This study offers a comprehensive review of the practices that four manufacturing companies employ in their SC function to manage the structural and dynamic complexity of their product portfolio, internal SC, and supplier and customer bases. Moreover, leveraging the results of the inductive in-depth case studies, a classification of complexity management practices consisting of four clusters is advanced: variety reducing, confinement and decoupling, coordination and collaboration, and decision support and knowledge generation. Each cluster's distinctive logic and limitations are discussed and propositions on their managerial scope are introduced, therefore providing managers with relevant insights to design effective complexity management approaches in their organisations.
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.
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