How do we view Supply Chain complexity?

Supply Chains are complex by nature. There are interdependencies in its various subsystems, coupled with inherent variability in each process. That’s how we define complexity, we can’t just wish it away.

Some teams try to simplify the whole system. They ignore interdependencies and go for optimising each function. It doesn’t work. We must optimize the whole system.

Many teams prefer to ignore variability and talk of one number. It leads them to perennial firefighting, lost sales and obsolescence. We must instead embrace the inherent variability and design dynamic buffers to absorb it.

Local optimisation and assumptions of certainty just don’t work. Go for global optimisation and dynamic buffers.