Three weeks of supplies: how Biosphere is rebuilding operations after warehouse destruction

Biosphere Corporation will review its assortment after the destruction of a warehouse complex in Dnipro by Russian drones. The company plans to reduce some of the goods with low sales and margins, and focus production resources on priority products.

Iryna Nesterenko, Vice President for Operations at Biosphere, told LIGA.net.

There are about three weeks of supplies left

After the Russian attack, the corporation’s production facilities were switched to 24-hour operation.

In other Biosphere warehouses, there is currently about three weeks of supplies. In order to use available resources more efficiently, the company decided to review the product matrix.

The reductions should primarily include items that demonstrate low sales and have low margins. The freed production and logistics capabilities are planned to be directed to categories that the company considers priority.

Goods have to be delivered directly to stores

The consequences of Russian strikes are not only felt by manufacturers. Logistics problems also arose in retail chains, some of which also lost warehouse capacity.

Because of this, some retailers asked Biosphere to change its usual delivery scheme.

The company began delivering products directly to stores, bypassing the distribution centers of retail chains.

In parallel, Biosphere is looking for additional warehouse space and new logistics partners to stabilize product supplies.

Russia destroyed a warehouse with an area of ​​​​20 thousand square meters

On August 4, Russian drones destroyed a warehouse complex with a total area of ​​​​about 20 thousand square meters in Dnipro. Part of the premises was used by Biosphere.

On the same day, Russian attacks also struck the logistics infrastructure of other large Ukrainian companies. The Rozetka warehouse was destroyed in Brovary, and the sorting center of Nova Poshta in Kyiv.

A series of attacks on warehouse infrastructure forces businesses to quickly restructure logistics, look for alternative areas, and change their supply chain. In the case of Biosphere, the result will also be optimization of the product range and concentration of production on the most popular product categories.