Complexity control in supply chain operations management. Empirical assessment of levers and strategies

This paper presents the results of a two-year research program aimed at assessing how supply chain complexity can be measured, and which managerial levers can be used and tuned to control complexity and so to improve efficiency and effectiveness performances. This paper discusses three contents: first of all, it describes a process and supply-chain oriented methodology to measure companies’ complexity. Second, it describes the conceptual model developed in order to link company’s internal and supply chain complexity to the observed operative performances: this model is designed to consider the impact of managerial levers which could be activated in order to reduce (i.e. to filter) or to manage (i.e. to dampen the impact) of complexity, thus contributing to performance improvement. Finally, the paper discusses the application of the aforementioned model to an in-depth industry case study, involving 14 OEMs and suppliers in the Italian household appliance industry. Observed empirical results put forward a new interpretation perspective on the role of managerial levers in improving firm performances, i.e. through the control of supply chain complexity.