which of the following is an advantage of a centralized logistics organization? course hero

Full Answer

Why is a chain of command important in a centralized organization?

What is centralized management?

How does centralization affect work?

How is decision making made in a centralized organization?

What happens when lower level managers are involved in decision making?

Why is chain of command important?

What is centralization in business?

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6 Examples of Centralization - Simplicable

Regulations & Standards Regulations and similar rules such as standards serve to centralize design, decision making and policy. For example, a city with strict and detailed building codes such that houses end up looking much the same with little possibility of innovation or creative expression.

Centralization: Factors, Advantages and Disadvantages

ADVERTISEMENTS: Centralization is a common occurrence in small enterprises. The success of a small enterprise depends upon the dynamic manager who single-handedly commands the running of the concern. He takes all the decisions himself and entrusts only implementation to the subordinates. There is a direct link between the proprietor and his employees. He personally supervises […]

How Can Decentralization Make Your Supply Chain More Efficient?

Before the evolution of broadband internet and cloud computing, a single centralized location made a lot of sense. The costs of servers and infrastructure could be shared across departments and economies of scale translated to dramatic cost savings.

What is the supply chain?

The term supply chain refers to the many links that a product goes through on the way to a customer. The efficiency of that supply chain is a function of the amount of cost and effort to move the product, and how quickly the product needs to be moved.

What is decentralized distribution?

When a business moves into a decentralized distribution model, the product moves further away from the key stakeholders at the “central” corporate office and closer to the end customer. While this can be accomplished through self-owned warehouse and logistics, a managed decentralized logistics network is far more agile than its counterpart.

How many Amazon stores will be open in 2021?

E-commerce giant Amazon continues to open more distribution centers around the world. To better control the last mile, they are looking at opening up to 3,000 Amazon Go stores by 2021 where customers can purchase online and conveniently pick up their items on the way home. To compete with that level of expectation, decentralized logistics can help small e-commerce businesses stay competitive with companies like Amazon.

What is the last mile in supply chain?

One of the main challenges in the supply chain is the last mile - the final leg from the distribution center to the customer. Is it better to keep larger quantities in one central location, or distribute smaller quantities closer to the customer? This is one of the major factors in deciding between centralized and decentralized logistics.

Why is it important to test systems before rolling out to the entire organization?

The ability to test systems, products, markets, and suppliers on a small scale before rolling out to the entire organization can lead to better data-driven decisions.

How to maintain bargaining power with suppliers?

Maintain bargaining power with suppliers by shipping in bulk to a single location.

Why is a chain of command important in a centralized organization?

A centralized organization benefits from a clear chain of command because every person within the organization knows who to report to. Junior employees know who to approach whenever they have concerns about the organization. On the other hand, senior executives follow a clear plan of delegating authority to employees who excel in specific functions. The executives also gain the confidence that when they delegate responsibilities to mid-level managers and other employees, there will be no overlap. A clear chain of command is beneficial when the organization needs to execute decisions quickly and in a unified manner.

What is centralized management?

Centralized management resembles a dictatorial form of leadership where employees are only expected to deliver results according to what the top executives assign them. Employees are unable to contribute to the decision-making process of the organization, and they are merely implementers of decisions made at a higher level. When the employees face difficulties in implementing some of the decisions, the executives will not understand because they are only decision-makers and not implementers of the decisions. The result of such actions is a decline in performance because the employees lack the motivation to implement decisions taken by top-level managers without the input of lower-level employees.

How does centralization affect work?

Centralization results in delays in work as records are sent to and from the head office. Employees rely on the information communicated to them from the top, and there will be a loss in man-hours if there are delays in relaying the records. This means that the employees will be less productive if they need to wait long periods to get guidance on their next projects.

How is decision making made in a centralized organization?

In a centralized organization, decisions are made by a small group of people and then communicated to the lower-level managers. The involvement of only a few people makes the decision-making process more efficient since they can discuss the details of each decision in one meeting. The decisions are then communicated to the lower levels of the organization for implementation. If lower-level managers are involved in the decision-making process, the process will take longer and conflicts will arise. That will make the implementation process lengthy and complicated because some managers may object to the decisions if their input is ignored.

What happens when lower level managers are involved in decision making?

If lower-level managers are involved in the decision-making process, the process will take longer and conflicts will arise.

Why is chain of command important?

A clear chain of command is beneficial when the organization needs to execute decisions quickly and in a unified manner. 2. Focused vision. When an organization follows a centralized management structure, it can focus on the fulfillment of its vision with ease.

What is centralization in business?

What is Centralization? Centralization refers to the process in which activities involving planning and decision-making within an organization. Corporate Structure Corporate structure refers to the organization of different departments or business units within a company. Depending on a company’s goals and the industry.

Why is communication important in a decentralized warehouse?

Communication and coordination between the corporate headquarters and the warehouses and between the warehouses themselves is an important factor, especially in a decentralized warehouse. It must always be known exactly how much and which goods or which material is in which warehouse in order to be able to plan the optimal transport routes and save costs; professional recording and communication of warehouse stocks and stock movements are therefore indispensable (see also Inventory Management ).

What is central warehouse?

A central warehouse bundles the entire assortment (see also Assortment Dimensions) of one or more manufacturers. As a rule, customers are supplied from a single location, while decentralized solutions have several strategically and geographically distributed warehouses that do not hold the entire product range in stock.

How do warehouses differ from each other?

Basically, two types of warehouse differ from each other: central warehousing on the one hand and decentralized warehousing on the other . In a central warehouse, storage costs are usually low, while transport costs are high. In decentralized warehousing, on the other hand, the opposite is true.

What is optimal distribution?

These do not necessarily have to be operated by the company itself, they can also be operated by logistics service providers, as is the case with central warehouses.

Is there a high turnover in a central warehouse?

Since, as already mentioned, ‘all’ orders and thus all shipments are handled exclusively from a central location, there is a high turnover within a central warehouse; this often requires an equally high degree of automation. The high level of automation of a central warehouse is also facilitated by the fact that it is easier to implement article-specific warehousing and standardization; the administrative effort is also lower. However, not all customer wishes/orders can be fulfilled equally quickly, since, for example, the distances to the customer vary greatly at a single location.

Why is a chain of command important in a centralized organization?

A centralized organization benefits from a clear chain of command because every person within the organization knows who to report to. Junior employees know who to approach whenever they have concerns about the organization. On the other hand, senior executives follow a clear plan of delegating authority to employees who excel in specific functions. The executives also gain the confidence that when they delegate responsibilities to mid-level managers and other employees, there will be no overlap. A clear chain of command is beneficial when the organization needs to execute decisions quickly and in a unified manner.

What is centralized management?

Centralized management resembles a dictatorial form of leadership where employees are only expected to deliver results according to what the top executives assign them. Employees are unable to contribute to the decision-making process of the organization, and they are merely implementers of decisions made at a higher level. When the employees face difficulties in implementing some of the decisions, the executives will not understand because they are only decision-makers and not implementers of the decisions. The result of such actions is a decline in performance because the employees lack the motivation to implement decisions taken by top-level managers without the input of lower-level employees.

How does centralization affect work?

Centralization results in delays in work as records are sent to and from the head office. Employees rely on the information communicated to them from the top, and there will be a loss in man-hours if there are delays in relaying the records. This means that the employees will be less productive if they need to wait long periods to get guidance on their next projects.

How is decision making made in a centralized organization?

In a centralized organization, decisions are made by a small group of people and then communicated to the lower-level managers. The involvement of only a few people makes the decision-making process more efficient since they can discuss the details of each decision in one meeting. The decisions are then communicated to the lower levels of the organization for implementation. If lower-level managers are involved in the decision-making process, the process will take longer and conflicts will arise. That will make the implementation process lengthy and complicated because some managers may object to the decisions if their input is ignored.

What happens when lower level managers are involved in decision making?

If lower-level managers are involved in the decision-making process, the process will take longer and conflicts will arise.

Why is chain of command important?

A clear chain of command is beneficial when the organization needs to execute decisions quickly and in a unified manner. 2. Focused vision. When an organization follows a centralized management structure, it can focus on the fulfillment of its vision with ease.

What is centralization in business?

What is Centralization? Centralization refers to the process in which activities involving planning and decision-making within an organization. Corporate Structure Corporate structure refers to the organization of different departments or business units within a company. Depending on a company’s goals and the industry.