Supply chain is a network of organizations. It is a complex system. According to Simon (1962), complexity makes any system, including supply chain, unpredictable, thus resulting in its task of day-to-day management that much difficult. In a complex system, a minor incident in one area has a potential to bring disaster in another. This article elaborates on several types of unpredictability in supply chain systems and also discusses their relationships with various levels of complexities involved in it. Minimizing the negative effects of complexity is very important. This article also discusses the role of modularity and flexibility, and the risk in managing supply chain complexity.
In addition, Bozarth et al. (2009) measured organizations' performances using factors like low-cost delivery, schedule attainment, customer satisfaction, and competitive performance. The authors concluded that an increase in complexity negatively affects organizations' ability to achieve their goals. Also, according to Quinn and Rohrbaugh (1983), an organization must balance between many of its contradictory values to function effectively. For example, an organization must find a balance between the needs for stability and flexibility and between the needs for variety and control. An organization's management of supply chain adds to the complexity it faces. Hence, organizations find balancing between such competing values (e.g., stability and flexibility) very challenging, especially in the face of the COVID-19 pandemic.
