Centralized vs. Decentralized Logistics
An organization should determine whether or not to centralize its logistics structure based on its strategic goals. However, the majority of organizations participating in APQC’s Open Standards Benchmarking research in logistics have adopted a centralized logistics structure. APQC has found that centralization can potentially decrease costs by reducing the needed warehouse space, consolidating operations, expanding channel activities, and standardizing logistics processes. Read this performance driver from APQC’s Blueprint for Success: Logistics.