Logistical Collapse or Optimization: Why Nestlé Is Temporarily Reducing Its Product Range in Kyiv

As stated by the CEO of Nestlé in Ukraine and Moldova, Roman Yanovich, in an interview with NV Business, the company has decided to temporarily reduce the assortment of products supplied to Kyiv, focusing exclusively on the most popular items.

Why the full assortment is disappearing from Kyiv store shelves

The main reason for this step are serious logistics and infrastructure problems. Because of enemy attacks and destruction, nearly all large retail networks have lost their centralized distribution warehouses in Kyiv and the region.

If producers previously delivered large wholesale batches to such warehouses from which goods were organized for distribution to points of sale, the situation has fundamentally changed:

Retail networks are forced to ask suppliers to deliver products directly to each individual store.

This scheme creates enormous pressure on transportation logistics.

If dozens of manufacturers simultaneously begin delivering small lots of goods by their own transport to every supermarket, the capital risks facing a true logistics collapse.

That is why Nestlé decided to temporarily forgo supplying the full width of the assortment, focusing on core, most in-demand products to ensure their constant availability on shelves.

Looking for a way out: how the company plans to solve the transport crisis

To avoid getting completely stuck in traffic jams and to ensure uninterrupted supplies, the company is currently exploring alternative solutions. In particular, the option of working with special distributors who can consolidate products from different manufacturers and deliver them to stores with a single truck is being considered.