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Excessive division of labor can create bureaucracies with deeply entrenched silos mentality

The global supply chain has become increasingly complex in recent years. As organizations strive to cut costs and stay competitive, the excessive division of labor can create bureaucracies with deeply entrenched silos mentality.
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Global Supply Chain Group - vivek BWVivek Sood: Sydney based managing director of Global Supply Chain Group, a strategy consultancy specializing in supply chains. More information on Vivek is available on and more information on Global Supply Chain Group is available 

Vivek is the Managing Director of Global Supply Chain Group, a boutique strategy consulting firm specialising in Supply Chain Strategies, and headquartered in Sydney, Australia . He has over 24 years of experience in strategic transformations and operational excellence within global supply chains. Prior to co-founding Global Supply Chain Group in January 2000, Vivek was a management consultant with top-tier strategy consulting firm Booz Allen & Hamilton.

Vivek provides strategic operations and supply chain advice to boards and senior management of global corporations, private equity groups and other stakeholders in a range of industries including FMCG, food, shipping, logistics, manufacturing, chemicals, mining, agribusiness, construction materials, explosives, airlines and electricity utilities.

Vivek has served world-wide corporations in nearly 500 small and large projects on all continents with a variety of clients in many different industries. Most of projects have involved diagnostic, conceptualisation and transformation of supply chains – releasing significant amount of value for the business. His project work in supply chain management has added cumulative value in excess of $500M incorporating projects in major supply chain infrastructure investment decisions, profitable growth driven by global supply chain realignment, supply chain systems, negotiations and all other aspects of global supply chains.

Vivek has written a number of path breaking articles and commentaries that are published in several respected journals and magazines. Vivek has spoken at several supply chain conference, forums and workshops in various parts of the world. He has also conducted several strategic workshops on various aspects of supply chain management. He received his MBA with Distinction from the Australian Graduate School of Management in 1996 and prior to these studies spent 11 years in the Merchant Navy, rising from a Cadet to Master Mariner.

More information on Vivek is available on  and more information on Global Supply Chain Group is available on

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Excessive division of labor, if left unchecked, can be a major source of organizational stagnation. It is an all too familiar problem that creates bureaucratic structures with a deeply entrenched silos mentality. Such an environment limits cross-functional collaboration and creative innovation, thus hindering the progress within the organization. Rather than allowing departments to work together in harmony, excessive division of labor results in inflexible and inefficient communication channels that slow down the decision-making process and impede overall growth. To avoid this pitfall, organizations must focus on breaking down internal barriers and fostering open dialogue between stakeholders from multiple departments.

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Excessive division of labor can create bureaucracies with deeply entrenched silos mentality. This is a particularly concerning issue in today’s corporate world as it hinders collaboration, creativity, and innovation, which are essential for any organization to remain competitive. It also increases the risk of errors being missed due to a lack of end-to-end oversight and accountability. To prevent the formation of such siloed cultures, organizations should focus on building relationships between departments and teams, based on trust and openness. By bridging the divide between departments, individuals will gain a better understanding of their colleagues’ work and have a greater appreciation for its value across the entire organization. This will help ensure that everyone is working together towards a common goal with mutual respect for one another’s content expertise. Furthermore, companies should strive to encourage creativity by breaking down traditional hierarchies both within individual teams and interdepartmentally.

The excessive division of labor can create bureaucracies with a deeply entrenched silos mentality, which poses a huge problem to effective operations. To address this problem, organizations need to break down the silos and restructure their processes so they can collaborate across departments to look for more efficient solutions. This requires an enterprise-wide shift from the traditional structure in which tasks are divided among teams toward embracing cross-functional collaboration. For example, product managers could work directly with marketing and customer service teams on product launches; operations staff could be involved in developing strategies for customer service; sales reps could attend meetings with engineering or logistics teams. This type of collaboration helps increase visibility into different departments’ activities and promotes a shared understanding of goals amongst team members.


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The excessive division of labor can create bureaucracies with deeply entrenched silos mentality in any organization. For example, a common scenario is when an organization has been divided into several different departments, and the employees are restricted to interacting only within their department. This can cause a silo mentality wherein the team members view themselves as part of their department and not as part of the larger organization as a whole. As such, they lack collaboration across departments and fail to share resources or ideas which ultimately hinders creativity and progress.


Moreover, this type of bureaucracy can be self-perpetuating due to its hierarchical structure where new members often find it difficult to contribute outside of their area, thus deepening the gap between teams even further.


Excessive division of labor can create bureaucracies with deeply entrenched silos mentality. This form of organizational structure can be incredibly damaging to both internal and external stakeholders, resulting in a lack of innovation and poor customer service. To avoid this issue, organizations must take a proactive approach in ensuring that all divisions are working together towards the same collective goals. This could involve breaking down existing silos and encouraging more collaboration across departments as well as identifying new opportunities for inter-departmental communication. Ultimately, organizations need to recognize the importance of an integrated corporate culture so that their teams can work efficiently, effectively, and harmoniously toward achieving common objectives.



The global supply chain of products is an immense and complex system. It involves the movement of goods from the point of origin to the point of consumption, with intermediate steps that involve resources, materials and services to transport them. A supply chain encompasses activities such as purchasing, production, distribution and marketing in order to satisfy customer demands. Companies rely on a well-managed supply chain to meet their business goals by providing quality products and services at competitive prices.

Efficiently managing a global supply chain requires considerable effort, particularly when dealing with multiple suppliers located around the world. Complex logistics tracking systems are needed to monitor product movements from one place to another. Technologies such as artificial intelligence (AI) can help companies keep track of shipments across different locations for greater visibility into their processes.

what did Our Reader say?

(549 rating) 1676,People
global supply chain group

Chief Operating Officer Graphite Energy

I have experience with many of the well-known top-tier strategy firms but chose Global Supply Chain to support me on my supply chain projects. They always meet and exceed my expectations due to the quality of the work, the ability to work collaboratively with internal teams, and the flexibility to adjust the project approach when required.

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CEO - Large Global transnational corporation From: FOREWORD - OUTSOURCING 3.0

When I engaged Vivek’s services for supply chain transformation in one of the companies I was heading, we expected the careful and methodical approach that he was famous for... I was pleased to note that the original target set for 3 years was surpassed by almost 70% in just 18 months.

global supply chain group

Vice-President Supply Chain Asia Pacific

I have used their services for several business transformations and workshops in many companies. Each time an outstanding workshop and project result was delivered ensuring the success of the business transformation project. Savings surpassed $25 Million per annum in one case. Very powerful ideas, were implemented very diligently.

Global Supply Chain Group - Jean Briac Le Dean

Jean-Briac Le Dean
Co-Founder & Agen

Vivek is a very collaborative and open leader who leads teams by example. Whether internal teams, or clients teams, all are impressed by his intensity, energy level and drive to make things a little better.

Global Supply Chain Group - Lorna Calder Johnson

Lorna Calder Johnson
Omni-Channel Product Marketing
P & L Executive

Vivek's transformation expertise is apparent from his results and dedication to operations and supply chains. His strategic expertise, knowledge and network make him a standout even among an excellent team.

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