Adaptation of supply chains to the challenges of martial law

Authors

DOI:

https://doi.org/10.31617/2.2023(45)01

Keywords:

supply chain, supply chain adaptation, losses of trade networks, nearshoring, onshoring, friend shoring, failure modes and effects analysis, risks

Abstract

Introduction. As a consequence of the wide­spread military aggression against Ukraine, sig­nificant structural changes and transformations have taken place at the global and national level, leading to a logistical crisis not only in Ukraine, but also in the European Union countries. It is important to determine the ways of forming adaptive, flexible supply chains that will ensure Ukraine’s economic recovery during the martial law and post-war period.

Problem. One of the urgent tasks in the conditions of an unstable environment is to substantiate a scientific and methodological tool for assessing the risks of the adaptive supply chain operation.

The aim of the article is to identify the problems associated with the supply chain for­mation during the martial law in Ukraine and provide recommendations on how to minimise risks in the logistics industry.

Methods. The general scientific methods of analysis and synthesis, comparison, selection, generalization and resulting systematization of information were applied.

Results. Under martial law in Ukraine, the logistics and trade industries have suffered the greatest losses. Enterprises are forced to apply new approaches to supply chain optimization, using new forms of cooperation, namely near­shoring, onshoring, friend shoring. It has been determined that retail trade networks actively use various methods of collaboration in the supply chain formation. The authors proposed measures to adapt supply chain formation in the post-war period. To eliminate possible risks in the operation of supply chains, a supply chain risk assessment using the FMEA method is proposed. 

Conclusions. In order to ensure adaptive supply chains, trade enterprises need to ensure the flexibility of the supply process, provide a rapid response to changes and strengthen the interaction with suppliers, search and optimiza­tion of ways of goods delivery and optimal placement of warehouse complexes. The propo­sed supply chain risk assessment methodology will help businesses to avoid supply chain risks.

Author Biographies

Roman SUSHCHENKO, State University of Trade and Economics

Postgraduate student at the Department of Trade Business and Logistics

Nataliia ILCHENKO, State University of Trade and Economics

Doctor of Economics, Professor, Head of the Department of Trade Business and Logistics

References

Perevezennja vantazhiv avtomobil’nym transportom za vydamy vantazhiv [Transportation of goods by road transport by types of cargoes]. https://ukrstat.gov.ua/operativ/operativ2021/tr/pv_avt/arh_pv_avt_21u.htm [in Ukrainian].

Vitlins’kyj, V. V., & Skic’ko, V. I. (2013). Konceptual’ni zasady modeljuvannja ta upravlinnja logistychnym ryzykom pidpryjemstva [Conceptual principles of modeling and management of enterprise logistics risk]. Problemy ekonomiky – Problems of the economy, 4, 246-253. http://nbuv.gov.ua/UJRN/Pekon_2013_4_32 [in Ukrainian].

Grygorak, M. Ju. (2017). Intelektualizacija rynku logistychnyh poslug: koncepcii’, metodologija, kompetentnist’ [Intellectualization of the logistics services market: concepts, methodology, competence]. Kyi’v: Sik Grup Ukrai’na [in Ukrainian].

Il’chenko, N., & Kochubej, D. (2017). Referentni modeli upravlinnja lancjugamy postavok pidpryjemstv torgivli [Reference models of supply chain management of trade enterprises]. Mizhnarodnyj naukovo-praktychnyj zhurnal "Tovary i rynky", 2 (24), Vol. 2, 62-71. http://tr.knute.edu.ua/index.php?option=com_content&view=article&id=1504&catid=122&lang=uk [in Ukrainian].

Krykavs’kyj, Je. V., & Chornopys’ka, N. V. (2012). Ukrai’na v global’nyh lancjugah postavok [Ukraine in global supply chains]. Logistyka: teorija ta praktyka – Logistics: theory and practice, 1 (2), 92-100 [in Ukrainian].

Harsun L., Patkovs’kyj S. (2020). Holodovi lancjugy postachannja prodovol’stva: determinanty upravlinnja i rozvytku [Cold food supply chains: determinants of management and development]. Visnyk Kyi’vs’kogo nacional’nogo torgovel’no-ekonomichnogo universytetu – Herald of the Kyiv National University of Trade and Economics, 2, 48-57 [in Ukrainian].

Zbytky rytejleriv Ukrai’ny vnaslidok agresii’ RF sjagnuly ponad 50 mlrd grn [The losses of Ukrainian retailers as a result of the aggression of the Russian Federation reached more than UAH 50 billion]. https://interfax.com.ua/news/economic/837888.html [in Ukrainian].

Rytejl v okupacii’: jaka uchast’ postygla magazyny ukrai’ns’kyh merezh pid chas tymchasovoi’ okupacii’ mist [Retail under occupation: what happened to Ukrainian chain stores during the temporary occupation of cities]. https://rau.ua/ru/news/ritejl-v-okkupacii-magaziny [in Ukrainian].

Supply chains are never returning to ’normal’. https://www.freightwaves.com/news/supply-chains-are-never-returning-to-normal [in English].

Jak zminylasja geografija rytejlu za rik povnomasshtabnoi’ vijny – doslidzhennja [How the geography of retail changed during the year of the full-scale war – a study]. https://ua-retail.com/2023/02/yak-zminilasya-geografiya-ritejlu-za-rik-povnomasshtabno%D1%97-vijni-doslidzhennya [in Ukrainian].

Ukrposhta razom z "ATB-market" budut’ dostavljaty produkty harchuvannja u pryfrontovi regiony [Ukrposhta together with "ATB-Market" will deliver food products to the frontline regions]. https://borgexpert.com/news/ukrposhta-razom-z-atb-market-budut-dostavliaty-produkty-kharchuvannia-u-pryfrontovi-rehiony [in Ukrainian].

Mastercard ta "Lavka Tradycij" zapuskajut’ projekt pidtrymky fudpidpryjemciv [Mastercard and "Traditions shop" are launching a project to support food entrepreneurs]. https://silpo.ua/about/press-center/press-releases/mastercard-ta-lavka-tradycij-zapuskayut-proiekt-pidtrymky-fudpidpryiemciv [in Ukrainian].

FMEA: instrument zmenshennja pomylok ta pokrashhennja procesiv [FMEA: a tool to reduce errors and improve processes]. URL: https://www.management.com.ua/qm/qm262.html [in Ukrainian].

Published

2023-03-23

How to Cite

SUSHCHENKO Р. ., & ILCHENKO Н. . (2023). Adaptation of supply chains to the challenges of martial law. "INTERNATIONAL·SCIENTIFIC-·PRACTICAL·JOURNAL·COMMODITIES·AND·MARKETS", 45(1), 4–16. https://doi.org/10.31617/2.2023(45)01

Issue

Section

LOGISTICS AND SUPPLY CHAIN MANAGEMENT