Supply Chain Management Logistics

Supply Chain Management LogisticsOver the past few decades, many changes have occurred in the field of supply chain management logistics. Logistics has changed its meaning while the world has been changed by technology, and the supply chain has become more and more global in nature. With software that can provide real-time metrics and detailed data about an organization's operations, industries must adapt to the new face of supply chain management. New possibilities have opened up with the advent of the technology revolution. The industry still has many opportunities to take advantage of new tools and research the evolving technologies and methods of communication.

Logistics began with inventory, materials handling, warehousing, and physical distribution via freight in the early- and mid-part of last century. Since then, supply chain management logistics boomed in the 80s and 90s with the emergence of the personal computer and global networking. By the end of the century, it was clear that logistics was expensive and complex, and vital to every industry that relied on physical product distribution.

In the 70s and 80s, the Materials Requirements Planning Systems of the 70s and 80s had evolved to meet the needs of supply chain management logistics. The supply chain soon expanded further with Enterprise Resource Planning systems, which improved organizations' ability to monitor and accurately track their supply chain operations. By the turn of the century, most large companies had installed ERPs, around the same time the supply chain had become a global phenomena. The imports from China into the United States had increased sixfold from 1995 to 1996.

The industry's conceptualization of supply chain management, logistics, and component terminology has evolved along with the industry. The Council of Supply Chain Management Professionals defined, in essence, the effective coordination of business functions with the supply chain as “supply chain management.” Logistics, in contrast, was the tactical planning and implementation of the flow between consumer and supplier of the given products.

The rapid evolution of the supply chain industry has had a hard time keeping pace with the rapidly changing technology revolution, which has been a major factor in fueling the supply chain and logistics industry growth. While the industry has made a great deal of progress with the use of technological tools, there are always areas that can be improve on in supply chain management logistics. The supply chain can benefit from further academic or private research into newer models of centralized communication.

According to Georgia Tech, planning for supply chain and logistics is still based around models from the era of the personal computer. The rise of global networking capabilities is paving the way for new industry tools and communication paradigms, and there is still plenty of room for growth in the future of supply chain management logistics. The supply chain will continue to grow with technology as the industry evolves to meet the needs of the global supply chain.

Posted by LeanCor Supply Chain Group

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LeanCor Supply Chain Group is a trusted supply chain partner that specializes in lean principles to deliver operational improvement. LeanCor’s three integrated divisions – LeanCor Training and Education, LeanCor Consulting, and LeanCor Logistics – help organizations eliminate waste, drive down costs, and build a culture of continuous improvement.

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