Complexity and the supply chain
5 important questions on Complexity and the supply chain
What are the sources of supply chain complexity?
- Network complexity
- Process complexity
- Range complexity
- Product complexity
- Customer complexity
- Supplier complexity
- Organisational complexity
- Information complexity
Solutions to SC complexities
SCRM (including cyber security)
• Increased visibility
• Increased collaboration
• Alternative suppliers (nearshoring, onshoring)
• Inventory levels and positioning (safety stock)
• Monitor logistics options and costs
2.
How can product design impact supply chain complexity?
- Time-to-market and time-to-volume
- Added complexity through lack of commonality
- Increased replenishment lead-times
- Supply chain vulnerability
- After-sales support
- Late stage customisation
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Describe the five-stage process to mastering complexity
- Understand the sources of complexity
- Which elements of complexity add value and which do not?
- Seek to eliminate the non-value adding complexity
- Minimise the cost of the value-adding complexity
- Continuously monitor and review the cost/benefit of complexity
How should complexity management be balanced?
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