Can control theory help supply chain management?

Abstract

An end-to-end supply chain is a complex, multilevel system typically composed of geographically distributed operations, including companies in different time zones and countries that may not want to share data to protect confidentiality, current or future competitive advantage, and/or for reasons of legal compliance. Furthermore, what data is shared may be noise corrupted, delayed, and/or intermittently unavailable. Engineers and applied mathematicians have been using control theory (CT) to manage systems in real time, ranging from automotive cruise controls through communications, and chemical and industrial processes. Although such systems rarely face the challenges of visibility and distributed data of a supply chain, the focus of this paper is to identify opportunities to use CT to improve supply chain management. As supply chains evolve from sequential, functionally siloed processes to more connected end-to-end models, the challenge is no longer just planning but coordinating decisions across the entire network. This shift towards supply chain orchestration requires organisations to sense changes earlier, evaluate trade-offs more effectively, and respond in a coordinated way. In this context, adaptability becomes a key differentiator. This paper explores how principles from control theory can help improve responsiveness, stability, and decision making to enhance the performance of supply chains. This article is also included in The Business & Management Collection which can be accessed at https://hstalks.com/business/.