Thursday, January 16, 2014

Historical overvew of Supply Chain Management

The evolution of supply chain management has had six major movements starting with its first appearance in 1982 when Keith Oliver coined the term during an interview with Financial Times.  Although the term look almost a decade to become seen in various books and articles a major tipping point for supply chain management came much earlier with the invention of the assembly line.  This manufacturing process allowed a company to produce products in much larger quantities than previously believed possible. The benefits were apparent and supply chain management, although not coined at the time, became a source competitive advantage and organizational growth. 

In the 1960’s electronic data systems accompanied with enterprise resource planning lead to better integration capabilities.  The various links in a organizations supply chain was never looked at as a whole to such an extend.  Communication and collaboration became the norm and a fragmented system started to consolidate by the 1980’s. 

By the 1990’s functional integration and the development of logistics led to an even more prevalent study of supply chain management.  With the integration of information technology, marketing, and strategic planning, Supply Chain management become an important field of study because of the cost benefits associated numerous examples of operational excellence.  by the 2000’s supply chain management could capture significant value for many large corporations. 

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