Centralized Vs Decentralized Systems – Coursework Example

Centralized Vs. Decentralized Systems Centralized Vs. Decentralized Systems Every company is looking for different ways of dealing with new problems and challenges at the workplace. The aim is to enable real-time reporting and implementation of various company policies so as to manage the changing product expectations from the clients. This all boils down to whether there is a centralized or decentralized system in the organization. An increase in control exercises implies an increase in the power hierarchy within the organization. This represents a centralized system that requires people to get permission before anything changes within the system and that may take longer than necessary. Decentralized systems offer a staggered approach where those at the lower tier of administration have the ability to make decisions and engage employees in making the best choices for the organization.
In the supply chain business, it is always important to have different people with various expertise and knowledge dealing with issues across the organization. It shows a need to provide them with the space to deal with the business objectives at the lowest level based on their targets and in line with corporate strategy. Decentralizing the system will allow different departments to interact and formulate platforms that will manage the supply chain in an effective manner. The people need to learn how to organize processes using the available technology so as to establish business solutions that reduce costs and increase sales. This will increase operational efficiency and enable rapid responses to customer requests. Increased efficiency will increase customer satisfaction and make marketing more effective. It will lower costs of customer acquisition and increase revenues. Decentralized systems, therefore, have a huge advantage when examining the supply chain systems.