Defining supply chain management: a historical perspective and practical guidelines

TLDR

Interest in supply chain management has risen since the 1980s as firms recognize the benefits of collaboration, yet they cannot compete effectively in isolation, prompting numerous definitions that clarify the concept without replacing supplier partnerships or logistics. The paper aims to define supply chain management, trace its historical evolution, and highlight the competitive necessity of aligning supply chain strategy with overall business strategy while offering practical guidelines. The authors define supply chain management and trace its historical evolution. The study finds that aligning supply chain strategy with overall business strategy is competitively important and provides practical guidelines for successful implementation.

Abstract

Interest in supply chain management has steadily increased since the 1980s when firms saw the benefits of collaborative relationships within and beyond their own organization. Firms are finding that they can no longer compete effectively in isolation of their suppliers or other entities in the supply chain. A number of definitions of supply chain management have been proposed in the literature and in practice. This paper defines the concept of supply chain management and discusses its historical evolution. The term does not replace supplier partnerships, nor is it a description of the logistics function. The competitive importance of linking a firm’s supply chain strategy to its overall business strategy and some practical guidelines are offered for successful supply chain management.