technology, thus it is upgrading and latest version is getting launched. As a result, the Block Chain technology has to face cost integration problem.

5. Conclusion
This Project is about COFFEE RETAILING, which is a leading industry in the international market. In Part A, the problems are being discussed related to the industry. The problems are counterfeiting of spare parts, the unsecured way of keeping the supply chain management records and the significance of Blockchain technology to prevent these mishaps.

Part B focuses on espionage of genuine spare supply, skilled worker problems, imitating or counterfeiting of technological tools. Also, the different types of hacking techniques against the supply chain management and other problems which the Coffee Retailing industry is facing are discussed. Implementing Blockchain technology in Coffee Retailing Industry can resolve these issues, which are also focused on this report. ?

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