Complexity transfer in supplier-customer systems

Abstract

This paper uses a multiple case-study methodology to investigate complexity transfer (CT) in manufacturing supplier-customer systems, leading to a new model of complexity transfer. An entropic-related complexity measure is applied to three supplier-customer systems, internally within each organisation and at their supplier-customer interface. The results are compared and integrated to provide cross-case analyses and insights. Although CT has been acknowledged in the literature to occur towards upstream supply chain (SC) partners, e.g. in the context of the bullwhip effect, this paper provides evidence that CT may also occur towards downstream SC partners. This study also highlights that complexity can be managed through significant and sustained operational interventions. Our new empirically-tested model of CT identifies four organisational types: Sink, Source, Equilibrium, and Boom or Bust, according to their transfer of internally-generated and externally-accepted complexity. This new model enables an in-depth representation of the transfer of complexity and of its impact on SC partnerships.Managers may use this CT model to develop complexity management insights and to identify structural and operational changesat organisational level, and systemic SC changes that may reduce the costs associated with complexity.

Order from chaos: A meta‐analysis of supply chain complexity and firm performance

“…As supply chains become increasingly complex, researchers and practitioners seek to understand SCC and its performance implications (Bode & Wagner, 2015; Huaccho Huatuco et al, 2020). In the present research, we sought to answer a fundamental question: What is the impact of SCC on firm performance?…”

Embracing supply base complexity: the contingency role of strategic purchasing

“…Recent studies advocate the need for a better understanding of complexity and how to best manage it (Fernández Campos et al , 2019; Giannoccaro et al , 2018; Huaccho Huatuco et al , 2020; Turner et al , 2018). This study responds to this call by examining both of these gaps.…”

“…Second, we contribute to the purchasing literature by demonstrating that the effect of SBC on purchasing performance is contingent on the level of strategic purchasing. Although the number of studies investigating the performance effects of SBC has seen a recent increase, there is still a dearth of research investigating how SBC can be effectively managed (Giannoccaro et al , 2018; Huaccho Huatuco et al , 2020; Turner et al , 2018). The limited number of studies about managing complexity mostly focus on the overall supply chain and adopt either case study or simulation methods.…”

“…A limited number of studies about managing the complexity in supply chains illustrate that managers adopt a variety of responses, ranging from practices that focus on reducing complexity and absorbing complexity (e.g. Aitken et al , 2016; Turner et al , 2018) to practices that transfer complexity to actors upstream or downstream in the supply chain (Huaccho Huatuco et al , 2020). Other studies highlight the moderating factors, such as the scope of managerial control (e.g.…”

Six Sigma Analysis as an Approach to Improve Quality of Corrugated Zinc Sheet Product

“…Communication and further actions with suppliers must be improved so that the quality of raw materials sent is uniform and in accordance with the specifications required by the company. So, the product defects caused by raw materials factors which not comply with company standards can be minimized (Huaccho Huatuco et al, 2020;Saghiri & Wilding, 2021).…”