A model to determine complexity in supply networks

Abstract

PurposeThe purpose of this paper is to further advance an existing supplier evaluation model for the purpose of identifying those supplier relations which predominantly threaten or worsen a company's performance. A defined basic set of parameters to determine complexity facilitates the identification of critical locations within a supply network (SN) under certain business conditions.Design/methodology/approachThis paper is based on a structured literature review in scientific periodicals in logistics/supply chain management between 2000 and 2009. Articles are analysed based on a structured framework and the identified complexity parameters are operationalised using quantitative and summable measures. The conceptual model is applied within a multiple case study in the Austrian agricultural industry.FindingsThis paper illustrates how complexity in SNs can be operationalised in a company‐specific configuration in order to achieve concrete managerial recommendations. Hence, the model allows evaluating SN‐partners based on selected parameters to determine the contribution of a single partner to the overall complexity.Research limitations/implicationsDue to the literature review executed and the case study approach chosen, the research may lack generalisability. Therefore, continued validation by means of implementing a greater amount of use cases in other companies and industries is advisable.Practical implicationsApplying the model, a company is able to determine tier‐1 to tier‐n suppliers which are predominantly affecting its business from a complexity perspective.Originality/valueUnlike typical current complexity evaluation approaches, the proposed model respects rapid and continuous applicability, profound conceptualisation and practical feasibility.

The impact of the supply chain structure on bullwhip effect

“…For any given SCN, each functional level comprises an echelon, and there may be numerous facilities within each echelon (Beamon and Chen, 2001). This definition of the SCN structure is in accordance with the growing literature on complex networks, in which the SCN is modeled as a network by a set of "nodes" that represent autonomous business units (firms or facilities), and a set of "connections" (links) that link these firms together in demand-supply relationships for the purposes of creating products or services (Hearnshaw and Wilson, 2013;Gerschberger et al, 2012;Wen et al, 2012;Kim et al, 2011;Li et al, 2010a;Li et al, 2010b;Li et al, 2009;Choi et al, 2001).…”

Managing Manufacturing Complexity Drivers on Performance – An Initial Study

“…Complexity is still one of the biggest challenges in manufacturing due to increased variety, market volatility and distributed global manufacturing [7][8]. Especially the identification of the most relevant network segments from a complexity perspective is a critical success factor for a company's competitiveness since it provides information to management about what kind of improvement measures might be most urgent and might deliver the most favourable impact in a certain economic situation [9].…”

Impact of Business Interoperability on the Performance of Complex Cooperative Supply Chain Networks: A Case Study

“…As a relatively new research discipline, CST can be seen as a metatheory that deals with the research of complex systems [74,75]. For example, in the SCM literature, it has been widely used as a theoretical lens for analyzing complex SCNs [76], providing theoretical frameworks for a number of SCN related publications (see, e.g., [54-58, 73, 77-80]).…”