Understanding supply networks as complex adaptive systems.

Professor of Supply Chain Management, Thomas Choi, discusses supply networks and the importance of multi-tier relationships and the ability to adapt quickly to market changes. Professor Choi is a great teacher and very enthusiastic about supply chain.

A supply network can be understood as a complex adaptive system, which is a type of system that is made up of many interconnected parts that can adapt and change over time in response to external stimuli. Here are a few key characteristics of complex adaptive systems:

Interconnectedness: Complex adaptive systems are made up of many interconnected parts, which can interact and influence each other in complex ways. In a supply network, this might include suppliers, manufacturers, logistics providers, distributors, and customers, all of which are connected and can influence one another.
Adaptability: Complex adaptive systems are able to adapt and change over time in response to external stimuli. In a supply network, this might involve adjusting to changes in demand, technology, or regulations.
Emergence: Complex adaptive systems can exhibit emergent properties, which are characteristics that arise from the interactions of the parts of the system. In a supply network, this might involve the emergence of new patterns of behavior or relationships that were not present before.
Nonlinearity: Complex adaptive systems often exhibit nonlinear behavior, which means that small changes can have large impacts on the system. In a supply network, this might involve small changes in demand or the availability of raw materials having significant impacts on the overall performance of the network.

Overall, a supply network can be understood as a complex adaptive system, which is made up of many interconnected parts that can adapt and change over time in response to external stimuli. These systems often exhibit emergent properties, nonlinear behavior, and adaptability.

Further Details on Supply Networks

A complex adaptive system (CAS) is a system that is made up of many interconnected parts that interact with each other in complex ways. CASs are often characterized by their ability to adapt to change and emerge new properties and behaviors.

Supply networks are a classic example of CASs. They are made up of many different types of organizations, including suppliers, manufacturers, distributors, and retailers. These organizations are interconnected through the flow of materials and information.

The complexity of supply networks comes from the many different factors that can affect them, such as changes in demand, disruptions in transportation, and fluctuations in raw material prices. Supply networks are also highly adaptable, as they are constantly evolving to meet the changing needs of the market.

Here are some of the key characteristics of supply networks as CASs:

Non-linearity: The behavior of a supply network is often non-linear, meaning that small changes in one part of the network can have large and unpredictable effects on other parts of the network.
Emergence: Supply networks exhibit emergent behavior, meaning that they can produce new properties and behaviors that are not present in any of their individual components.
Self-organization: Supply networks are able to self-organize, meaning that they can adapt to change without the need for centralized control.

Here are some examples of how the CAS framework can be used to understand and manage supply networks:

Identifying and understanding the different components of the supply network and how they interact with each other. This can help us to identify potential bottlenecks and vulnerabilities in the network.
Developing strategies for managing the complexity of the supply network. This may involve using decentralized decision-making and adaptive planning techniques.
Designing supply networks that are more resilient to disruptions. This may involve building in redundancy and flexibility into the network.

Supply Chain and Negotiation Quotes

“During a negotiation, it would be wise not to take anything personally. If you leave personalities out of it, you will be able to see opportunities more objectively.” ~Brian Koslow
“Negotiation is not a policy. It’s a technique. It’s something you use when it’s to your advantage, and something that you don’t use when it’s not to your advantage.” ~John Bolton
“I want women to get paid more. I want to teach them to negotiate so they get paid more.” ~Sheryl Sandberg
“Victorious warriors win first and then go to war, while defeated warriors go to war first and then seek to win.” ~Sun Tzu
“The most difficult thing in any negotiation, almost, is making sure that you strip it of the emotion and deal with the facts.” ~Howard Baker
“A negotiator should observe everything. You must be part Sherlock Holmes, part Sigmund Freud.” ~Victor Kiam
My father said: ”You must never try to make all the money that’s in a deal. Let the other fellow make some money too, because if you have a reputation for always making all the money, you won’t have many deals.” ~J. Paul Getty