A model to determine complexity in supply networks

Purpose - The 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 ident...

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Bibliographic Details
Published in:Journal of manufacturing technology management 2012-01, Vol.23 (8), p.1015-1037
Main Authors: Gerschberger, Markus, Engelhardt-Nowitzki, Corinna, Kummer, Sebastian, Staberhofer, Franz
Format: Article
Language:English
Subjects:
Business
Collaboration
Complexity
Cybernetics
Investigations
Literature reviews
Logistics
Management
Mathematical models
Networks
Studies
Suppliers
Supply chain management
System theory
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Summary:Purpose - The 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 approach - This 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.Findings - This 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 implications - Due 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 implications - Applying 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 value - Unlike typical current complexity evaluation approaches, the proposed model respects rapid and continuous applicability, profound conceptualisation and practical feasibility.
ISSN:1741-038X
1758-7786
DOI:10.1108/17410381211276853