Steering supply chains from a complex systems perspective

Abstract

Purpose – The purpose of this research is to systematically review the properties of supply chains demonstrating that they are complex systems, and that the management of supply chains is best achieved by steering rather than controlling these systems toward desired outcomes. Design/methodology/approach – The research study was designed as both exploratory and explanatory. Data were collected from secondary sources using a comprehensive literature review process. In parallel with data collection, data were analyzed and synthesized. Findings – The main finding is the introduction of an inductive framework for steering supply chains from a complex systems perspective by explaining why supply chains have properties of complex systems and how to deal with their complexity while steering them toward desired outcomes. Complexity properties are summarized in four inter-dependent categories: Structural, Dynamic, Behavioral and Decision making, which together enable the assessment of supply chains as complex systems. Furthermore, five mechanisms emerged for dealing with the complexity of supply chains: classification, modeling, measurement, relational analysis and handling. Originality/value – Recognizing that supply chains are complex systems allows for a better grasp of the effect of positive feedback on change and transformation, and also interactions leading to dynamic equilibria, nonlinearity and the role of inter-organizational learning, as well as emerging capabilities, and existing trade-offs and paradoxical tensions in decision-making. It recognizes changing dynamics and the co-evolution of supply chain phenomena in different scales and contexts.

Keywords

• Supply chain
• Complexity
• Complex adaptive systems
• Organization
• Management
• Steering