The evolution of supply chain management
SCM has a long history. The definition of supply chain management dates back to ancient times. And although the strategies for managing the supply chain have changed significantly, the fundamentals of the supply chain remain the same.
History of supply chain management
Supply chain management can be traced all the way back to antiquity. However, at that time there was only a manageable demand and production capabilities were limited. This changed during the industrialization. Since this era, supply chain management has become increasingly important for companies. After all, goods and services should be delivered to customers as efficiently as possible.
With the introduction of computer-based software solutions, the complexity of logistics and supply chain management increased rapidly. But despite the more complex structure, the supply chain still represents a largely linear process.
SCM in modern industries
Today, the supply chain management system is based on modern technological approaches and is commonly referred to as industry 4.0. In particular, supply chain management tools focus on sustainable methods, machine learning and automation.
How well operations and supply chain management work depends on various factors. For example, it is much easier to build a stable supply chain using augmented reality in the retail industry. This is because smart factories or smart warehouses automate and optimize large parts of their environment. This means not only that reducing warehouse costs is possible, but that ordering and delivery processes are more punctual and reliable. In this case, punctuality and reliability help to ensure that supply chain management can continue without interruption.