Language
Country/Area
No result found
The mysterious origins of supply chain management: How 1982 changed the business world.
In today's business environment, supply chain management (SCM) is widely recognized as the key to business success. The establishment of this concept is not accidental, but is the result of gradual evolution in the long course of history. In 1982, management consultant Keith Oliver first introduced the term "supply chain management" into the public domain in an interview in the Financial Times, changing the business world's understanding of corporate operations.
Supply chain management is the process of designing, planning, executing, controlling and monitoring raw material procurement, operations management, logistics and market channels, with the aim of creating net value, establishing competitive infrastructure and coordinating supply and demand.
The concept of supply chain existed long before 1982. The traditional definition of a supply chain includes all activities from the flow of raw materials to the final consumer and the associated information flows. It was in this year that supply chain management began to be formally recognized as an independent academic field and quickly attracted widespread attention from the business community.
Composition and function of supply chain
Supply chain management is a cross-functional approach that encompasses the many functions involved in managing the inflow of raw materials, internal processing, and delivery of finished products to the end consumer. As companies focus on their core competitiveness, more and more companies choose to outsource raw material procurement and distribution channels to other professional companies.
The core of supply chain management is to improve trust and collaboration among supply chain partners, thereby improving inventory visibility and inventory flow speed.
While this outsourcing strategy increases the number of organizations involved in meeting customer needs, it also reduces management control over day-to-day logistics operations. Effective supply chain management relies on good partnerships and transparency to improve overall supply chain efficiency.
Importance of Supply Chain ManagementIn the global market, companies are gradually realizing that relying on an efficient supply chain is a prerequisite for competition. Peter Drucker once said that as corporate boundaries blur, "business relationships based on ownership" are gradually being replaced by "partnerships," thereby driving the optimization of business processes.
The effectiveness of supply chain management was particularly evident during the challenges of the 2019-2020 COVID-19 pandemic, as countries with efficient supply chain management were able to quickly obtain the medical supplies they needed.
Many companies that have shown strong resilience during the epidemic rely on their efficient supply chain management systems, which enable them to quickly adjust and adapt to emergencies.
Supply Chain Resilience and Future Direction
Modern supply chain management increasingly values the concept of resilience, which is the ability of a supply chain to continue to operate, adapt or transform in the face of change. As the economic environment changes and globalization accelerates, companies must adapt to these changes or face the risk of being eliminated from the market.
Supply chain resilience refers not only to financial stability, but also to the ability to face external shocks and get back on its feet after these shocks.
In addition, companies are beginning to explore sustainable supply chain solutions to reduce environmental impact and enhance social responsibility. In the long run, this is not only a necessary measure to meet the requirements of laws and regulations, but also a necessary measure to meet the demands of consumers. With the advancement of technology, the supply chain will become increasingly digital and networked.
ConclusionThe concept and practice of supply chain management has undergone tremendous changes since 1982, from the initial cost control to today's global collaboration and sustainable development. As the challenges faced by enterprises become increasingly complex, the importance of supply chain management becomes more prominent. How will the future supply chain adapt to the ever-changing environment and continue to enhance its resilience and efficiency to meet the evolving market needs? This is worth our consideration.
