MULTI-LEVEL SUPPLY CHAIN DEPENDENCIES


Marcel W. Ludema Delft University of Technology, Faculty of Technology, Policy & Management, PO BOX 5015, 2600 GA Delft, Phone: +31-15-278 1885
Email: m.w.ludema@tbm.tudelft.nl

ABSTRACT: Supply Chains are multi-flow streams in wider networks of business relations. Communication, transparency and trust are the vital elements that have a major impact on the short and long term functionality of supply chains. Dependencies between supply chain partners are formed by the way supply chain partners organize their linkages with other supply chain partners. Dependencies can be seen from several perspectives, like the necessity for materials necessary for producing final products. Others dependencies like power and trust often are viewed as the balance of business-opportunities and/or staying in business. Four different approaches to dependencies are discussed. The first is a broader than “traditional” dependency. The second is systems (systemic structural) dependency, where seeing and experiencing the whole picture instead of seeing only your own business is focused on. The third is hierarchical dependency, based on the concept of Nearly Decomposable Systems. The fourth approach is (free-scale) network dependency, discussing supply chains in respect to clusters and networks. The fifth is knowledge dependency, and the role of learning potentials for individuals within organizations.

KEYWORDS: Supply Chain Management, Scale Free Networks, Knowledge Navigation, Systemic Structures, Networks, Nearly Decomposable Systems

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