The logistics system in the Armed Forces today is not solely military, but also has an economic aspect. The term military logistics has a wide range of meanings that depend on the perspective of experts and scientists who highlight logistical issues in their research papers and articles. For example according to the approved NATO definition, military logistics is the science of planning and carrying out the movement and maintenance of forces. The development of military logistics involves finding the most optimal, fastest and most qualitative ways of delivering supplies.

Military logistics in Ukraine was not well developed until recently, and the escalation of military operations in the east of the country highlighted the inefficiency of the Ukrainian Armed Forces and defense complex in providing quality military operations. The lack of ammunition, supplies, weapons, and equipment in sufficient quantities posed a significant challenge, and high-tech devices and software were also in short supply. Procurement was dependent on volunteers, and the lack of logistics expertise led to a logistical crisis in the field.

The urgency of the situation led to the development of the Ukrainian logistics system, which aimed to establish timely and high-quality technical equipment, communication, logistical resources, and functional infrastructure to ensure the success of tactical and strategic operations. The development of this system marked the origin and formation of military economic logistics in Ukraine.

Several projects and reforms were initiated, including the Institutional Reform of Procurement Project, the Electronic Purchases Reform Project, and the Automation of Accounting and Logistics in the Field of Supply of the Armed Forces of Ukraine Pilot Project. These projects aimed to improve the procurement process and automate logistics and accounting to ensure timely and efficient delivery of resources to the Armed Forces of Ukraine.

The Institutional Procurement Reform Project

The reform was necessary due to poorly timed and provided provisioning of material and subsistence support to the Armed Forces of Ukraine and the dispersal of functions between various structural divisions. The implementation process includes three stages:

1. reorganization of the department of public procurement and supply of material resources;
2. creation of the Center for the organization of material support to the Armed Forces of Ukraine, which will develop new standards and norms and implement an automated logistics system;
3. establishment of the Procurement Agency for housing support to military personnel.

The Electronic Procurement Reform Project aims to create an open and transparent system of purchases in the Ministry of Defense of Ukraine by adjusting and creating a platform for electronic auctions, document flow, and the Department of Purchasing website.

The Automation of Accounting and Logistics in the Field of Supply of the Armed Forces of Ukraine Project aims to reduce the admissible surplus, create a quick delivery system of material support, and reduce the human factor in the accounting process. It also aims to reduce logistic lag interval, ensure timely information exchange about supplies, and obtain reliable information about supplies quarterly.

To solve logistical problems related to information, companies are using Blockchain technology. Blockchain is a publicly available and unchangeable digital register where information is stored in interconnected blocks, increasing reliability. Ukrainian companies are successfully using blockchain technology for projects such as Rentberry and Ambisafe. The Cabinet of Ministers of Ukraine approved a draft for a blockchain land registry in 2017. The technology provides high reliability and the ability to monitor deliveries in real time throughout the logistics chain, and significantly reduces the time spent on processing documents, and, as a result, increases efficiency. It is possible
to create both open and closed systems. The experience of using blockchain technology in civilian logistics entails the implementing
this technology in military logistics.

Sources: “The basic terminology of the modern military logistics“, Lesia Kostiuchenko Dmytri Solomon The electronic scientifically and practical journal “INTELLECTUALIZATION OF LOGISTICS AND SUPPLY CHAIN MANAGEMENT”, v.1 (2020), ISSN 2708-3195 https://smart-scm.org

Issues of Military Logistics in Ukraine, Systemy Logistyczne Wojsk nr 50/2019, Yurii KORNIICHUK, Oleksandr SHKATULA, Vladislav SMAGA

ROHANOV, С. (2018). Blockchain is a breakthrough and key to future supply chains. Logistics: problems and solutions, 3(76), 25-27.