The Gartner Supply Chain Podcast

A New Way to Think About Supply Chain Organization Design

Episode Summary

Traditional supply chain organization design focuses on how “centralized” or “decentralized” an operating model is, often conflating and obscuring accountability and control. This episode of the Supply Chain Podcast explores an approach focused on fit-for-purpose integration and differentiation.

Episode Notes

his episode explores:

• Why organization design has become so important to chief supply chain officers (CSCOs). (1:15)
• Reasons for the recommended shift away from centralization and decentralization. (2:35)
• Examples of integration in real supply chains. (4:29)
• An overview of the six supply chain “archetypes” — that is, distinct ways supply chains organize themselves through integration and differentiation. (7:53)
• Recommendations for redesigning supply chain organizations. (15:28)

Host Caroline Chumakov and Gartner Senior Research Director Alan O’Keeffe dive into supply chain organization redesign through the lens of integration and differentiation. They discuss six supply chain “archetypes,” frameworks that supply chain leaders can use to cleanly evaluate their enterprise’s reporting lines, leadership, scope of work and more, as they design fit-for-purpose supply chains. 

Caroline and Alan also explore pitfalls prevalent in traditional “centralization versus decentralization” supply chain organization design, specifically its polarized, all-or-nothing approach. Finally, they close the show with recommendations for supply chain leaders pursuing supply chain organization design by offering the six archetypes as a starting point.