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Products, Customers, Competitors, Subsidiaries, Countries, And Partners, All Increasing: Are They Making Your Supply Chain Business Too Complex?

Supply Chain Business


Products, Customers, Competitors, Subsidiaries, Countries, And Partners, All Increasing: Are They Making Your Supply Chain Business Too Complex?

Different Products on Supply Chain Business

Every company wants to improve its results, and to do so, they can use very different ways. The most common ways they use to achieve this goal are whether improvement of the quality or the reduction of their costs.

How do they do? What methods do they use? They want to sell more products, in more many locations, to target more customers and achieve better results.

Discussion About Supply Chain Business

On the other hand, they also want to cut their costs and that is the reason why they implement subsidiaries in many different locations and countries because they think it is always a good solution. However, sometimes (if it is not often), they happen to be wrong about their evaluation and analysis about the process they chose to carry out.

Global Supply Chain Group - aw

However, this article is not about preparation and wrong analysis of opportunities, but it aims at proving that complexity is the only result they get through these decisions.

First of all, what is complexity? Complexus (Latin) means “twisted together”, which is quite a good definition of this concept.

According to Wikipedia, “Definitions of complexity often depend on the concept of a “system” – a set of parts or elements that have relationships among them differentiated from relationships with other elements outside the relational regime.

Many definitions tend to postulate or assume that complexity expresses a condition of many elements in a system and many forms of relationships among the elements.”

Therefore, complexity appears through tremendous numbers of interactions between the numerous parts of a system. In fact, complexity keeps increasing while have more and more parts, which makes sense obviously.

A very small business does not imply complexity because interactions and relationships are limited to a few numbers of parties and people.

However, there might not be enough complexity in those businesses because it also means that results will not be as good as for bigger businesses.

Obviously, we are talking about profit here. Consequently, it is very logical that companies want to grow, in order to improve their results and beat their competitors in the market.

However, at some point, companies that cannot stop increasing anymore can end very badly, and this is because of over complexity.

Beyond a certain point, expansion involves complications and the turnover starts to decrease, as well as profitability. Therefore, every CEO should have a look at its entire business, and the parties and relationships that consist it.

In effect, your business might be becoming over complex because of useless interactions that make the business go down instead of helping it improve.

All the content of this article can be summarized by the complexity curve below:

Products Performanceon Supply Chain Business

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To conclude, we have no choice but to accept that the more complex your business become, the less money you will earn. Thus, CEOs must pay more attention to what is happening when expanding a business.

In effect, management has to evolve while your business is expanding and that is the reason why it is important to take into account all the consequences that can appear every time you make a decision.

Learn More About Supply Chain Business

Complexity can be unstoppable and make your business go bankrupt if you do not act before it is too late. If you want to understand more about growing businesses, you can read Vivek Sood’s book, The 5-STAR Business Network (

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Our Quick Notes On Five Flows Of Supply Chain Management

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. What is the importance of difference between "Supply Chain" and "Value Chain"?

. What are the stellar case studies of each of the five flows?


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Today, Vivek and his partners are among 20-30 people on the planet earth who have this deep understanding of supply chain systems, practices and tools. CEOs, COOs, executives and Boards call them in most challenging situations once they know the full potential of supply chain based transformations. Following are key milestones in Vivek's journey:

  • Started in 1983 as a merchant navy cadet at 18 years age, worked his way to qualify as a Captain – qualified to take command of any merchant ship, worldwide.
  • Earned a top tier MBA from UNSW at the top of his class.
  • Joined highly regarded strategy consulting firm Booz Allen & Hamilton, consulting to the CEOs, Boards and senior management of global corporations within Australia.
  • To learn and specialise in supply chain – against all odds, sought out the co-inventor of supply chain in Germany and convinced him to be a partner in his firm, GLOBAL SUPPLY CHAIN GROUP, launched in January 2000.
  • More than 500 successful blue chip projects with high impact business transformations in large corporations using the full power of SUPPLY CHAIN MANAGEMENT.
  • 4 Seminal and path breaking business books IN SUPPLY CHAIN MANAGEMENT – these are available in bookstores and universities and libraries worldwide.

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Our Quick Notes On Five Flows Of Supply Chain Management




Our Clients say it better than we ever could:



Our Clients come from a variety of industries – yet they have a common element. They rarely rest on their laurels, and are always looking to do better.


In the last 20 years we have completed more than 500 projects. Click below to see a sample of our projects.



Our Books



If you are deeply passionate about the world of business and supply chain networks as I am, and enjoy digging answers to critical questions that will help build and steer your business with wisdom, then join me. This book is a journey of exploration through the world of business networks that run along the veins of today’s commercial world.



The trend of outsourcing continues to grow unabated with the whole gamut of services, from simple to mission-critical tasks. There is not a single company on earth that does not outsource anything. It is not just about cost arbitrage, it is also a finer expression of division of labour at the organisational level. Like all leverage, outsourcing is a double-edged sword too. On one hand, it allows you to do more, faster. On the other hand, if it goes bad, it can easily kill your business. If you do not believe that is possible – you can google the Fox Meyer saga from the 90s and see for yourself.



Businesses Are Chained By Unseen Chains. If You Are Looking For Ways To “Unchain Your Corporation” A Successful Business Transformation Is Required.

Successful Business Transformations Are Difficult, Yet Rewarding.

Business Transformation Is Fast Becoming A Question Of Survival In The Modern Globalised Era.

Modern Supply Chains Integrate Businesses And Economies Faster By Systematic Information Sharing From Internal And External Sources.

Companies Can Multiply Profits By Progressively Ramping Up Cohesion And Collaboration Of All Moving Parts In B2B Network To Achieve Tighter Integration.



It is generally accepted that environmental consciousness is now changing to environmental proactiveness as organizations are discovering that it makes good commercial sense.

Boards are asking the management to review their policies related to environmental norms, not only to bolster their corporate social responsibility aims, but also because consumers are asking for greener supply chains

It is also widely agreed that consumers will increasingly prefer to buy more and even pay more for products or services provided in an environmentally sound manner.



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