Impact pathways: unhooking supply chains from conflict zones—reconfiguration and fragmentation lessons from the Ukraine–Russia war

Траектории воздействия: отсоединение цепей поставок от зон конфликтов — уроки реконфигурации и фрагментации на примере российско-украинской войны
Jagjit Singh Srai, Gary Graham, Remko van Hoek, Nitin Joglekar, Harri Lorentz
2023-08-19

Ukraine–Russia warconflict zonesdecouplingsupply chain fragmentationsupply chain reconfiguration
Purpose The new geopolitical context being created by the Ukraine–Russia war highlights the need for structured approaches to planning and implementing unhooking strategies and developing associated supply chain reconfigurations. Design/methodology/approach The authors have interviewed six supply chain executives to begin the investigation of the key supply chain risks and disruptions caused by the Ukraine–Russia war. Findings Initial corporate responses to the Ukraine–Russia conflict were significant, perhaps unprecedented. However, as institutional, corporate and consumer sentiment influence reconfiguration responses, the authors have identified three supply chain pathways that underpin unhooking actions. Research limitations/implications The authors selected respondents from each different type of supply chain interaction with the conflict zone (inbound, outbound and within), covering both components/intermediate products and finished goods. Therefore the sample size was small and designed to fit in with the spirit of the pathway initiative. Practical implications The authors reinforce the key role of procurement and supply chain management in not just supply but also in downstream markets that can accelerate decoupling and mitigate the associated supply chain disruptions. Social implications The authors observe that supply chains are increasingly being weaponized, as external institutional and consumer influences necessitate companies to unhook from conflict zones, countries, or regimes. They are becoming increasingly intertwined with foreign policy. Originality/value The novelty of the contribution to the associated discourse is the perspective that after decades of increasing globalization and geographic dispersion of supply chains, the unhooking effort is not limited to a firm and its internal operations but involves multiple stakeholders. For instance, the full extent of the complex linkages of supply chains, networks and relationships that touch conflict zone geographies must be considered, particularly those that are incompatible with the firm's values and aims, including those of their stakeholders.
1
Interviews with six supply-chain executives identified three pathways underpinning supply-chain unhooking and reconfiguration actions.
2
Procurement and supply-chain management influence both supply continuity and downstream markets, helping accelerate decoupling and mitigate associated disruptions.
3
Reconfiguration responses are shaped by institutional, corporate, and consumer sentiment, not solely by firms’ internal operational decisions.
4
The Ukraine–Russia war triggered significant, potentially unprecedented corporate supply-chain responses and motivated strategies for unhooking from conflict zones.
5
The study’s small, purposive sample covers inbound, outbound, and within-conflict-zone interactions involving components, intermediate products, and finished goods.
6
Unhooking extends beyond individual firms to involve multiple stakeholders across complex supply-chain networks, increasingly linking supply chains with foreign policy and weaponization.

Supply chains interacting with the Ukraine–Russia conflict zone

Supply-chain reconfiguration, fragmentation, and unhooking pathways in response to war-related risks, disruptions, and stakeholder pressures

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2023-08-19
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Authors
Jagjit Singh Srai
Gary Graham
Remko van Hoek
Nitin Joglekar
Harri Lorentz
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