Strategic Supply Chain Management Practice Exam

What factor contributes to fragmentation of supply chain ownership?

1. Centralized manufacturing

2. Increased collaboration

3. Complex stakeholder networks

4. Standardized supply practices

The correct answer is: Complex stakeholder networks

Fragmentation of supply chain ownership is primarily influenced by complex stakeholder networks. In supply chains, various stakeholders, including suppliers, manufacturers, distributors, retailers, and customers, often interact and operate independently, leading to a scenario where ownership and responsibility do not reside in a single entity. This complexity arises because different stakeholders may have competing interests, diverse processes, and various levels of control and communication, resulting in a fragmented landscape where clear ownership and accountability can be challenging to maintain. The presence of numerous parties involved in different phases of the supply chain further contributes to this fragmentation. Each entity may prioritize its objectives, which can create silos and complicate decision-making processes. This fragmentation can lead to inefficiencies, challenges in coordination, and difficulty in achieving a unified strategic vision across the supply chain. In contrast, factors like centralized manufacturing, increased collaboration, and standardized supply practices generally promote integration and coordination among stakeholders, helping to mitigate fragmentation rather than contribute to it.