The impacts of Ukraine war on supply chain management (European Union)

• Main Author: Choo, Alda Ziwei
• Other Authors: Chiu Sai Hoi, Benson
• Format: Final Year Project
• Language: English
• Published: Nanyang Technological University 2023
• Subjects: Business::Operations management::Supply chain management
• Online Access: https://hdl.handle.net/10356/172824
• Institution: Nanyang Technological University

The war between Russia and Ukraine has caused profound disruptions in the global trade flow, significantly impacting the supply chain on an international scale. The unforeseen nature of this conflict caught many unprepared, amplifying its effects on the Global supply chain management. Given Russia's significant oil reserves and Ukraine's abundant agricultural resources, the war has significantly disrupted essential flows, particularly in energy and agricultural sectors, leaving countries scrambling to seek for alternative sources urgently. In collaboration with my team, our reports will examine the impact of the Russia-Ukraine War on major countries supply chain management, with a focus on Russia, Ukraine, China, and Europe. This particular report would dive into the implications of the Russia-Ukraine War on Europe’s supply chain management using a PESTLE analysis framework. The political impacts of the Russia-Ukraine War associated with Europe’s supply chain management include implementing tighter monetary policies to counter the War-induced inflation and the SWIFT ban on Russian banks to disrupt Russia's financial flow. The economic effect encompasses the implementation of Europe sanctions on Russia, a larger public expenditure incurred by Europe and disruptions in trade routes. Environmentally, the Russia- Ukraine War has propelled Europe’s transition towards cleaner energy alternatives used, creating a greener supply chain. Lastly, the War has resulted in shortage of crew labour and food security, these social aspects would slow the movement of goods and services within the supply chain in Europe. Through a combination of research, interviews and surveys, this research paper provides a comprehensive understanding of not just the overall impact but also the specific operational shifts experienced by companies engaged in trade with the affected regions. Particularly focusing on Europe, this research explores how businesses have adapted their operations in response to the turmoil, shedding light on the dynamic changes necessitated by the conflict. The findings show the significant challenges posed by the conflict to global supply chains, highlighting the importance of adaptation and resilience in the event of unforeseen geopolitical events. This research contributes to a deeper understanding of the multifaceted consequences of the Russia- Ukraine conflict on SCM and provides suggestions aimed at mitigating the impact on the supply chain through improved management practices such as promoting self-sufficiency of resources and strategies to protect its resource flows and price fluctuations.