ASSESSMENT OF CRITICAL POINTS IN THE TRANSFORMATION OF SMALL-SCALE MANUFACTURING INTO A SUPPLIER FOR NATIONAL RETAIL CHAINS

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Authors: Kateryna Lapuzina
Cited by: 0

Abstract

In Ukraine's wartime economy of 2024-2025, micro-manufacturing enterprises are micro-enterprises with fewer than 10 employees, operating mainly in the food processing, agro-processing, and light industry sectors.These small producers account for approximately 16.5% of total employment and form a critically important component of regional recovery clusters supported by government strategies and international donor programs [1].The strategic importance of integration with national retail chains for small producers during 2024-2025 cannot be overestimated, as leading Ukrainian retailers such as Silpo, ATB, and Novus, are actively implementing direct procurement strategies to diversify their product ranges and capitalize on strong consumer preferences for products "made in Ukraine" [2].This integration approach supports recovery efforts by providing micro-producers with access to stable distribution channels.Achieving successful integration of micro-producers into national retail chains requires a comprehensive approach, where six critical transformation points determine a successful transition: digitization of operations, development of flexible supply chains, compliance with quality standards, attraction of financial support, building a supplier's reputation, and developing omnichannel readiness [3].These transformation points address the complex challenges of unstable demand, damaged infrastructure, power blackouts, labor shortages, and limited access to working capital that characterize Ukraine's current operating environment.Let us take a closer look at each of these critical transformation points, assessing their impact on the ability of micro-producers to become reliable suppliers to national retail chains.Digitalization is a fundamental prerequisite for competitiveness, where microproducers must create comprehensive e-commerce capabilities that go beyond basic online stores and include omnichannel integration and real-time inventory management.Cloud platforms such as Shopify, Wix eCommerce, and Square Online provide the basic infrastructure needed to meet retailers' expectations, offering built-in connections to major marketplaces and social commerce channels, including Facebook, Instagram, and TikTok [4].

Fields of Study & Subjects

Quality and Management Systems Transport and Logistics Innovations Economic and Technological Systems Analysis

Publication details

Pages
136–140
Publication date
7 January 2026