Is Kellogg’s a more efficient or responsive company? When creating a network design for Kellogg’s would...

Is Kellogg’s a more efficient or responsive company? When creating a network design for Kellogg’s would a centralized or decentralized design better support their competitive strategy. Explain your answer.

Expert Solution

Kellogg's has shut down many of its sub-distributors and moving towards a centralized distribution model.

It decreases the responsiveness of the supply chain. However, it improves the efficiency of the supply chain due to reduction of cost resulting from economy of scale. Kellogg's is estimated to save 15-20% in logistics due to the new centralized distribution model.

keosha answered 2 years ago

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