INTEGRATION OF BLOCKCHAIN AND IoT IN THE FERTILIZER SUPPLY CHAIN: KAIZEN FRAMEWORK FOR TRANSPARENCY AND SUSTAINABILITY IN INDONESIA'S RICE PRODUCTION CENTERS

Abstract

The fertilizer supply chain servicing Indonesian agroindustrial production encounters persistent systemic inefficiencies. Lack of transparency and poor cargo traceability across complex maritime logistics networks severely impair the sustaining capacity of agricultural systems. Digitalization offers profound strategic solutions to tackle these structural weaknesses. This study evaluates the integration of Blockchain and Internet of Things (IoT) technologies within a Kaizen continuous improvement framework to enhance the performance of agro-input distribution. The research employs a quantitative methodology utilizing Partial Least Squares Structural Equation Modeling (PLS-SEM). The authors gathered primary empirical data from a purposive sample of 150 practitioners operating within the transportation and maritime logistics sector. Analytical findings confirm that integrating distributed ledgers with real-time sensor monitoring significantly amplifies supply chain transparency and accountability. The structural model yielded a robust explanatory coefficient proving that technological deployment directly optimizes logistical sustainability. A key contribution of this research highlights the insufficiency of digital infrastructure without institutional capacity building. The Kaizen philosophy functions as an essential mediator that empowers logistics stakeholders to iteratively adopt digital tracking mechanisms. The study concludes that combining hardware, software, and continuous human improvement creates a resilient logistical architecture capable of securing national fertilizer distribution. Future empirical validation expanding to end-point farmers remains highly recommended.

Keywords:
IoT, Technology Integration, Data Transparency, Sustainability, Kaizen, Blockchain.