A recent article on the Supply Chain Brain site by Enporion did a great job of outlining the necessary requirements for organizational success in your supply chain. Even though a center-led model is usually optimal, as it lets you take advantage of the best aspects of the centralized and decentralized organizational models, it’s only truly optimal if:
- The Organizational Model Fits the Corporate Strategy
Successful supply chain organizations are designed to specifically address where strategic decision are made and the knowledge that is needed to make those decisions.
- The Organizational Model Fits the Corporate Culture
Successful supply chain organizations match the actual corporate culture, not an imagined one, and feel natural to the people who bring the model to life.
- The Organization Model Accounts for Staff Skills and Expertise
The model is designed to make sure that the right people are in the right job in the right numbers at the right place at the right time.
- The Governance Structure Elevates the Supply Chain Function
Leaders of successful supply chain organizations sit at the table with the rest of the C-level executives.
- There are Mechanisms that Enable Collaboration and Communication
Supply chain staff are close to the operations and business units and communicate regularly with cross-functional teams, category teams, supply councils, executive committees, and other stakeholders.
- The Information Systems Support the Function
The technology meets the need of the organization.