A CASE STUDY ON CENTRALIZATION OF SUPPLY CHAIN NETWORK PLANNING

Veronica Natera, University of Houston, Houston, Texas, U.S.A.
Liang-Chieh (Victor) Cheng, University of Houston, Houston, Texas, U.S.A.

Published in

INTERNATIONAL JOURNAL OF BUSINESS RESEARCH
Volume 18, Issue 4, p35-46, December 2018

ABSTRACT

This paper presents a case study that examines how a nationwide corporation take the challenge of reconfiguring a supply chain network to implement changes. The research addresses the issues related to the strategies and actions to reorganize a supply chain and the approach to define critical indicators to measure success. The case studies an extensive supply chain network that transitions from a decentralized, three-headquarters system to a fully centralized, single headquarters system in order to save money, improve internal communication, and optimize the overly allocated resources. The findings serve as an example of the benchmark in association with strategic changes and the subsequent impacts in a supply chain context. As such, the present research contributes to the supply chain literature with the knowledge as to how researchers and practitioners can manage large-scale changes and monitor improvements for a supply chain, not only during a short run but for the long, sustainable future.

Keywords

Supply Chain Management, Network Planning, Communication, Cost Management, Centralization, Decentralization


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