Coordination in Supply Chains

The need for supply chain coordination is far greater today than ever before after witnessing the repercussions on economic activity and business adversities when there are disruptions in global supply and distribution. Supply chains are complex systems characterized by interrelated functions within a network structure with high interdependencies between firms. These involve various interfaces across procurement, production, logistics, and retail; all of which require effective coordination. This chapter provides a review of coordination in supply chains highlighting various concepts, theories, and research conducted into the area. A majority of existing studies on supply chain coordination tend to focus on various processes and functions between firms based on experiments, analytical modeling, numerical analyses, and heuristics to derive optimal solutions to problems. New directions for further research are needed particularly for more empirically oriented studies and qualitative approaches, which can provide deeper and richer insights about contemporary issues and the realities of operations systems that impact coordination in supply chains. Future research will also need to extend beyond dyadic relations and incorporate more holistic approaches of supply chain coordination. Concepts of system dynamics, systems thinking, and complex adaptive systems are highlighted as possible theories underpinning future research, as well as the need for collaborative approaches between firms. The results from such studies will also provide greater implications for industry practitioners in making more informed decisions as well as in designing effective supply chain structures and coordination mechanisms.