Centralization versus Decentralization of Supply Chain/ Logistics Function

Running head: DISSERTATION
Centralization versus Decentralization of Supply Chain/ Logistics Function

DISSERTATION 2
Table of Contents
Chapter 1 – Introduction..................................................................................................................3
Chapter 2 – Literature Review.........................................................................................................7
Introduction..................................................................................................................................7
Supply Chain Processes...............................................................................................................7
Logistics functions dynamics, importance, and risk on Business................................................8
Centralization...............................................................................................................................9
Decentralization.........................................................................................................................10
Centralization vs Decentralization.............................................................................................10
How org structure affect the decision to centralize....................................................................13
Challenges in Centralization implementation............................................................................13
Factors influencing Centralization.............................................................................................14
Benefits of centralization in the supply chain............................................................................17
Conclusion.................................................................................................................................18
Chapter 3 – Methodology..............................................................................................................19
Chapter 4 – Results........................................................................................................................26
Chapter 5 – Discussion..................................................................................................................36
Chapter 6 – Conclusions and Recommendations..........................................................................42
References......................................................................................................................................46
Appendix: Results of interview.....................................................................................................55

DISSERTATION 3
Chapter 1 – Introduction
Research background
XYZ Headquartered in the USA is a diversified global technology as well as, engineering leaders
with two key platform businesses that are ABC and DEF. Furthermore, it has about 200
manufacturing locations together with, 102,000 workforces at the global level. XYZ MEA
headquarter is based in Jebel Ali, United Arab Emirates. It is free zone body with big campus
contains two manufacturing facilities, office building as well as, three warehouses (Schapper, et.
al., 2017). In addition, XYZ automation solution contains five business units under each there are
different business lines. It is addressed that each business unit i.e. XYZ automation solution
platform manages the core functions along with, supporting functions are managed at platform
level like IT, HR, international trade compliance, legal, facilities management, and marketing
(Schmitt, et. al., 2015).
Moreover, XYZ has different support centers that servicing the region in different functions as
back offices in several cost-effective nations like Romania, India as well as, Philippines.
Moreover, 5 business units have 73 logistics touch points that can vary the job description,
buyers, project managers, and admin they all deal with the shipment from A to Z (Giri and
Sarker, 2017). Because of different factors like lack of competency, different touch points, no
process or logistic organization within business units, cost and economy of scale are not
optimized, the organization suffered through leakages, modes of transport POAs, the
organization suffering through leakages, insufficient information as well as, missing a lot of
chances for cost-saving together with, efficiencies (Harrison and Lock, 2017).
The vision of the project is to create a centralized team of focused logistics managers who would
be supporting business unit goals for making sure cost control, bring speed, resilience in the

DISSERTATION 7
Chapter 2 – Literature Review
Introduction
In literature review, different sources are used for creating information regarding research issues.
These sources are journal articles, academic publications, online websites, and textbooks. This
literature review contains the centralization versus decentralization in general. It can be
summarized that there are different companies who centralized Supply chain or logistics
function.
Supply Chain Processes
According to Meng et al. (2016), supply chain management is a procedure practiced by the
corporation for making sure that their supply chain is cost-efficient and efficient. Along with
this, the supply chain is a set of steps that a firm takes for transforming the raw material into the
final products. The following process is used in supply chain management:
Plan
The primary stage of supply chain management is the planning phase. There is a requirement for
creating a plan for identifying how products and services would satisfy the demands as well as

DISSERTATION 8
the necessities of consumers. In this phase, planning can generally emphasize on designing an
approach that may yield the maximum profits (Chen, et. al., 2017).
Develop (Source)
After planning, next phase entails developing or sourcing. In such a phase, a company can focus
on creating a strong liaison with the suppliers of raw materials because it is essential in the
context of production. It also entails not only addressing dependable suppliers but also evaluating
the different planning techniques in the context of delivery, shipping as well as, payment of
products (Nematollahi, et. al., 2017).
Make
This is the third steps in the supply management procedure that is used in the production of
products and it is demanded by customers. In this phase, products are produced, designed,
packaged, tested as well as, synchronized for delivery (Yildizbaşi, et. al., 2018).
Deliver
It is the fourth phase in supply chain management. In this stage, products are delivered to
consumers at the destined location through suppliers. This phase is generally logistics phase in
which customers orders are accepted as well as, delivery of products is planned (Yildizbaşi, et.
al., 2018).
Return
It is the final phase of supply chain management where, defective and damaged products are
returned to suppliers through customers. Furthermore, corporations should effectively deal with
consumer queries and responded to their complaints (Mugurusi, and Bals, 2017).
Logistics functions dynamics, importance, and risk on Business