Centralization versus Decentralization of Supply Chain/ Logistics Function

This dissertation explores the centralization versus decentralization of supply chain and logistics function in an MNC HQ in UAE. It discusses the importance and risks of logistics functions in business, and compares centralization and decentralization. The dissertation also includes a literature review, methodology, results, discussion, and recommendations.

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

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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

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value chain, performing with trade compliance team for avoiding risk along with leveraging
organization volumes as well as, logistics providers (Davis-Sramek, Germain, and Krotov,
2015).
By performing in an existing soiled way, BUs is accountable to make own logistics decisions as
well as, each BUs is demonstrated as a profit degree for company. Along with this, companies
with this structure may tend to create control of their individual operations as well as, are
resistant to change. Whereas, the decentralized system may offer more chances related to
localized carrier mix as well as, development of individual carrier associations (Moons,
Waeyenbergh, and Pintelon, 2019). However, it does not permit for cross-division transparency
or carrier consolidation, creating it operationally less efficient particularly that all BUs related to
XYZ organization work together with almost same suppliers as well as, sell via the same local
partner of the business in MEA region (Madani and Rasti-Barzoki, 2017).
Through the adoption of the centralized strategy, a company can coordinate all of its divisions as
well as, gain visibility, resultant in higher cost-efficient and strategic company. A centralized
system is flexible and cost-driven, permitting organizations for shifting strategy as per the
transformation in the market. A company may leverage a centralized system that can promptly
become more efficient and lean (Bals and Turkulainen, 2017).
Research Objectives
The research objective is to develop report will be shared with XYZ top management to assist
with the decision-making
Research question
RQ: whether to centralize or decentralize the logistics function in an MNC HQ in UAE
Research Rationale

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This research report is beneficial for academicians to understand the difference between
centralizing and decentralize process in logistic function. It is also significant for practitioners to
increase the knowledge about the companies who centralized supply chain or logistics function.
Projected Outcome
This research will provide the facts and figures regarding difference among centralize and
decentralize process in logistic function. It will also create information regarding companies who
centralized supply chain or logistics function.
Dissertation structure
The structure of investigation is significant for completing the investigation into the systematic
way. This investigation would consider different chapters such as introduction, literature review,
a methodology for this research, data analysis and findings as well as, conclusion and
recommendations. In such a manner, the initial chapter is exhibited the introduction parts and
included the aim and objectives, research background as well as, project scope. The second
chapter is a literature review that would depict the opinion of several authors through secondary
sources (Li, et. al., 2016).
The third chapter is a research methodology in which, an investigator would select an
appropriate research philosophy, approach, strategy, and data gathering techniques according to
the nature of research concern. The fourth chapter is findings and discussion that is demonstrated
the collected information via qualitative results and it is favoured through literature review. The
last chapter is conclusion and recommendation in which, an investigator is concluded the
investigation as per the findings and suggested the feasible solution to develop further
investigation (Bals, Laine, and Mugurusi, 2018).
Conclusion

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From the above interpretation, it can be concluded that aim and objectives are used to address the
research concerns. It can be summarised that the dissertation structure is used for demonstrating
different chapters that would be considered in this research report.

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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

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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

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Feng et al. (2017) illustrated that logistics is the procedure of transformation of goods and
services across the organizational supply chain. This function could consider many acts which
have to properly control to bring the efficiency as well as effectiveness in the supply chain
process of the firm.
Importance of Logistics functions in business
Li et al. (2015) opined that logistics are essential factors of the supply chain management
process. It entails many acts named as planning, carrying, goods management, and secure the
information from beginning to end consumers. It could also enable the organization for shipping,
receiving, and transportation of goods. It could enable to having many services that are
associated with the export-import operation, inventory management, customer services, planning
of production, and export-import operations.
Risk of Logistics functions in business
The following Risk of Logistics functions are confronted by the firm:
 Delays in carrier
 Theft as well as Take-over
 Lack of security and safety legislation
 Mergers and acquisitions
 Lack of inventory (Feng, et. al., 2017).
Centralization
As per the view of Ghasemi et al. (2017), centralization is a process through which business
activities, particularly planning as well as, decision making is concentrated within the specific
location and group, commonly in the headquarter. Centralization supply chain procedure is
those, which could be organized from a remote place, can deal with several sites, as well as,

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leads the synergy by serving several sites. They also offer less duplication about resources and
offer effectiveness and efficiency by organizing key procedures centrally. In certain cases, it
could save the money as well as, facilitates economies of scale.
Decentralization
In the view of Sinayi and Rasti-Barzoki (2018), decentralization is the procedure of distributing
the function, powers, and people things away to central location or authority. Under the
decentralization supply chain, individual units create a decision as per the local information. This
system creates it easy for incentivize players for acting in co-operation, creating the entire supply
chain efficient. In an existing globalized economy, MNCs is making efforts for capturing market
share via centralized supply chains.
Centralization vs Decentralization
According to Ross (2015), pivot position or set of executive workers for decision-making and
scheduling and considering practices of company is an alias as centralization. In such kind of
company, all significant legislation, as well as powers is in hand of higher authority. In earlier
period, the centralization policy was highly used in each organization in order to preserve all
supremacy in a central position. Furthermore, they have full power over practices regarding
middle and low-level management.
In contrast to this, Ali et al. (2018) stated that coordination and personal leadership could be
distributed easily between employees. But, because of attentiveness of responsibility as well as,
authority, the role of subordinate within an organization is decline due to all feasible vests with
headquarters. Hence, junior staffs are only to pursue command of executives as well as function
accordingly. Furthermore, they are not permitted to consider vigorous parts into decision-making
intentions. In some cases, hotchpotch is developed because of excess workload that

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consequences in the prompt decision. Along with this, Red-Tapism and Bureaucracy are one of
the drawbacks of centralization.
As per the view of Monczka et al. (2015), centralization is a form of organizational structure in
which, individually one unit is authorized for making an autonomous decision, determining goals
and objectives, and set strategy. With the management perspective of the company,
centralization occurs while the parent company takes the power back and functions from
subsidiaries and put them in its central units. In addition, centralization can be accessed from the
macroeconomic aspects. Along with this, the centralized state is state that can make sure
uniformity of policy within its borders, but ignores the specify requirements of individual states.
As per the view of Modak and Kelle (2019), the assignment of responsibilities and authorities by
top-level management to middle or low-level management is an alias as decentralization. It is
opposite of centralization where managerial powers are delegated to divisional, departmental,
unit or central rank of manager in an organization. Furthermore, decentralization can be stated as
an addition to the delegation of power.
In opposed to this, Stauffer et al. (2016) stated that due to increasing rivalry, managers take
judgment about allocation of authority to subordinates. Because of this, functional level
supervisors obtain an opportunity to deal effectively and autonomy of task is present. Along with
this, they share accountability of high-level executives that outcomes in prompt managerial level
as well as, time savings. It could be a significant procedure to expand the business such as
mergers and acquisitions.
As per the view of Heydari et al. (2018), decentralization is related to transferring the power
through high degree of government to lesser one. It is type of organizational structure in which,
different units could be certified for making autonomous verdict. Consequently, decision is

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developed faster as well as, by more capable employees as compared to the centralized system.
In addition, decentralization permits new unit to deal as an independent body that increases
elasticity as well as, the accuracy of practices.
In opposed to this, Konur and Geunes (2016), from macroeconomic aspects, decentralization
entail transfer regarding administrative, political as well as, fiscal influence through central to
regional regulatory bodies as well as, local administration. In addition to this, the
decentralization state is a situation that forfeits uniformity about strategies for meeting the
specific requirements of each region. Although, in decentralization, there is a lack of
coordination and leadership there is lead to unproductive control over company. For significant
decentralization procedure, free as well as, open communication in firm should be there.
As per the view of Oeser and Romano (2016), the association of authorities and power is in hand
of high-level administration and that is alias as centralization. Along with this, decentralization
indicates the diffusion of power as well as, authorities through high level to functional level
administration. In addition to this, centralization is a system as well as reliable attentiveness
about the authority at the fundamental points. In contrast to this, decentralization is a methodical
delegation of authority at the workplace.
In opposed to this, Nematollahi et al. (2018) evaluated that centralization is significant for small-
sized company; however, the large-sized company should imply decentralization. In addition to
this, formal interaction exists in a centralized company. On the other hand, under
decentralization, communication may stretch in all the directions.
As per the opinion of Venegas and Ventura (2018), under centralization, due to concentration of
power in the hand of a single individual, decision may take time. In opposed to this,
decentralization may prove better about decision making because decisions are taken much

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closer with actions. There is also full leadership as well as coordination within centralization.
Moreover, decentralization shares regarding burden of higher level of managers. While a
company has insufficient control on management, then centralization could be executed while,
when a company has full control on its administration then, decentralization could be applied.
How org structure affect the decision to centralize
Yoo and Cheong (2018) stated that the organizational structure could support to employees to
improve their productivity. It is stated that the organizational structure could lead to making the
focused vision which will be imperative in increasing the productivity of the organization. Vision
is the primary trait of imperative leadership as well as having the more centralized system that
maintains all levels of the firm sections by entailing one vision. The organizational executive
team could share their targeted vision to its employees due to give a direction to have higher
competitive advantages. The vision could make liable to the organization for continuously
helping others.
Sinayi and Rasti-Barzoki (2018) examined that the organizational structure could make liable to
the firm to control and manage the accountability of business. In addition, it is illustrated that
centralized team leaders could be liable to have an effective decision in favor of the company.
The team leader of the organization could be liable for negotiating others for the accomplishment
of the organizational task. It is also founded that the organization could also negotiate the
employee to effectively working in the firm and makes a decision in a systematic manner.
Challenges in Centralization implementation
According to Avcinand and Selim (2017), centralization implementation creates a challenge
regarding a delay in work. Furthermore, centralization generates the loss of man-hours together

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with, delay in work performance due to the transmission of record and central control room. In
addition to this, the prompt decision is not a prospect which outcomes in delay in office work.
In contrast to this, Snyder et al. (2016) evaluated that remote control is a key challenge in
centralization implementation. Moreover, better supervision is not possible because the
executives are under heavy pressure regarding work. Slackness in performance is created in the
unavailability of supervision and effective control.
Xu Wang and Zhao (2018) stated that in centralization, there is no initiative of subordinates in
work because it is required to perform such tasks that they were asked for. Furthermore,
employees work-life machine that outcome in no involvement in performance as well as,
unavailability of zeal. All these factors are considered as barriers in the creation of loyalty to
performance. Apart from this secrecy is not considered in centralized setup firms because orders
and decision flow from one place and are expressed to all. Under centralization, no special
attention is provided to special work as all performances are performed at one place.
Factors influencing Centralization
According to Song and Zhuang (2017), uniformity of action prospects while decision-making
authority is centralized. The decision is affected at the top would be executed at each stage.
There could be more than one unit under the same management as well as, it could be desired to
have some kinds of procedures and policies. When the units take their independent decision then
uniformity of action would not be attained. In such condition, centralized decision making would
competent for uniformity of action.
In contrast to this, Wang et al. (2017) evaluated that there could be a requirement for integrating
all operation of enterprise for attaining the common objectives. Furthermore, centralized

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management would provide integration regarding activities by categorizing common policies as
well as initiatives.
In the view of Kong et al. (2017), the company grows on strength as well as, the capability of
their manager. Moreover, concerns rely on qualities of top executives at the time of initial
periods. The whole authority would be in hand of the chief executive. It would outcome in the
prompt decision as well as their imaginative actions. The top executive would attain more and
more experience and skills that would attain their individual leadership.
In opposed to this, Zhu and He (2017) evaluated that under the uncertain business situation, there
is a requirement to make emergency decisions. The existence of a small scale unit is rare when
timely actions are not considered. Furthermore, the centralized authority would enable the
prompt as well as a timely decision for short and long term aspects.
Research and Analysis on Centralization strategies and cost structure especially in
industrial products manufacturing
Panda et al. (2016) stated that the manufacturing industry used Cloud ERP systems that could be
vital for integrating the different section activities into one single platform as it facilitates to offer
perceptibility into each act of their operational activities. This software could also be imperative
for the attainment of the organizational task. It would also enable the organization to meet its
targeted requirement by integrating the process of firm and workflows. It could lead to improve
the tracking process at limited cost and time.
Cost structure in industrial products manufacturing
Rached et al. (2016) evaluated that the cost structure could also facilitate the organization to
consider two kinds of costs named as a variable and fixed cost, which occurs in the business. The
business concept could be determined as the smaller units named as by goods, services, line of

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product, division, region, and customers. It is illustrated that the cost structure is practiced for
determining the price that will be spent by the firm to meet its organizational task.
Examples of companies that centralized the logistics function and results
STARBUCKS
As per the view of Ravindran and Warsing Jr (2016), due to size alone, the supply chain of
Starbuck has created several potentials regarding inefficiencies along with the wastage of
procurement. But, the renowned company is dedicated to efficiency and sustainability and that is
supportive for keeping the supply chain operation smoother as compared to expecting for a
corporation with 15000 stores in over 50 nations. Starbuck engages in centralizing supply chain
effective modes like centralizing the management system, strictly selection suppliers, managing
the supplier relationship, avoiding the wastages and inefficiency, committing to innovation well
as, leveraging digital technologies.
PEPSICO
On the other hand, Panda et al. (2017) evaluated that PepsiCo is parent company for several
assorted as well as, beloved domestic brands and one of leading food and beverage corporations
in the globe. Moreover, company has performed an effective job transitioning to its supply chain
capability in order to deal with more multifaceted goods for following the trends of consumer to
higher healthy foods as compared to carbonated soft drinks as well as processed snacks. Along
with this, PepsiCo uses centralization in its logistics and supply chain management like
sustainability initiatives, developing inventory buffers, collaborative production arrangement,
and selective procurement and sourcing in order to attain the resilient and proficient supply
chain.
3M

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Devika et al. (2016) evaluated that 3M is previously alias as Minnesota Mining and
Manufacturing Company. 3M produces over 55000 products like laminates, adhesives, electronic
materials, medical products, dental, orthodontic products as well as, optical firms. This company
was initiated in the year of 2012 and this company has also undergone the massive restructuring
regarding supply chain from the linear, and analog structure to the technology relied on one. In
support of this, Xu Chen and Bai (2016) stated that this company uses centralization in its supply
chain for managing the inventory and delivering it on time to customers. In this case,
digitalization is becoming the techniques of selection for coordinating all links related to 3M
supply chain, endorsing collaboration, as well as, open communication at both upstream and
down to customers and suppliers.
Benefits of centralization in the supply chain
According to He (2017), one of the benefits of having centralized distribution in the supply chain
is to create better control. An organization can develop central stores that are accountable for all
practices as well as, transport their inventory and when required to other stores that are generally
attached to a capacity of production that is positioned into different locations.
On the other hand, Kong et al. (2017) evaluated that inventory could be minimum as the material
is ordered as per the need of all other attached parties. The material could be developed and
through attached central stores. It is particularly in case of fixtures, spares, equipment, and
techniques. By selecting the centralizing supply chain, there is a requirement for paying rent or
utility as well as, incidental expenditures for several warehouses is declined.
In support of this, Serrou and Abouabdellah (2016) opined that the requirement for spending
high on technologies and new equipment for each warehouse is avoided. With these reductions
in expenditures, retailers can now develop pricing strategies with more ease because of more

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constant nature regarding inventory management. It would permit higher margins and lower rates
for consumers.
According to Modak et al. (2018), depending on the type of business or kinds of products that
company delivers to customers, it has need to keep close eye regarding what it has in stock. By
using the central distribution center, developing the type of report is becoming incredibly easy. A
company needs to go to one source as compared to track down several reports through numerous
distribution centers.
On the other side, Guo et al. (2018) evaluated that by selecting to restrict the number of
distributors or warehouses, the company should emphasize its resources regarding fewer
services. It indicates that the facility would have highly proficient employees, the latest
technology as well as, best types of equipment. The premium quality of services could be
provided to consumers with all of this in one facility.
Conclusion
From the above interpretation, it can be concluded that centralization and decentralization could
be used in the supply chain and logistics. It can be summarized that there are different firms who
practices centralization in the logistics or supply chain. It can be also concluded that there are
several advantageous of utilizing centralization in the supply chain or logistics.

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Chapter 3 – Methodology
Introduction:
Research methodology plays an imperative role in the research work so that it is practiced by
researcher to accumulate relevant information with respect to investigation for pooling the
targeted research aim with objectives of research study in a significant way. A research
methodology is termed as the well-planned process and theoretical analysis of several tools
which are specifically executed in the research work area (Rached, et. al., 2016).
This section of investigation exhibit the data related to research strategies, data pooling
technique, research approaches, research purpose and research philosophies that are utilized in
the research work. These aspects are beneficial for collecting the needed data with respect to the
research dilemma that assists in resolving the critical problems of the research study (Li, et. al.,
2017). Along with this, these tools and technique also enable the research scholar to get the
specified goal of research work. This chapter of research study considers the selection process of
relevant research techniques and approaches as well as also offers precise justification (Zhu and
He, 2017).
3.1 Research philosophy:
Research philosophy is useful for evaluating development of an individual’s knowledge in the
context of research concern. This technique of research is imperative in improving conceptual
knowledge with respect to the research dilemma. Different types of research philosophy are
utilized by the investigators for a research study that are named as realism, interpretivism, and
positivism research philosophy. These research philosophies are different from each other in a
various manner related to scope and nature (Kong, et. al., 2017).

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Interpretivism research philosophy has practiced by the research scholar for achieving the
purpose of current research work as this philosophy is more suitable for this study instead of
positivism and realism research philosophy. Interpretivism research philosophy also enables an
investigator to gather views and beliefs of investigation candidates with respect to the
Centralization versus Decentralization of Supply Chain/ Logistics Function (Wang, et. al., 2017).
The accurate sample size is required for accumulating the opinions of research participants in
favor of research matter by exercising this research philosophy. Moreover, interpretivism
philosophy also supports in attaining the feasible and authentic information related to research
concern that could not be effortlessly pooled by practicing other philosophy (Jiang, et. al., 2016).
Realism research philosophy is based on actual existing situation of environment that is not
necessary for performing this study. Hence, this philosophy is not to be practiced by a research
scholar. On the other hand, due to the no need for quantitative and scientific information for this
investigation, the investigator has not implemented positivism research philosophy (Song and
Zhuang, 2017).
3.2 Research Approach:
Suitable research approach facilitates research scholar to comprehend their understanding of the
intention and purpose of selecting the particular tools and techniques of research. In the
dissertation, different types of research approaches are utilized by the investigators which are
deductive and inductive approach (Xu Wang and Zhao 2018). The inductive research approach
has exercised by the researcher for this research study due to its more appropriateness with the
interpretivism research philosophy. Inductive research approach aids the researcher to increase
their knowledge and interpret the qualitative information related to research matter (Snyder, et.
al., 2016).

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Further, the inductive approach also aids the researcher to pool huge data with respect to
Centralization versus Decentralization of Supply Chain/ Logistics Function. Relationship
between Centralization or Decentralization and Supply Chain/ Logistics Function is easily
accessed by using this research approach (Taleizadeh et al. 2018). In contrast to this, the
researcher has not chosen a deductive research approach due to the no necessity of hypothesis
development for this research work. In order to this, it is also evaluated that when the deductive
approach is practiced with the combination of interpretivism research philosophy then the
favorable result is not obtained (Avcinand and Selim, 2017).
3.3 Research type:
An exploratory technique is selected in this dissertation in order to gather the new experience
with respect to centralization versus decentralization of supply chain/ logistics function. This
type of information is required initial questions as well as, new perception with respect to the
particular research concern. It can be significant with respect to attaining the aim as well as
objective of research in a significant manner (Sinayi and Rasti-Barzoki, 2018).
3.4 Research strategy:
In order to collect the deep information about the investigation, an investigator has implemented
the semi-structured interview and face to face interview technique. It enabled the researcher for
pooling the information in terms of research concern. The depth interview is time-consuming
however, significant in terms of obtaining the favorable results (Yoo, and Cheong, 2018). It is
addressed that an investigator is conducted interview technique in a convenient location for
gathering the information as it takes less time of respondents participated in the investigation
(Sinayi and Rasti-Barzoki, 2018).
An investigator has sent the instruction regarding the questionnaire through Google form in

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order to obtain information with respect to the investigation (Wu, et. al., 2018). Along with this,
a literature review technique is utilized by an investigator in terms of collecting the conceptual
data with reference to investigation issues. This technique is significant rather than other
techniques (Ghasemi, et al., 2017).
3.5 research design:
Qualitative research design is selected by researcher to implement a technique that does not
involve the statistical measurement technique. This research design is significant for obtaining
information regarding the research issue (Li, et. al., 2015). It is evaluated that qualitative
research design is a technique that is commonly practiced in the investigation in nature as well
as, has the requirement of subjective information. It is supportive for creating the theory with
respect to research issues (Feng, et. al., 2017).
It is addressed that qualitative technique is significant because it saves the expenses and time of
investigator for gathering the trustworthiness regarding research issue. This technique would be
supportive of an investigator to capture the valid data regarding the investigation issue. This
technique is supportive for an investigator for collecting the theoretical information through
several authors that leads to collecting the positive outcome (Feng, et. al., 2017).
3.6 Data collection method:
In this investigation, an investigator has developed an interview question to keep the base
directly through questions of research. Furthermore, an interview that is conducted initiates to
the formal introduction and brief illustration about investigation issues and develops knowledge
about the context where the aspect of accountability could be illustrated (Alaei and Setak, 2015).
Moreover, the interviewer asks about the open-ended question from respondents hence, they
remain free for sharing their individual perceptions and views regarding available experiences

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(Mugurusi, and Bals, 2017). Furthermore, each face to face interview is taken about 4 hours for
assessing the data and attaining the aim of the investigation. Secondary data is gathered through
different sources like journal articles, academic publication as well as, textbooks (Xu, et. al.,
2017).
3.7 Sampling:
The key purpose of this investigation is to gather reliable and valid information through non-
probability sampling technique. This technique can aid in addressing the feasible sample size by
considering the convenience sample tool. Under this, technique, research applicants are chosen
through considering some components like age, education, experience, gender, and other factors
(He, 2015). It is evaluated that this sampling technique is permitted to research application for
obtaining reliable information that is related to the investigation (Yildizbaşi, et. al., 2018).
This investigation is conducted on 15 members of XYZ Dubai Campus where, 2 members are
selected from each BU logistics teams. The interview is conducted to obtain the information
from the company’s system regarding KPI measurements of logistics such as Requested date
Service Level (RDSL), Promised date Service Level (PDSL). It is stated that an investigator will
be competent for obtaining effective data because of choosing the feasible candidates in the
investigation (Taleizadeh and Noori-daryan, 2016).
3.8 Data analysis method:
A researcher is using the thematic data analysis technique because it facilitates a researcher to
assess the non-numerical information of investigation. This technique provides an investigation
for deeply assess the themes that would be entailed into the investigation as well as, supporting
for creating the complete investigation (Modak, et. al., 2016).
It is assessed that data is gathered for accomplishing the aim and objectives of the investigation.

DISSERTATION 24
It is evaluated that the thematic data analysis technique is applied to assess themes of qualitative
data. In such an investigation, an investigator has considered the procedure to assess the data
and creates a reliable decision in the context of the research study. It is assessed that phases of
thematic analysis can enable for attaining the investigation (Nematollahi, et. al., 2017).
3.9 Limitation:
Different limitation of investigation can create the complexities for attaining the investigation. It
is described as follow:
Time constraint
An investigator will face time concern such as minimum time duration is distributed to carry out
the cross-sectional investigation since an investigator has participated in their all classes and will
attain about 2-3 activity during an investigation (Nematollahi, Hosseini-Motlagh, and Heydari,
2017).
Fund
An investigator is belonging to low-income group family hence the financial concern is a major
concern that is created difficulties in traveling about a different area of the country because of an
insufficient quantity of money. At the time of conducting the Google form, it is a major cause to
gather the view of chosen research applicants about the research issues (Chen, et. al., 2017).
3.10 Ethical consideration:
There are some elements that are entailed into research ethics. It is discussed as follow:
Informed consent
Before the participation, freedom is offered by an investigator for research applicants to
understand the knowledge regarding the purpose of investigation. Research ethics can be entailed
by the researcher for declining deceits through investigation. In addition, an investigator will

DISSERTATION 25
offer proper data regarding the aim and objectives of investigation before implementing the
survey through a questionnaire (Meng, et. al., 2016).
Participant protection
An investigator has given adequate guidelines to research applicants to fill their full names in the
survey through questionnaire and motivates them to give appropriate responses. Furthermore, the
researcher has kept the confidentiality of the responses provided by participants regarding
research issues (Hafezalkotob, 2015).
Access
There are some accessibility concerns that are faced by a researcher to gather secondary
information like high time and cost is essential to collect the secondary information. Moreover,
insufficient resources are created complexities for gathering feasible information about research
issues (Jamali and Rasti-Barzoki, 2018).
Conclusion
From the above discussion, it can be concluded that interpretivism research philosophy is used to
gather the real phenomenon regarding research issues. The inductive research approach is used to
develop the conceptual and theoretical concern regarding research issues. Interview and literature
review is used to gather data about research concerns. Moreover, the convenient non-probability
sampling technique is used to systematically choose participants. Along with this, the thematic
data analysis technique is practiced for assessing gathered information.

DISSERTATION 26
Chapter 4 – Results
Q1: Demographic-based question
Please specify your gender
Male
Female
Q2: Please specify your age-group
21-25
26-30
31-35
35 and above years
Q3: Please mention your years of experience in XYZ Dubai campus?
1-3
4-6
7-9
10 and more
Findings of demographic factors
From the data analysis, it is found that 10 out of 15 members belonged to male while only 5
members were from female. It is also identified that there are 4 out of 15 participants fall under
the 21-25, 7 out of 15 participants fall under the 26-30, 3 out of 15 participants fall under the 31-
35 years and only 1 out of 15 participants come under 35 and above years. It is also analyzed that
3 out of 15 members have 1-3 years of experience, 6 out of 15 members have 4-6 years of
experience, and 4 out of 15 members have 7-9 years of experience as well as, only 2 members
have 10 and more years of experience in XYZ Dubai campus.

DISSERTATION 27
Q4: Why do use KPIs measurements of logistics such as Requested date Service Level
(RDSL), Promised date Service Level (PDSL)?
In this questionnaire, researcher has question the questions with participants about the use of
KPIs measurements of logistics like requested data service level as well as, promised data
service level. In this way, participants have shared their different opinions about this question
that is shown as below:
Respondents response Theme regarding logistics
Respondent 5, 4, 15: Declining inventory in against of frees up
capital investment
Respondent 7, 2, 11: declining setup time
Respondent 9: Rising frequencies of delivery
Respondent 13, 6: Declining size of lot
Respondent 1, 14: Anticipatory maintenance
Respondent 8, 3:
declining inventory to depict manufacturing as
well as, scheduling issues
Respondent 10: Declining base of supplier
Respondent 12: Purchasing through JIT suppliers
From the above table, it is found that respondent’s 5, 14, 15 states that KPIs measurements of
logistics like requested data service level and promised data service level is used for declining
the inventory that in turn frees up to the capital investment. It is evaluated that respondents 7, 2,
11 said for declining the setup time, and respondents 9 stated that KPIs measurement of logistic
is used for increasing delivery frequencies. Along with this, respondents 13 and 6 stated that
KPIs measurement of logistic is used for declining lot size. Furthermore, respondents 1 and 14
evaluated that KPIs measurement of logistic is implemented to prevent maintenance. It is also
found that respondent 8 and 3 stated that KPIs measurement of logistics is practiced for declining

DISSERTATION 28
the inventory to expose regarding manufacturing as well as, scheduling issues. In addition to this,
respondent 10 opines that KPIs measurement of logistics is used for declining the supplier base
as well as, respondent 12 states that KPIs measurement of logistics is implemented for
purchasing through JIT suppliers.
Q5: Which activity should be prioritized in supply chain management?
In this questionnaire, an investigator has asked the questions about the activity that should be
prioritized in supply chain management. In this way, participant gave their different responses
that are demonstrated as given below:
Respondents response Theme regarding logistics
Respondent 9, 14: On-time delivery to products of firm and directly to end consumers
Respondent 1, 6: On-time delivery of purchased materials directly to firm
Respondent 15, 10: Evaluating the future needs of customers
Respondent 2, 13, 7: boosting the capabilities of company in terms of Just-In-Time (JIT)
Respondent 3, 5: Contacting end-users of own products in order to get feedback
regarding performance as well as, customer service
Respondent 6: Declining response time diagonally supply chain
Respondent 8, 12: Developing more frequent contact to members associated with own
supply chain
Respondent 11: Developing higher extent of trust between members of supply chain
Respondent 4: Communicating about future strategic needs of company with the
suppliers
From the above table, it can be stated that respondent 9 and 14 stated that company should
priorities “on-time delivery of firm’s product in the supply chain” as it is directly to point of
application of customers. Along with this, respondent 1 and 6 evaluate that company should
priorities the “On-time delivery of the purchased materials into the supply chain” as it is directly
related with the point of use of the company. Respondent 15 and 10 states that “determining the

DISSERTATION 29
customer future’s need” should be prioritized in supply chain. Respondent 6 states that reducing
response time is prioritized into the supply chain. In addition to this, respondent 8 and 12 states
that “developing more frequent contact with members” should be prioritized into the supply
chain. Along with this, respondent 11 evaluates to “create a greater extent of trust between the
supply chain member” should be prioritized into the supply chain. Respondent 4 opines that
“communicating the future strategic needs of the company to supplier” should be prioritized into
the supply chain.
Q6: What challenges faced by you in achieving the Promised date Service Level?
In this question, researcher has asked with participants about the challenges faced by them in
achieving the Promised date Service Level. With this regards, respondents gave their different
responses that are discussed as given below:
Respondent 2: Ability of company to attain due dates of
delivery
Respondent 3, 12, 10: Quality of products as well as services
Respondent 9: Successful resolution regarding complaints of
customer
Respondent 8, 14: Honest as well as, frequent communications
Respondent 5, 1, 7: Being resilience to attain the changing needs of
customers
Respondent 15: Ethical standards of firm
Respondent 4: Making it easier for consumers to seek support
Respondent 6: Evaluation of potential expectations of
customer
Respondent 11: comprehending how customers exercises
products and services
Respondent 13: Engaging routine follow-up processes for
customer inquiries and complaints

DISSERTATION 30
From finding, it is evaluated that respondent 2 states that “firm’s ability to meet delivery due
date” is a challenge faced by the company in achieving the Promised date Service Level.
Respondent 3, 12, 10 opines that “Quality of the products and services” is a challenge faced by
the company in achieving the Promised date Service Level. In addition, respondent 9 evaluates
that “Successful resolution of customer complaints” is a challenge faced by the company in
achieving the Promised date Service Level.
Respondent 8 and 14 opines that ‘Honest and frequent communications’ is a key challenge faced
by the company in achieving the Promised date Service Level. In addition, Respondent 5, 1, and
7 states that “Being flexible to meet the customers’ changing needs” is key challenge faced
through company for achieving Promised date Service Level.
Along with this, respondent 15 evaluates that “the firm’s ethical standards” is a key challenge for
attaining the promised date service level. In addition to this, respondent 4 states that “making it
easier for customers to seek assistance” and respondent 6 opines that “Determination of future
customer expectations” is key challenges faced by the company to accomplish the promised date
service level.
In addition to this, respondent 11 states that “Understanding how the customers use products and
services” is the main challenge faced by the company to accomplish the promised date service
level. Moreover, respondent 13 evaluates that “Employing routine follow-up procedures for
customer inquiries or complaints” is a key challenge faced by the company in order to attain the
promised date service level.
Q7: What are the gaps addressed by you in Requested date Service Level (RDSL) and
Promised date Service Level (PDSL)?

DISSERTATION 31
In this questionnaire, researcher has asked the question with respondents about the gaps
addressed by them in Requested date Service Level (RDSL) and Promised date Service Level. In
this way, respondents have shared their different perception regarding it and which is described
as given below:
Respondent 9: Competency to achieve due dates of delivery
Respondent 11, 13: Assurance regarding quality
Respondent 8, 5: Technical know-how
Respondent 4, 3: Price of resources, parts, as well as, services
Respondent 1, 6: Honest with recurrent interactions
Respondent 12: Industry understanding
Respondent 10: Assurance to constant enhancement in product
as well as process
Respondent 7: Ethical standards
Respondent 14: Financial stability as well as, staying power
Respondent 2, 15: The supplier has strategic significance to
company
The above table shows that respondent 9 states that “ability to meet delivery due dates” are gaps
addressed by the company in Requested date Service Level (RDSL) and Promised date Service
Level (PDSL). Respondent 11 and 13 evaluates that ‘Commitment to quality’ is gaps identified
by the company in the Requested date Service Level (RDSL) and Promised date Service Level
(PDSL). Furthermore, respondent 8 and 5 states that ‘Technical expertise’ is gaps addressed by
the company in the Requested date Service Level (RDSL) and Promised date Service Level
(PDSL).
In addition, respondent 4 and 3 states that ‘Price of materials, parts, and services’ is key gap
addressed by corporation in Requested date Service Level (RDSL) and Promised date Service
Level (PDSL). Respondent 1 and 6 evaluate that “Honest and frequent communications” are

DISSERTATION 32
gaps addressed through a corporation in Requested date Service Level (RDSL) and Promised
date Service Level (PDSL).
Respondent 12 states that “Industry knowledge”, respondent 10 opines that “Commitment to
continuous improvement in product and process”, and respondent 7 says that “Ethical standards”
are gaps addressed through corporation in Requested date Service Level (RDSL) and Promised
date Service Level (PDSL). Furthermore, respondent 2 and 15 states that “Supplier has strategic
importance to the firm” are gaps identified by corporation in Requested date Service Level
(RDSL) and Promised date Service Level (PDSL).
Q8: Which strategies could be used by you for filling the gaps between Requested date
Service Level (RDSL), Promised date Service Level (PDSL)?
In this question, researcher has asked regarding the strategies could be used by them for filling
the gaps between Requested date Service Level (RDSL), Promised date Service Level. In this
way, respondents gave their different opinion that is discussed as given below:
Respondent 1, 5: Early Supplier Involvement
Respondent 2, 9: Simplification regarding component elements
Respondent 12, 7: Application of prompt product development as
well as introduction time
Respondent 3, 13, 15: Standardization of element parts
Respondent 10, 14: Use of synchronized engineering
Respondent 4: Use of Value Analysis/Value Engineering
Respondent 6: The application of deployment of quality
function
Respondent 8 and 11: The modular design of components
Respondent 1 and 5 says that “Early Supplier Involvement” could be used by the company for
filling the gaps between Requested date Service Level (RDSL) and Promised date Service Level

DISSERTATION 33
(PDSL). Respondent 2 and 9 evaluates that “Simplification of component parts (trying to use
fewer parts)”, and respondent 12 and 7 states that “Use of quick product development and
introduction time” can be practiced to fulfill the gaps among Requested date Service Level
(RDSL) and Promised date Service Level (PDSL).
In addition to this, respondent 3, 13 and 15 says that “Standardisation of component parts (trying
to use more standard parts)” could be implemented for fulfilling the gaps among Requested date
Service Level (RDSL) and Promised date Service Level (PDSL). Respondent 10 and 14 states
that “Use of concurrent engineering (concurrent design of prod/process)” can be executed for
attaining the gaps between Requested date Service Level (RDSL) and Promised date Service
Level (PDSL).
In addition, respondent 4 evaluates that “Use of Value Analysis/Value Engineering” and
respondent 6 states that “the use of Quality Function Deployment” and respondent 8 and 11 says
that “Modular design of parts” could be implemented for attaining the gaps among Requested
date Service Level (RDSL) and Promised date Service Level (PDSL).
Q9: What are the consequences faced by you in case, goods are not delivered on Requested
date Service Level?
In this question, respondent has shared their opinion regarding the consequences faced by them
in case; goods are not delivered on Requested date Service Level. In such manner, respondents
have shared their different opinion regarding it that is shown as below:
Respondent 10, 5: Lost Sales
Respondent 9, 11, 4, 13: Lost Customers
Respondent 1, 8, 14: Negative Publicity
Respondent 2, 9, 6: High Costs
Respondent 7, 3, 12: Lower gross profits

DISSERTATION 34
The respondent 10 and 5 says that “lost sales” are the consequences faced by the company in
case goods are not delivered on Requested date Service Level. Along with this, respondent 9, 11,
4, and 13 says the “Lost Customers”, respondent 1, 8 and 14 states the “Negative Publicity”,
respondent 2, 9, and 6 states the “high costs”, and respondent 7, 3 and 12 says the “lower gross
profit” are the consequences faced in case, goods are not delivered on Requested date Service
Level.
Q10: How do you rate the service delivery in your organization?
In this questionnaire, researcher asked with respondents regarding giving the rate to service
delivery of organization. In this way, respondents have shared their different opinion that is
demonstrated as given below:
Respondent 9, 12, 1: “Very good”
Respondent 2, 6, 11: “Good”
Respondent 4, 8, 3: “Fair”
Respondent 7, 9, 13: “Poor”
Respondent 14, 5, 10: “Very poor”
The above table indicates that respondent 9, 12 and 1 says the “very good” for service delivery in
the organization, respondent 2, 6 and 11 states the “Good”, Respondent 4, 8, 3 evaluates the
“Fair” for service delivery in the organization. Respondent 7, 9, 13 opines the “Poor”, and
Respondent 14, 5, 10 states the “Very poor” for service delivery in the organization.
Conclusion
It can be concluded that researcher has asked different questions with the selected participants. In
such way, respondents have shared their different opinions and views regarding asked questions.
It is beneficial for attaining the aim and objectives of research. It can be also summarized that all

DISSERTATION 35
respondents have contributed in interview and shared depth information regarding research
concern.

DISSERTATION 36
Chapter 5 – Discussion
From the findings, it is discussed that KPIs measurements of logistics such as Requested date
Service Level (RDSL), Promised date Service Level (PDSL) is used for different purposes. This
finding is supported by the view of Ali et al. (2018), as it was evaluated that personal leadership
with coordination could be allocated easily between workforces. However, due to focus of
authority with responsibility, subordinate, the role of subordinate within company is diminishing
due to all right appropriate vests with headquarters. Hence, junior employees are only to consider
command of top management along with, function in an effective and efficient manner. They are
not allowed for creating a dynamic part in decision-making intentions. In certain conditions,
hotchpotch is created because of higher workload that consequence into the rapid decision.
Furthermore, Bureaucracy and Red-Tapism are one of limitations regarding centralization.
It is supported by the opinion of Heydari et al. (2018), as it was stated that decentralization is
associated with transferring power through the high extent of government to lower level. It is a
kind of organization structure in which, several units are certified to create autonomous verdict.
As a result, decision is developed prompter and by more skilled human resources rather than a
centralized system. Moreover, decentralization allows the new unit in terms of dealing as an
independent person that increases the elasticity along with, appropriateness of practices.
In contrast to this, Panda et al. (2017) evaluated that centralization is a kind of organization
structure where, individually one unit could be unauthorized to create an independent decision,
evaluating goals and objectives, and develop strategy. With the management aspect of the
company, centralization creates when parent company takes the power back as well as, functions
through subsidiaries as well as, put them in its central units. Moreover, centralization could be
accessed through macro-economic perspectives. The centralized state is a state that could ensure

DISSERTATION 37
the consistency of policy within restrictions. However, it avoids the particular needs of
individual states.
It is evaluated that different activity should be prioritized into supply chain management. This
finding is favored by opinion of Stauffer et al. (2016), as it was stated that the supervisor takes a
decision regarding allocation of authority to subordinates because of increasing competition.
Because of this, functional level managers create a chance for performing effectively and
presenting work autonomy. They also share responsibility about high-level executives that
resultant in rapid decision as well as savings of time. It is an effective procedure to expand
business company like mergers and acquisitions.
On the other hand, Panda et al. (2016) evaluated that the producer of consumer packaged
products, medical, and pharmaceutical system is creating continuous improvements into the
supply chain with significant advancement as presently as earlier time. This company focuses on
centralization into the supply chain and logistics in order to provide inventory on time. Because
of this procedure, a company emphasizes on creation of several business practices like
diminishing greenhouse gas emission, evaluating the energy practice, increasing the standard
regarding suppliers, lean manufacturing, feasible sourcing as well as, the sustainability of
procurement.
It is explained that there are different challenges faced by the company to achieve the Promised
date Service Level. This finding is favored by the views of Konur and Geunes (2016), as it was
discussed that decentralization focuses on transferring of administrative, local government,
political with fiscal authority via central government to regional authorities. Decentralization
state is a state, which forfeits uniformity regarding policies to meet specific needs for each
region. In decentralization, there is a lack of leadership and coordination however there is a lead

DISSERTATION 38
for inefficient control in over firm. With the intention of effective decentralization procedure,
open and free communication should be considered within a company. Along with this,
centralization is effective for the small-sized firms but large-sized corporation should consider
decentralization. Moreover, formal interaction is presented into centralized corporation. In
contrast to this, in the decentralization, communication could be stretched in all ways.
It is discussed that there are different gaps addressed by the company in the Requested date
Service Level (RDSL) and Promised date Service Level (PDSL). This finding is supported by
the perception of He (2017), as it was described that one of advantageous of centralized
distribution into the supply chain is to develop better control. Moreover, the company can create
central stores that are responsible for all activities, transporting their inventory as well as, while
essential for other stores that are attached with the capacity regarding production that is
positioned into several locations.
This finding is also favored by the opinion of Devika et al. (2016), as it was stated that 3M is
earlier known as Minnesota Mining and Manufacturing Company. This company produces over
55000 products like medical products, electronic materials, adhesives, laminates, optical firms,
and dental. This firm was started in the period of 2012 as well as, this company has created a
gigantic restructuring about the supply chain from linear as well as, analog structure regarding
technology.
This company practices centralization in its supply chain to manage the inventory and offering it
on time to consumers. In such case, digitalization is becoming taken for the choice of
coordinating all links associated with the supply chain of 3M, promoting the collaboration, free
communication at both down and upstream to suppliers as well as consumers (Nematollahi, et.
al., 2018).

DISSERTATION 39
It is also discussed that the responsibilities as well as, authorities are allocated by top-level
management to low extent of administration and it is called decentralization. It is against
centralization where, decision-making powers are delegated to departmental, unit and divisional
manager within organization. Moreover, decentralization can be illustrated as the addition of
allocation to power (Xu, Chen, and Bai, 2016).
It is evaluated that different strategies could be used by the company for filling the gaps between
Requested date Service Level (RDSL), Promised date Service Level (PDSL). This finding is
favored by the opinion of Gao et al. (2016), as it was discussed that inventory can minimum as
resources are ordered according to need of all other attached central stores. It is specifically in
the case of spares, equipment, fixtures, and techniques. By choosing the centralizing supply
chain, there is a need to pay rent, utility, and incidental expenditures related to various
warehouse is declined. The need to spend high on new equipment and technologies for each
logistics is eliminated. With these lessening into expenditures, a retailer can create pricing
approaches with more ease due to high constant nature about the management of inventory. It
will permit about the higher margins as well as, lower rates for customers.
In the centralization, because of power concentration in terms of individual, the decision could
take time. In contrast to this, decentralization could prove effective about administrative practice
as decisions are created faster to actions. There is leadership with coordination is considered into
centralization. In addition, decentralization shares about trouble of top-level executives. When a
corporation has insufficient control on management, in such case, centralization can be executed
whereas, company has full control on its administration, in such case; decentralization can be
executed (Serrou and Abouabdellah, 2016).

DISSERTATION 40
It is described that there are different consequences faced by the company in the case, goods are
not delivered on Requested date Service Level. This finding is supported by the view of (Modak,
et. al., 2018), as it was evaluated that depending on kind of business that a company delivers to
consumers, it has required for keeping the close eye about what it has in the stock. Through the
central distribution center, creating the kind of report is becoming inconceivable easy.
The firm has a requirement to go to one source rather than tracking down several reports via
several distribution centers. It is one of leading food and Beverage Company at international
level, PepsiCo is a parent corporation regarding different diverse as well as, beloved household
brands. In addition, company has dealt an effective job transitioning to its logistics capacity for
dealing with other multifaceted products for following the trends of consumers to high nutritious
foods as compared to carbonated soft drinks as well as, processed snacks (Panda, et al., 2016).
It is evaluated that PepsiCo practices centralization in its supply chain management such as
initiatives related to sustainability, creating inventory buffers, shared production arrangement as
well as, selective procurement as well as, sourcing for accomplishing the resilient and proficient
logistics. It is opined that centralization could be significant for small-sized corporation but
large-sized firm should use decentralization. Moreover, formal interaction is created into
centralization firm. In contrast to this, an interaction may stretch in all guidance under
decentralization (He, 2017).
It is illustrated that very good service delivery is used in an organization. This finding is favored
by the opinion of Devika et al. (2016), as it was discussed that the company should focus on its
assets about some facilities. It shows that the services would have highly skilled workforces,
latest technology, and significant equipment. The premium quality of facilities can be offered to
the customer with all of this in one service. It is discussed that the supply chain of Starbuck has

DISSERTATION 41
developed potential about the inefficiencies and the wastage of procurement. However, the
renowned firm is dedicated towards sustainability and efficiency as well as, it is effective to
maintain supply chain operation smoother as compared to expecting for firm with 15000 stores
in across 50 countries.
In addition, Starbuck is engaging in centralizing supply chain significant medium such as
centralizing management system, managing supplier association, committing to creation,
eliminating wastages and inefficiency, strict choices of suppliers, and leveraging the digital
technologies. The link of power as well as, authorities is in context of high extent of
administration and it is also alias as centralization (Venegas and Ventura, 2018).
Decentralization demonstrates the dispersal of authorities and power via top-level to
management of function level. Moreover, centralization is reliable and methodical attentiveness
regarding authority at the primary aspect. In contrast to this, decentralization is methodical
delegation regarding influence within an organization (Ravindran and Warsing Jr, 2016).
Conclusion
From the above interpretation, it can be concluded that there are different measures used in
supply chain management such as RDSL and PDSL. It is beneficial for company to effectively
manage the supply chain. It can be also concluded that there are different challenges faced in
managing the supply chain. It can be also summarized that different strategies could be used for
overcoming the challenges of supply chain measurements.

DISSERTATION 42
Chapter 6 – Conclusions and Recommendations
From the above interpretation, it can be concluded that there are different benefits of using KPIs
measurements of logistics such as Requested date Service Level (RDSL), Promised date Service
Level (PDSL). These are declining inventory in against of frees up capital investment, declining
time of setup, rising frequencies of delivery, declining size of lot, anticipatory maintenance,
declining inventory to depict manufacturing as well as, scheduling issues, Declining base of
supplier, and Purchasing through JIT suppliers. It can be also summarised that there is a different
activity that should be prioritized in supply chain management. These are On-time delivery to
products of firm and directly to end consumers, On-time delivery of purchased materials directly
to firm, evaluating the future needs of customers, boosting the capabilities of company in terms
of Just-In-Time (JIT) and Communicating about future strategic needs of company with the
suppliers.
It can be also concluded that there are different challenges faced in achieving the Promised date
Service Level. These are the Ability of company to attain due dates of delivery, Honest as well
as, frequent communications, Evaluation of potential expectations of customer, and Engaging
routine follow-up processes for customer inquiries and complaints. It can be summarised that
there are different gaps addressed in Requested date Service Level (RDSL) and Promised date
Service Level (PDSL). These are Technical know-how, Industry understanding, Financial
stability as well as, staying power, and the supplier has strategic significance to company.
It can be summarised that there are different strategies that could be used for filling the gaps
between Requested date Service Level (RDSL), Promised date Service Level (PDSL). These are
Simplification regarding component elements, Application of prompt product development as

DISSERTATION 43
well as introduction time, application of synchronized engineering, and The modular design of
components.
From above findings, it can be concluded that there are different consequences faced in case,
goods are not delivered on Requested date Service Level. These are Lost Sales, Lost Customers,
Negative Publicity, High Costs, and Lower gross profits. It can be also summarised that ‘very
good’ rate is provided in the context of service delivery in an organization.
Recommendations
It can be recommended that the company should use open communication in improving
centralization in the supply chain. Centralization entails adjustment as well as, adaptation
through involving all parties. When decision-making authority is taken away through plant
managers, newly developed team, corporate executives should communicate that they are
dealing as partners and not making efforts to consider other jobs (Tian, 2016).
Moreover, personnel may experience threatened as well as, assumes they would lose their
employments; in turn, they may making efforts to disrupt the project. Openly interacting with as
well as, respecting the issues of these people would not only support for creating team-oriented
atmosphere, however, it would be effective in supporting the projects. Moreover, decision-
makers and asking project managers at plant level for their views with supporting in a smooth
transition as well as, permitting them for continuing to include value (Ye, et. al., 2016).
Another significant aspect of communication is between workforces at the plant level. In
addition, supervisors within plant should share data and plants should in turn share data with
each other for creating transparency and enhance efficiency (Turken, et. al., 2017).
Inadequate transparency across the national network could avoid shippers through taking
benefits regarding optimization opportunities like backhauls as well as, milk-run routes.

DISSERTATION 44
Moreover, blending the carriers and grabbing more competencies permits for utilization of wider
resources as well as imitate the fundamental rationale regarding centralization (Wu, et. al., 2016).
Alteration through decentralized to the centralized system could be effective undertaking that
needs higher change management as well as, patience through everyone entailed. When a
company would be enabled to perform appropriately then these switches can consequence in
savings of cost, increased operational efficiencies, and enhanced visibility (Panda, et. al., 2015).
Whether creating a transition in phases and all at once, corporations should ensure they are
choosing a feasible operating system to support in attaining its business goals and comprehend
the processes and time for each phase along the way (Rahmani and Yavari 2019).
While producer focuses on adapting the centralized system, it needs to consider the daily
shipment model and transportation optimization model. Implementing transportation
management system enables load control center and makes competent to the company to
automate its scheduling, execution, reporting, optimization, planning and increases national
network transparency as well as, robust the computerized decision assistance. This transition will
make competent to the producer to leverage its total freight spending, provides adoption
regarding best practices as well as, driving initiatives of strategic cost savings (Alamdar, et. al.,
2018).
The strategy for adopting a centralized model is to standardize the policies and processes of the
manufacturer. It is evaluated that each of plant operated independently, and some of the sites had
workforces to manage the freight full-time, whereas in other customer service representation or
other staff dealt transportation in addition to primary accountabilities. Moreover, no standardized
transportation management activities are followed and no regular carrier performance and KPI

DISSERTATION 45
monitoring are required. Centralization permits the company for adopting a model that
developed standardized practices as well as, technology (Alexander, 2015).

DISSERTATION 46
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DISSERTATION 48
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DISSERTATION 51
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DISSERTATION 52
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DISSERTATION 53
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DISSERTATION 54
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DISSERTATION 55
Appendix: Results of interview
Q4: Why do use KPIs measurements of logistics such as Requested date Service Level
(RDSL), Promised date Service Level (PDSL)?
Respondents response Theme regarding logistics
Respondent 5, 4, 15: Declining inventory in against of frees up
capital investment
Respondent 7, 2, 11: declining setup time
Respondent 9: Rising frequencies of delivery
Respondent 13, 6: Declining size of lot
Respondent 1, 14: Anticipatory maintenance
Respondent 8, 3:
declining inventory to depict manufacturing as
well as, scheduling issues
Respondent 10: Declining base of supplier
Respondent 12: Purchasing through JIT suppliers
Q5: Which activity should be prioritized in supply chain management?
Respondents response Theme regarding logistics
Respondent 9, 14: On-time delivery to products of firm and directly to end consumers
Respondent 1, 6: On-time delivery of purchased materials directly to firm
Respondent 15, 10: Evaluating the future needs of customers
Respondent 2, 13, 7: boosting the capabilities of company in terms of Just-In-Time (JIT)
Respondent 3, 5: Contacting end-users of own products in order to get feedback
regarding performance as well as, customer service
Respondent 6: Declining response time diagonally supply chain

DISSERTATION 56
Respondent 8, 12: Developing more frequent contact to members associated with own
supply chain
Respondent 11: Developing higher extent of trust between members of supply chain
Respondent 4: Communicating about future strategic needs of company with the
suppliers
Q6: What challenges faced by you in achieving the Promised date Service Level?
Respondent 2: Ability of company to attain due dates of
delivery
Respondent 3, 12, 10: Quality of products as well as services
Respondent 9: Successful resolution regarding complaints of
customer
Respondent 8, 14: Honest as well as, frequent communications
Respondent 5, 1, 7: Being resilience to attain the changing needs of
customers
Respondent 15: Ethical standards of firm
Respondent 4: Making it easier for consumers to seek support
Respondent 6: Evaluation of potential expectations of
customer
Respondent 11: comprehending how customers exercises
products and services
Respondent 13: Engaging routine follow-up processes for

DISSERTATION 57
customer inquiries and complaints
Q7: What are the gaps addressed by you in Requested date Service Level (RDSL) and
Promised date Service Level (PDSL)?
Respondent 9: Competency to achieve due dates of delivery
Respondent 11, 13: Assurance regarding quality
Respondent 8, 5: Technical know-how
Respondent 4, 3: Price of resources, parts, as well as, services
Respondent 1, 6: Honest with recurrent interactions
Respondent 12: Industry understanding
Respondent 10: Assurance to constant enhancement in product
as well as process
Respondent 7: Ethical standards
Respondent 14: Financial stability as well as, staying power
Respondent 2, 15: The supplier has strategic significance to
company
Q8: Which strategies could be used by you for filling the gaps between Requested date
Service Level (RDSL), Promised date Service Level (PDSL)?
Respondent 1, 5: Early Supplier Involvement
Respondent 2, 9: Simplification regarding component elements
Respondent 12, 7: Application of prompt product development as
well as introduction time
Respondent 3, 13, 15: Standardization of element parts
Respondent 10, 14: Use of synchronized engineering

DISSERTATION 58
Respondent 4: Use of Value Analysis/Value Engineering
Respondent 6: The application of deployment of quality
function
Respondent 8 and 11: The modular design of components
Q9: What are the consequences faced by you in case, goods are not delivered on Requested
date Service Level?
Respondent 10, 5: Lost Sales
Respondent 9, 11, 4, 13: Lost Customers
Respondent 1, 8, 14: Negative Publicity
Respondent 2, 9, 6: High Costs
Respondent 7, 3, 12: Lower gross profits
Q10: How do you rate the service delivery in your organization?
Respondent 9, 12, 1: “Very good”
Respondent 2, 6, 11: “Good”
Respondent 4, 8, 3: “Fair”
Respondent 7, 9, 13: “Poor”
Respondent 14, 5, 10: “Very poor”