In the early days, the supply chain management was referred to the functions of logistics, transportation, purchasing and supplies. However, the evolution of the supply chain management has moved to focus on integration, visibility, cycle time reduction and streamlined channels. The new integration has a variety of activities that include:
• Integrated Purchasing Strategy
• Supplier Integration
• Supply Base Management
• Supply Chain Management
Logistics activities exist since the early 1900s. These activities were first associated with the military as a branch of war that pertains to the movement and the supply for armies. Military forces always used to make use of logistics models to ensure the availability of the required material at the right place and on right time. Logistics is being used by the military even today.
After 1950, supply chain management got a boost with the production and manufacturing sector getting highest attention. The inventory became the responsibility of the marketing, accounting and production areas. Order processing was part of accounting and sales. Supply chain management became one of the most powerful engines of business transformation. It is the one area where operational efficiency can be gained. It reduces organizations costs and enhances customer service. The evolution led to an Internet-based application for Supply Chain Management.
Article Dated: May 19, 2006