Scalable Organization Structures and Evolution
Below is a good example of a balance organization structure in Supply Chain Management. It’s scalable for the business.
Best in Class Supply Chain Organization:
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[Figure 1] Example of a supply chain management organization
MIT’s slide above and points below regarding Organization Design and Trade-Offs to be consider:
1. Strategic vs. Operational Coordination
i. Where in organizational Hierarchy does supply chain belong?
ii. Is it a peer to Operations, Manufacturing, Sales, etc..?
2. Line vs. Staff Coordination
i. Where do line activities occur?
ii. Does supply chain activity occur in within all areas or only staffed in supply chain?
3. Centralized vs. Decentralized Coordination
i. Which activities are best administrated and controlled from a central (headquarters) location?
ii. Which activities are best administrated and controlled from decentralized (regional) locations?
iii. How is coordination made between regions, countries, business units (BUs), channels, divisions, etc.?
Having the right people, good processes and best technology for scalable and improved business.
Key is finding balances and trade-offs between the three.
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