Decentralize to Improve Supply Chain Efficiency

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Jacob
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Re: centralized or decentralized supply chain?
Jacob   10/18/2013 2:43:48 PM
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"Supply chain plays a key role in balanced trade of any country and decentralization helps minimize the opportunistic behavor of corporations."

Apek, there is no doubt that local sourcing the material can minimize the procurement and logistic costs.

apek
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Re: centralized or decentralized supply chain?
apek   10/18/2013 12:34:17 AM
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The problem is profit at cost of National Security...this is where the Legitimacy of Supply Chain becomes a problem. Supply chain plays a key role in balanced trade of any country and decentralization helps minimize the opportunistic behavor of corporations.

Jacob
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Re: centralized or decentralized supply chain?
Jacob   10/17/2013 11:34:05 PM
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Apek, thanks for the link. One more reason is convinence, nobody have the time to surf and found, where these materials are availabile at cheaper cost

apek
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Re: centralized or decentralized supply chain?
apek   10/17/2013 1:21:20 AM
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True. This is because today because of Globalization the SUPPLY chain has become distorted due to MNCs manufacturing goods from LLCs. Please read my article on Distorted Supply Chain http://truth-out.org/news/item/18140-distorted-supply-chain-caused-by-mncs-manufacturing-abroad-and-how-to-restore-its-legitimacy#!

Jacob
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Re: centralized or decentralized supply chain?
Jacob   10/16/2013 11:01:54 PM
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"I have given preference to Decentralized Supply chain because it increases co-operation between individual units in supply chain over competition. In case of Competition there is also a tendency to Monopolize the Supply Chain through killing competition with Mergers and Acquisitions."

Apek, good point. But now a day's companies are preferring to get all services from a single vendor rather than pick and choose from different vendors.

apek
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Re: centralized or decentralized supply chain?
apek   10/15/2013 9:59:41 PM
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Jacob,

While you believe that a combination of both is good, I have given preference to Decentralized Supply chain because it increases co-operation between individual units in supply chain over competition. In case of Competition there is also a tendency to Monopolize the Supply Chain through killing competition with Mergers and Acquisitions. Once you have a monopoly...then the Supply chain becomes distorted and there is no longer any healthy competition. 

Let me know your thoughts regarding this.

Jacob
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Re: parallel
Jacob   10/15/2013 4:31:04 AM

"Decentralized Supply chain would be beneficial to all businesses because Consumer purchaing power would be high and hence would the economic demand be high."

Apek, decentralized supply chain is good in certain aspects, where the companies can source the material and components from the local market, as and when required. This will help to reduce the logistic issues and more economic too.

Jacob
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centralized or decentralized supply chain?
Jacob   10/15/2013 12:00:57 AM
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Apek, centralized supply chain or decentralized supply chain, which one is preferable? I think this debated is happening for more than a decade. But what I prefer is a combination of both of this, so that supply will be more convenient.

apek
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Re: parallel
apek   10/12/2013 2:24:17 PM
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There should be a Centralized government because governing authority of country should be centralized. I am talking about having a Decentralized economy. We have a Centralized economy in US which is controlled by Wall Street and their lobbyist in Washington ( who in fact also control the government). Instead, We should have a Decentralized economy where the local government works for local people and businesses also give preference to hiring local residents creating less unemployment. Until US develops its local economy...we will never solve our Consumer Debt and National Debt problems. Decentralized Supply chain would be beneficial to all businesses because Consumer purchaing power would be high and hence would the economic demand be high.

FLYINGSCOT
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parallel
FLYINGSCOT   10/12/2013 1:03:45 PM
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There are many parallels in government and this is the eternal debate of centralized vs decentralized control.  As soon as anyone finds the optimum pllease tell me as I have been searching for years to no avail.

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EBN Dialogue enables you to participate in live chats with notable leaders and luminaries. Open to the entire EBN community of electronics supply chain experts, these conversations see ideas shared, comments made, and questions asked and answered in real time. Listed below are upcoming and archived chats. Stay tuned and join in!
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Live Chat 10/30: Top 10 Metrics That Enhance Procurement Performance
We'll be talking about the 10 most important procurement performance metrics, from the old standards to new and emerging best-practices.
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Live Chat 11/06: Enterprise Risks, Intellectual Property & Supply Chains
Enterprise risk management (ERM) frameworks can be useful to identify, assess, and manage intellectual property (IP) risks that arise in supply chain compliance. We'll look at real-world examples and strategies for mitigating those risks.
11/6/2014
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Live Chat 10/16: Applying a Macroeconomic Lens to the Supply Chain
EBN blogger Apek Mulay will be our guest as we talk about how macroeconomic reforms have the potential to impact the supply chain.
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Dave Bowen, CEO of e-sourcing firm MarketMaker4, will be our guest as we explore ways to minimize and manage geo-political and corporate risk in supply chain and sourcing through the use of technology.
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