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How to Deal With Complexity in the Supply Chain
Supply chains rarely become complex overnight. Complexity usually accumulates gradually as businesses expand their product portfolios, enter new markets, add suppliers, increase customer expectations, and introduce new technologies. At first, every addition appears reasonable. A new supplier offers better prices. A new product attracts customers. A new warehouse shortens delivery distances. A new sales channel creates additional revenue. Then the interactions begin. More products mean more inventory decisions. More suppliers mean more lead-time variability. More markets mean additional regulations. More warehouses mean more stock transfers. More customer promises mean more service-level requirements. Eventually, the individual pieces become interconnected to such an extent that changing one part of the system can…


