Organizing Supply Chains in a Time of Change

Organizational Coordinating Structures

The previous section discussed the reporting structures firms use to illustrate the organizational level (e.g., corporate, divisional) where SCM activities are managed, as well as what functional responsibilities are positioned under the SCMO. The reporting structures, reflecting both the responsibilities and lines of authority, represent the vertical structure. Given that many SCM decisions and activities cross responsibilities, functions, and lines of authority, a lateral organization is needed on top of the vertical structure in order to accomplish supply chain tasks. The lateral organization structure refers to the coordination of activities across the vertical reporting structure. We uncovered four ...