What is the difference between centralized and decentralized supply chain? Advantages and Disadvantages of each

Question

Accepted Answer

Centralized supply chain is controlled by a single entity, while decentralized supply chain involves multiple independent entities.

Centralized supply chain has a single point of control and decision-making, while decentralized supply chain allows for more autonomy and decision-making at various levels.
In a centralized supply chain, all operations and processes are coordinated and managed by a central authority, while in a decentralized supply chain, each entity has its own control over operations.
Centralized supply chain offers better coordination and efficiency, as decisions can be made quickly and uniformly, while decentralized supply chain allows for more flexibility and customization.
Advantages of centralized supply chain include streamlined processes, economies of scale, and better visibility and control over the entire supply chain.
Advantages of decentralized supply chain include faster response times, local market knowledge, and reduced dependency on a single entity.
Disadvantages of centralized supply chain include lack of agility, potential bottlenecks, and higher vulnerability to disruptions.
Disadvantages of decentralized supply chain include coordination challenges, potential duplication of efforts, and difficulty in maintaining consistency and standardization.

Top Accenture interview questions & answers