This document discusses organizational structures that support effective supply chain management. It proposes that organizational structure types can be defined based on the level of formalization and centralization of the supply chain management department, and the hierarchical relationship between the SCM department and other functional departments. The paper aims to empirically test which types of organizational structures are best for supply chain management performance. It finds that while too much formalization and centralization of the SCM department can disrupt integration, some control by the SCM department is needed to establish integrated supply chain management. However, organizational structures that balance the SCM department's control with its relationship to other departments may be most effective long-term. The best structure may depend on firm and environmental characteristics.

Organizational Structures and The Performance of Supply Chain Management PDF

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