Supply chain complexity management – an industry perspective

The competitive pressure on grocery retailers is increasing. Higher number of product variants and store brands, e-commerce and digitization, increasing customer awareness for local products and globalization are just a few examples of the increasing complexity in this industry. According to several studies, supply chain complexity (SCC) is a growing trend and therefore its management is essential for companies to be successful. As part of companies´ supply chain management processes, SCC management plays a major role. The main purpose of this paper is to provide insights into the management of SCC within the grocery industry. With only four major players, generating nearly 80% of the industry´s turnover, this industry is an ideal example to investigate SCC not only from a company level, but also taking into account industry-related considerations. By doing so, we firstly want to address the question, whether SCC can have positive and negative effects on performance – given certain circumstances - to make delineations about an optimal/desired level of SCC. Secondly, a SCC index will be developed based on the Austrian grocery industry that helps to assess different SCC levels. Merging these two aspects will guide as a vital constituent of SCC management efforts for companies.