Evolution Of Supply Chain Management

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The evolution or development of SCM is a slow process. Over the last century, there have been three major revolutions in the field of SCM and we can examine each of these revolutions related to the broader evolution in the economic and technological environment. Consider the following statement which is created by person who is the chief executive of a one automobile firm: “Always our aim is to arrange the material and machinery to simplify the operations are there is no need for orders. Our finished inventory and our raw material inventory are in movement. Our production cycle is about eighty-one hours from the mine to the freight car.” It is clear from this statement that this firm had a well integrated supply chain in place that allowed…show more content…
 The first stage is described as an era of internal logistics departmentalism.  The second stage describes that logistics began to shift from decentralization to centralization with new attitudes related to concepts of optimization of cost and customer services.  In the stage three there is an expansion of logistics concern related to warehousing within organization and transportation to develop new concepts related to the linking of internal operations with the functions of channel trading partners.  In fourth stage there is a full concept of supply chain management (SCM).  Today, with the Internet technology, we can describe SCM related to internet as a 5th stage i.e.…show more content…
the demand for goods and services are extended far beyond the location where the products were made. It is always the goal of the logistics functions of the company to fill this gap in the marketing and distribution and procurement systems by facilitating the efficient and fastest movement of goods and services from the point of manufacture to the point of need. The critical dynamics of this process consist of time to delivery, cost, and ease of exchange. Companies that are successfully able to leverage the supply channels with their customers and suppliers are able to make profit and can focus more on their functions which are productive. When from this perspective it is viewed, the supply chain system concept can be described as a network of interdependent partners, who not only supply the necessary products and services to the system of channel, but who also stimulate demand and provides the sync of competencies and resources of the entire chain network to produce capabilities enabling a level of operational excellence and marketplace leadership which is impossible for each business who is operating by its
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