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Cities can benefit from complex supply chains.

Nazlı B DoğanAlfonso MejiaMichael Gomez
Published in: npj urban sustainability (2023)
Supply chain complexity is perceived to exacerbate the supply disruptions or shocks experienced by a city. Here, we calculate two network measures of supply chain complexity based on the relative number-horizontal complexity-and relative strength-vertical complexity-of a city's suppliers. Using a large dataset of more than 1 million annual supply flows to 69 major cities in the United States for 2012-2015, we show that a trade-off pattern between horizontal and vertical complexity tends to characterize the architecture of urban supply networks. This architecture shapes the resistance of cities to supply chain shocks. We find that a city experiences less intense shocks, on average, as supplier relative diversity (horizontal complexity) increases for more technologically sophisticated products, which may serve as a mechanism for buffering cities against supply chain shocks. These results could help cities anticipate and manage their supply chain risks.
Keyphrases
  • social support