3 Phases in The Evolution of SCM

Three phases in the evolution of SCM

Pre 1970-era
-          Supply chain was not considered as a competitive unit.
-          Scientific methods like EOQ and SPC were applied.
-          Companies attempted at Vertical integration – themselves.
1970-1980 era
-          Holding inventory becomes key due to oil stock
-          TQM and JIT practice become popular in japan
-          Distribution is not yet the focus area
-          MRP systems gain popularity in US and Europe
Post 1980 era
-          Inventory drops dry up as inflation reigns in
-          US manufacturers embrace JIT philosophy, JIT pushes inventory upstream
-          Lower set up times, lower batch quantities result in reduction in lead times and drastic improvement in customer responsiveness.
-          Suppliers and customers considered as part of the organization network
-          MRP systems give way to MRP II systems, ERP and then to advanced supply chain systems involving optimizations.

Source: BSCM APICS certification course, study guide by IMRMI (india).