A model to determine complexity in supply networks

• 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
• ISSN: 1741-038X; 1758-7786
• DOI: 10.1108/17410381211276853

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.