Over on Supply Excellence, Tim Minahan just posted an entry that talks about how Nokia has made a successful transition to a (mostly) center-led procurement organizational structure. Tim talks about how Nokia set out on a path to move to a "centralized organization with a strong matrix across regions ... which blends spend leverage, process standardization, and knowledge- and resource-sharing attributes of centralization with the local empowerment and execution characteristics of the decentralized model." For many companies, a complete centralized model is impractical for structuring procurement and supply chain operations, especially when it comes to global direct materials management across multiple independent business units. But the Nokia approach, which blends regional and limited decentralized elements with centralized governance, might prove a great compromise for many an organization.
. Jason Busch