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Evolution of SCM

The document summarizes the evolution of supply chain management from the 1950s to present. It describes how activities transitioned from fragmentation to integration over time. Key developments included the transportation era of the 1950s, physical distribution era of the 1960s, adoption of MRP and JIT in the 1980s-1990s, and current focus on digitalization, sustainability, and collaboration across traditional boundaries. The future of supply chain management is expected to involve increased use of third-party logistics, transportation and logistics as a key focus, adoption of new technologies like RFID and analytics, and lean and agile supply chain approaches.

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Harsh Thakur
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241 views10 pages

Evolution of SCM

The document summarizes the evolution of supply chain management from the 1950s to present. It describes how activities transitioned from fragmentation to integration over time. Key developments included the transportation era of the 1950s, physical distribution era of the 1960s, adoption of MRP and JIT in the 1980s-1990s, and current focus on digitalization, sustainability, and collaboration across traditional boundaries. The future of supply chain management is expected to involve increased use of third-party logistics, transportation and logistics as a key focus, adoption of new technologies like RFID and analytics, and lean and agile supply chain approaches.

Uploaded by

Harsh Thakur
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Evolution of Supply Chain Management

BBA IVth Semester (BBA-401)


Veeresh Tripathi, Assistant Professor, SMS - Varanasi
Evolution: Historical Perspective

❖The 1950s’ transportation era


❖The 1960s’ physical distribution era
❖The 1970s’ physical supply and physical distribution
❖The 1980s’ transportation deregulation and physical distribution
❖The 1990s’ business logistics
Evolution of Supply Chain Management
Activity fragmentation to 1960 Activity Integration 1960 to 2000 2000+

Demand forecasting

Purchasing

Requirements planning
Purchasing/
Production planning Materials
Management
Manufacturing inventory

Warehousing
Logistics
Material handling

Packaging

Finished goods inventory Supply Chain


Physical Supply Chain
Management
Distribution Management
Distribution planning

Order processing

Transportation

Customer service

Strategic planning

Information services

Marketing/sales

Finance
Evolution of Supply Chain Management
Evolution of Supply Chain Management
1950s & early 1960s
Manufacturers around the world focused on mass production techniques as their principal cost
reduction and productivity improvement strategies.
1960s-1970s
Introduction of new computer technology lead to development of Materials Requirements Planning
(MRP) and Manufacturing Resource Planning (MRPII) to coordinate inventory management and
improve internal communication.
1980s & 1990s
Intense global competition led U.S. manufacturers to adopt
Supply Chain Management along with
Just-In-Time (JIT),
Total Quality Management (TQM), and
Business Process Reengineering (BPR) practices
Con..

2000s & 2010s


❖Industrial buyers will rely more on third-party logistics service providers (3PLs) & fourth-party
logistics service providers (4PLs) to improve purchasing and supply management.

❖Wholesalers/retailers will focus on transportation and logistics more & refer to these as quick
response, service response logistics, and integrated logistics.

❖New manufacturing technology, New supplier relationships, Focused factories, Global sourcing,
Postponement, Co-makership, Co-location: RFID tagging & Factory gate pricing (FGP).

❖Emergence of the concepts of Lean & Agile supply chains, Green Supply Chains or
environmental issues.
Con..

2010s and Beyond


❖environmental concerns further resulted in the development of many green initiatives in
logistics.
❖the important role of the supply chain was reflected in new approaches to humanitarian logistics
❖the recognition of the difference between lean and agile supply chains brought about revised
structures to relevant businesses
❖the concept of the networked economy was also embraced, acknowledging that the success of a
company is intrinsically linked to others so that enterprises need to cooperate and collaborate
across their traditional boundaries
❖significant technology developments began to impact on logistics and supply chain activities
❖Supply Chain Digitalization - e-commerce, e-fulfilment, AI, Big Data analytics
Recommended Texts:
❖ Chopra, Sunil, Meindl, Peter and Kalra, D. V.; .(2022) Supply Chain Management: Strategy,
Planning and Operation; Pearson Education
❖ Rushton, Alan., Croucher, Phil. & Baker, Peter.(2022) The Handbook of Logistics and
Distribution Management, Kogan Page,
❖ Mahadevan, B.; (2018), Operations Management Theory & Practice, Pearson.
❖ Richards, Gwynne. (2014) Warehouse Management, Kogan Page.
❖ Sople, Vinod V. (2012); Logistics Management, Pearson.
❖ Vijayaraghavan , T. A. S.., (2021), Supply Chain Analytics:, Wiley
❖ Gopalakrishnan, P. & Haleem., Abid; (2015) Handbook of Materials Management, PHI Learning.
❖ Case studies (Indian & International)
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This content is exclusively meant for academic purposes and for enhancing
classroom teaching and learning. Any other use for economic / commercial
purpose is strictly prohibited. The users of the content shall not distribute,
disseminate or share it with any one else and its use is restricted to advancement
of individual knowledge. The information provided in this e-content is authentic
and best as per knowledge.
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