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

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Published

2023-03-23

How to Cite

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

Issue

Section

LOGISTICS AND SUPPLY CHAIN MANAGEMENT