Many organizations are centralizing logistics functions to consolidate operations and improve efficiency.
The benchmarking data show that efforts to consolidate logistics have the potential to reduce needed warehouse space – and the associated costs – as well as standardize logistics processes.
How do you determine whether centralized logistics structures also improves logistics performances? If you study the following:
Quality of deliveries, inventory management, and logistics costs of organizations using a centralized structure with those using a decentralized structure, results indicate that whether an organization has a centralized or a decentralized logistics structure makes little difference to the quality of orders actually shipped to customers.
We will discuss the financial and corporate advantages and disadvantages of centralization vs non centralization.
John Vogt, Former Vice President of Global Logistics, Halliburton and Visiting Professor, University of Houston