What are the differences between a centralized and a decentralized logistics department?
What are the differences between a centralized and a decentralized logistics department?
A centralized logistics organization means that the company maintains a single logistics department that oversees the related operations for the entire company from the home office. A decentralized logistics organization implies that at the divisional or product group level and sometimes in various geographic areas, logistics-related decisions are taken separately.
There are benefits of both methods, with its relative productivity being a primary benefit of centralization, while its consumer responsiveness is a primary benefit of decentralization. Centralization enables a business to take advantage of the cost savings that can come from volume-creating possibilities.
Step by step
Solved in 2 steps
