The term "supply chain management" has its origins in the field of logistics, which has been around since the early 20th century. The idea of managing the flow of goods and materials from suppliers to customers has been a critical function of businesses throughout history, but it was only in the mid-1980s that the term "supply chain management" began to gain popularity.
One of the earliest uses of the term can be traced back to a report published by the Council of Logistics Management (now known as the Council of Supply Chain Management Professionals) in 1985, which defined supply chain management as "the process of planning, implementing, and controlling the operations of the supply chain with the intention of satisfying customer requirements as efficiently as possible."
The rise of global trade and the increasing complexity of supply chains in the late 20th century led to a growing recognition of the importance of supply chain management. As companies began to outsource more of their manufacturing and logistics operations to third-party suppliers and partners, the need for effective supply chain management became even more critical.
Today, supply chain management is a key strategic function for businesses across a wide range of industries. From sourcing and procurement to inventory management and transportation, supply chain management encompasses a broad range of activities that are critical to the success of modern businesses. The term "supply chain management" continues to evolve as new technologies and practices are developed, but its origins can be traced back to the early days of logistics and the growing recognition of the importance of managing the flow of goods and materials in an efficient and effective manner.
An example of supply chain management in day-to-day life is the process of ordering food online from a restaurant. The supply chain begins with the restaurant's suppliers who provide the raw materials for the dishes. Once the food is prepared, it is packed and sent to the restaurant's warehouse for inventory management. When a customer places an order, the food is then transported to the restaurant and finally delivered to the customer's doorstep. Supply chain management is crucial in ensuring that the right amount of ingredients are available at the right time, and that the food is delivered to the customer in a timely and efficient manner. Effective supply chain management in this scenario involves coordinating the activities of multiple suppliers, inventory management, transportation, and delivery, all with the goal of providing a positive customer experience.
Supply chain plays a critical role in the global economy by enabling the movement of goods and services across borders. It is the backbone of international trade, connecting businesses with suppliers and customers around the world. Effective supply chain management ensures that goods are delivered efficiently, cost-effectively, and on time, which is crucial for businesses to remain competitive in the global marketplace. The global economy relies
heavily on supply chain management for the flow of goods and services, from sourcing raw materials to delivering finished products to customers. Supply chain management also plays a vital role in reducing costs, improving quality, and increasing efficiency, all of which contribute to the growth and sustainability of the global economy.
Top 50 countries that have greater opportunities for supply chain professionals
- United States
- China
- Japan
- Germany
- United Kingdom
- Canada
- France
- Australia
- Netherlands
- Switzerland
- Singapore
- South Korea
- Brazil
- India
- Italy
- Sweden
- Spain
- Belgium
- Mexico
- Turkey
- United Arab Emirates
- Malaysia
- Denmark
- Norway
- Poland
- Saudi Arabia
- Thailand
- Indonesia
- South Africa
- Taiwan
- Russia
- Austria
- Czech Republic
- Hong Kong
- Ireland
- Israel
- Finland
- Portugal
- Greece
- Hungary
- Romania
- Philippines
- Argentina
- Vietnam
- Egypt
- Colombia
- Peru
- Ukraine
- Chile
- Morocco
Supply Chain & Procurement Programs from Fhyzics:
Certified Supply Chain Professional (CSCP)
Certified in Planning and Inventory Management (CPIM)
Certified in Logistics, Transportation and Distribution (CLTD)
Certified Inventory Optimization Professional (CIOP)
Certified Professional in Sourcing Excellence (CPSE)
Certificate in Supply and Operations, CIPS Level-2
Advanced Certificate in Procurement and Supply Operations, CIPS Level-3
Diploma in Procurement and Supply, CIPS Level-4
Advanced Diploma in Procurement and Supply, CIPS Level-5
Professional Diploma in Procurement and Supply, CIPS Level-6
