---
id: how-do-we-define-authority-for-supply-chain-decisions
title: "How do we define authority for supply chain decisions?"
category: faq
subtopic: defining-authority
page_type: faq
source_url: "https://neosbyargonandco.com/supply-chain-decision-ownership-governance"
tags: ["authority", "governance", "delegation"]
questions:
  - "How should authority be assigned?"
  - "What's the difference between accountability and authority?"
  - "How do we prevent accountability without authority?"
related: [decision-ownership, escalation-criteria]
---

Define authority clearly at the outset by identifying who is accountable for outcomes and who can approve changes. This prevents situations where someone is held responsible but cannot authorize the resources needed to deliver results.

Authority often differs by decision type and organizational structure. Routine decisions can sit within delegated limits, while changes with wider consequences may require escalation. The key is giving people enough authority to act while ensuring significant trade-offs reach the appropriate forum.

For example, planning might adjust inventory settings within agreed service and working capital limits, but a proposal changing a major customer's fulfillment promise needs commercial involvement and a different approval route. Clear authority structures let teams act decisively without bottlenecks. neos by Argon & Co helps organizations design governance that balances empowerment with oversight. Contact us to strengthen your decision-making framework.