Supply Networks as Complex Systems: A Network-Science-Based Characterization

Abstract

Outsourcing, internationalization, and complexity characterize today's aerospace supply chains, making aircraft manufacturers structurally dependent on each other. Despite several complexity-related supply chain issues reported in the literature, aerospace supply chain structure has not been studied due to a lack of empirical data and suitable analytical toolsets for studying system structure. In this paper, we assemble a large-scale empirical data set on the supply network of Airbus and apply the new science of networks to analyze how the industry is structured. Our results show that the system under study is a network, formed by communities connected by hub firms. Hub firms also tend to connect to each other, providing cohesiveness, yet making the network vulnerable to disruptions in them. We also show how network science can be used to identify firms that are operationally critical and that are key to disseminating information.

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