An enterprise is considered decentralized if their basis of function is autonomous. Every unit would be responsible for their own logistical planning as well as its execution. A centralized organization has the opposite policy. A central headquarters group directs logistical planning and execution. In today‘s organization, which is information-intense, the distinction between centralization and decentralization is becoming hazy. Recent trends have seen a shift towards centralized organizations. But with the recent developments in distributed information processing, a centralized logistics organization is no longer required for efficient data processing.
Logistical responsibility gets pushed down the organization, as a result. Basically, there is a direct relationship between the desired degree of centralization and the complete nature of business operations.
Customers who desire a host of products sold by different business units of a conglomerate have encouraged many cross-divisional or various business units. The availability of information technology is considered a major benefit of decentralization. Today‘s organizations, which are agile simultaneously, enjoy both centralization and decentralization.
