LOGISTICAL CONSTRAINTS AND THEIR IMPACT ON THE FINANCIAL EFFICIENCY OF BAKERY SUPPLY CHAINS IN CONDITIONS OF INSTABILITY

Abstract

This study examines logistical constraints impacting the financial efficiency of bakery supply chains under conditions of instability caused by military actions in Ukraine. Key factors complicating logistics processes include infrastructure damage, increased transportation and warehousing costs, and demand volatility. The analysis reveals that these constraints significantly raise production costs, thereby reducing profit margins. Notably, damaged infrastructure, such as roads, bridges, and warehouses, disrupts the timely delivery of raw materials like flour and yeast, critical for bakery operations. Demand unpredictability, driven by population displacement and economic instability, complicates inventory management, leading to either overstocking or shortages. The study proposes strategies to mitigate these issues, including route diversification to bypass damaged infrastructure, adoption of digital tools for real-time supply chain monitoring, and partnerships with local suppliers to reduce reliance on long-distance transportation. Flexible inventory management systems are recommended to adapt to fluctuating demand. The use of digital forecasting tools is emphasized as a way to better align production volumes with actual demand. Moreover, creating contingency plans and buffer inventories is suggested as a practical risk mitigation approach. These solutions not only enhance operational stability but also contribute to improved customer satisfaction. By adopting these adaptive strategies, bakery enterprises can maintain service levels even under extreme uncertainty. Overall, the paper underscores the necessity for dynamic logistics planning and continuous evaluation of external threats. The findings highlight the importance of resilience and adaptability in logistics operations to maintain competitiveness in the bakery sector. The practical significance of the research lies in providing actionable recommendations for bakery enterprises to enhance supply chain efficiency, reduce operational costs, and improve financial outcomes despite external challenges. Scientifically, the study contributes by offering a framework for understanding logistical constraints in crisis conditions and their financial implications, paving the way for further research into adaptive logistics strategies for food industry enterprises. The conclusions emphasize that proactive risk management and innovative approaches are essential for ensuring the financial stability of bakery enterprises in unstable environments.