Some of the advantages of decentralization are the coordination of supply policies and procedures and the ability to manage and negotiate requirements with common suppliers.

Explain the advantages and disadvantages of decentralisation and delegation of authority.

What are the challenges faced by a supply manager working in a highly centralized structure? In a highly decentralized structure?

Select all that applyWhich of the following are disadvantages of decentralization? Multiple select question.The layers of required approvals and decisions often cause slow customer response time.Lower-level managers may make decisions without understanding the big picture.Decision-making authority is removed from those with the most detailed information about the day-to-day operations.Lower-level managers may have objectives that differ from the objectives of the entire organization.Coordination among departments may be lacking.

The key question in strategic supply management isMultiple ChoiceHow can supply and supply chains contribute effectively to organizational objectives and strategy?How can the supply manager develop a network of suppliers that contribute to the supply department’s goals?How can first-tier suppliers contribute to the buying organization's objectives and strategy?How can key suppliers contribute to the buying organization's objectives and strategy?How can supply strategy be kept separate from, but equal to, organizational strategy?

When suppliers have sufficient power, they can influence the terms and conditions of what they supply to producers.