Gartner Research

Four Design Principles for Successful Supply Chain Organization Design

Published: 17 February 2017

ID: G00323015

Analyst(s): Ken Chadwick, Dana Stiffler

Summary

Successful organization design is more than drawing organization charts — it involves identifying solutions that enable staff to achieve defined outcomes. This research outlines four design principles supply chain leaders must consider for a more integrated organization structure.

Table Of Contents
  • Key Challenges

Introduction

Analysis

  • Align the Supply Chain Organization With Business Needs by Detailing Commercial, Strategic and Operational Requirements
    • Align to the Needs of the Commercial Business
    • Align the Organization Design to Supply Chain Strategy
    • Align to Operational Needs and Capabilities
  • Optimize the Outcomes You Are Trying to Achieve by Balancing Competing Demands on Control for Supply Chain Functions, Processes and Assets
    • Balance Complexity and Tension
    • Balance Centralization and Decentralization
    • Balance Standardization and Customization
  • Manage the Overlaps and Gaps in the Supply Chain by Using Linking Mechanisms at the Intersections of Key Processes and Accountabilities
  • Embed Core Capabilities and Maintain Responsiveness by Constantly Evolving the Organization

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