Burden or blessing in disguise: interactions in supply chain complexity

Abstract

Purpose While systems theory explicitly considers interactions as part of a system’s complexity, supply chain complexity (SCC) is mostly conceptualized and measured as a linear summation of several aspects. The purpose of this paper is to challenge the general understanding by explicitly investigating interactions between and across different types (detail and dynamic) and levels (plant, supply chain, environment) of SCC. Design/methodology/approach An exploratory multiple case study methodology is adopted drawing on in-depth semi-structured interviews with respondents from eight manufacturing plants in the food processing industry. Findings On the one hand, it is found that different types add and increase overall SCC. On the other hand, the study also shows the opposite: interactions between detail and dynamic complexity can reduce the overall SCC experienced. Additionally, the findings highlight the specific food processing characteristics such as the variability of quality and quantity of raw materials that underlie interactions between types and levels of SCC. Originality/value This study adds to theory by empirically showing that interactions across and between types and levels do not automatically increase, but might also reduce SCC. As such, the findings contribute new detail to the concept of SCC: aspects of complexity do not necessarily add up linearly. Additionally, this study is one of the first to demonstrate how specific contextual aspects from the food processing industry relate to SCC.

Embracing supply base complexity: the contingency role of strategic purchasing

“…De Leeuw et al , 2013), systems theory (e.g. Bode and Wagner, 2015; Bozarth et al , 2009; Dittfeld et al , 2018), complex adaptive systems (e.g. Choi and Krause, 2006) and social network theory (e.g.…”

“…Supply chains have become increasingly complex due to heterogeneous customer demands, expanding product portfolios and the escalating volatility of global supply bases (Bode and Wagner, 2015; Bozarth et al , 2009; Choi and Krause, 2006; Lu and Shang, 2017). From the perspective of business managers, supply chain complexity represents one of the most pressing issues in the corporate agenda (Bode and Wagner, 2015; Dittfeld et al , 2018; PricewaterhouseCoopers, 2015), being often associated with detrimental outcomes such as increased supply chain disruptions, higher costs and delivery problems (Bozarth et al , 2009; Brandon-Jones et al , 2015; Vachon and Klassen, 2002). Such complexity can stem from internal operations or external actors in the supply chain (Bozarth et al , 2009; Dittfeld et al , 2018).…”

“…From the perspective of business managers, supply chain complexity represents one of the most pressing issues in the corporate agenda (Bode and Wagner, 2015; Dittfeld et al , 2018; PricewaterhouseCoopers, 2015), being often associated with detrimental outcomes such as increased supply chain disruptions, higher costs and delivery problems (Bozarth et al , 2009; Brandon-Jones et al , 2015; Vachon and Klassen, 2002). Such complexity can stem from internal operations or external actors in the supply chain (Bozarth et al , 2009; Dittfeld et al , 2018). Concerning the latter, suppliers play a significant role in overall supply chain complexity (Brandon-Jones et al , 2015; Choi and Krause, 2006; Lu and Shang, 2017).…”

Static supply chain complexity and sustainability practices: A multitier examination

“…Many authors have explored how extended and interconnected SC systems can be affected by strong static complexity (e.g., Birkie, Trucco, & Campos, 2017; Dittfeld, Scholten, & Donk, 2018). SC complexity is crucial as it can impact performance in various ways.…”

Overcoming Barriers in Supply Chain Analytics—Investigating Measures in LSCM Organizations

“…While the multi-objective trade-off under the influence of various actors, tasks, and entities already indicates the need for advanced methods to support decision-making, further aspects increase this need. Dynamic vertical, horizontal, and diagonal interactions among actors create hard to control complexity [29], complexity increases the occurrence of disruptive events and, thus, operational and financial risks [30], and due to the focus on the customer, common methods for managing disruptive risks from other domains are potentially a poor fit to LSCM [31]. Further, besides disruptive events, volatility results in further mismatch of supply and demand [32], adding to the need for advanced methods to support decision-making.…”