Loosely-Coupled vs. Tightly-Coupled Supply Chain


This concept introduces the terms and describes some essential characteristics of loosely-coupled and tightly-coupled supply chains.

Technique Overview

Loosely-Coupled vs. Tightly-Coupled Supply Chain Definition

Tightly-coupled (also known as hard-wired or linked) and loosely-coupled supply chains are two polar models of collaboration between buyer and supplier where a linked model represents a close relationship and a loosely-coupled model refers to low-interdependency between partners. Supply chain collaboration is defined as "two or more chain members working together to create a competitive advantage through sharing information, making joint decisions, and sharing benefits ..." (Simatupang and Sridharan, 2002).

Loosely-Coupled vs. Tightly-Coupled Supply Chain Description *

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Business Evidence

Loosely-Coupled vs. Tightly-Coupled Supply Chain Strengths *

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Business Application

Loosely-Coupled vs. Tightly-Coupled Supply Chain Implementation *

Success Factors of Loosely-Coupled vs. Tightly-Coupled Supply Chain *

Measures of Loosely-Coupled vs. Tightly-Coupled Supply Chain *

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Professional Tools

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Further Reading

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Loosely-Coupled vs. Tightly-Coupled Supply Chain References (4 of up to 20) *

  • Balasubramanian, P. and Tewary, A.K. (2005) Design of Supply Chains: Unrealistic Expectations on Collaboration. Sãdhanã, Vol.30(2/3), pp. 463-473.
  • Brown J.S., Hagel, J. III and Durchslag S. (2002) Loosening Up: How Process Networks Unlock the Power of Specialisation. McKinsey Quarterly, Vol. 2, pp. 59-69.
  • Clapperton, G. (2010) Dell Outsources its Supply Chain Reinvention. [online] Available at: www.information-age.com/channels/it-services/features/1261013/dell-outsources-its-supply-chain-reinvention.thtml [Accessed: 27 January 2011].
  • El Sawy, O.A. (2003) Collaborative Integration in e-Business Through Private Trading Exchanges. Information Systems and e-Business Management, Vol. 1(1), pp. 119-137.

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