Designing the "Right" Supply Chain Management Organizational Structure

Description

This publication defines and describes important aspects of organizational design decisions, and compares the strengths and weaknesses of specific organizational reporting structures. As part of this comparison, organizational design decisions are also examined through an analysis of data collected from a survey of 292 firms. Further, the research examines financial performance associated with different structural approaches.

Founded in 1963, the Council of Supply Chain Management Professionals (CSCMP) is the preeminent worldwide professional association dedicated to the advancement and dissemination of research and knowledge on supply chain management. With over 8,500 members representing nearly all industry sectors, government, and academia from 67 countries, CSCMP members are the leading practitioners and authorities in the fields of logistics and supply chain management.

Sample Content

Table of Contents

Executive Summary    4

Supply Chain Management Organizations Are Rapidly Changing    5

What Do SCMO Structures Look Like?    6

Sidebar: Defining a Supply Chain Management Organization    6

Sidebar: Defining Organizational Design    6

Leadership    6

Sidebar: Research Background    7

Functional Span of Authority    8

Reporting Structures    8

Functional Reporting Structures    11

Divisional Reporting Structures    12

Centralized Matrix Reporting Structures    14

Hybrid Matrix Reporting Structures    15

Coordinating Structures    16

Lessons Learned In Designing SCMOs    19

SCMO Design and Performance Outcomes    20

Single/Dominant Business Firms    20

Multi-Business Firms    22

A Look at Financial Performance    22

The Hybrid Matrix Reporting Structure    26

Moving to a Hybrid Matrix Organization    28

Conclusions    30

Endnotes    31

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