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Do companies that are successful with S&OP typically have centralized or decentralized operational management?

April 26, 2017centralized companies decentralized Management operational successful

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Do companies that are successful with S&OP typically have centralized or decentralized operational management?

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There are examples of both. Some are highly centralized, with a single VP in charge of each function, reporting to a single CEO. This is often the model in a smaller company. Others have general managers or product teams responsible for the entire performance of a given product line, and only the very large, capital-intensive decisions go to the CEO. In some cases, manufacturing is more centralized or decentralized, than sales or marketing, or product development; in other cases, it’s sales or marketing that’s more decentralized.