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ISM LEAD Exam - Topic 6 Question 41 Discussion
Topic #: 6
A center-led supply management organization is BEST described as having which of the following types of decision-making structures?
A center-led supply management organization combines elements of both centralized and decentralized decision-making structures, making it a hybrid structure. In a center-led model, strategic decisions and policies are typically centralized to ensure consistency and leverage economies of scale, while operational decisions and daily activities are decentralized to allow for flexibility and responsiveness to local needs. This structure allows organizations to balance the benefits of both centralization (such as cost savings and standardization) and decentralization (such as increased agility and local responsiveness).
Cousins, P. D., Lamming, R. C., Lawson, B., & Squire, B. (2008). Strategic Supply Management: Principles, Theories and Practice. Pearson Education.
Monczka, R. M., Handfield, R. B., Giunipero, L. C., & Patterson, J. L. (2015). Purchasing and Supply Chain Management. Cengage Learning.
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