Loosely Coupled Supply Chain Definition

A loosely coupled supply chain is a supply chain in which each node (i.e. supplier, manufacturer, retailer, etc.) is only weakly connected to the others. This means that each node can make decisions independently of the others, without having to coordinate with them. This can lead to a more flexible and responsive supply chain, but it also comes with some risks.

There are two main types of coupling in a supply chain: physical and informational. Physical coupling refers to the connections between the nodes in the supply chain, such as transportation links or production facilities. Informational coupling refers to the sharing of information between the nodes in the supply chain. A loosely coupled supply chain has weak physical and informational coupling.

The benefits of a loosely coupled supply chain include increased flexibility and responsiveness, as well as reduced coordination costs. The downside is that it can lead to higher levels of inventory and waste, as well as decreased visibility into the operations of the other nodes in the supply chain.