Editing Supply chain management (section)

== Historical developments ==
Six major movements can be observed in the evolution of supply chain management studies: creation, integration, [[globalization]],<ref name=Movahedi2009>Movahedi B., Lavassani K., Kumar V. (2009) Transition to B2B e-Marketplace Enabled Supply Chain: Readiness Assessment and Success Factors, The International Journal of Technology, Knowledge and Society, Volume 5, Issue 3, pp.&nbsp;75–88</ref> specialization phases one and two, and SCM 2.0.

===Creation era===
The term "supply chain management" was first coined by [[Keith Oliver]] in 1982. However, the concept of a supply chain in management was of great importance long before, in the early 20th century, especially with the creation of the [[assembly line]]. The characteristics of this era of supply chain management include the need for large-scale changes, re-engineering, downsizing driven by [[cost reduction]] programs, and widespread attention to Japanese management practices. However, the term became widely adopted after the publication of the seminal book ''Introduction to Supply Chain Management'' in 1999 by Robert B. Handfield and Ernest L. Nichols, Jr.,<ref>{{cite book | author = Handfield, R., and Nichols, E. | date = 1999 | title = Introduction to Supply Chain Management | publisher = Prentice Hall | location = Upper Saddle River, NJ | isbn = 9780136216162}}</ref> which published over 25,000 copies and was translated into Japanese, Korean, Chinese, and Russian.<ref>{{cite web|url=http://www.poole.ncsu.edu/index-exp.php/directory/dossier/robert-handfield/|title=People - Poole College of Management - NC State University|website=www.poole.ncsu.edu|access-date=26 July 2017}}</ref>

===Integration era===
This era of supply chain management studies was highlighted with the development of [[electronic data interchange]] (EDI) systems in the 1960s and developed through the 1990s by the introduction of [[enterprise resource planning]] (ERP) systems. This era has continued to develop into the 21st century with the expansion of Internet-based collaborative systems. This era of supply chain evolution is characterized by both increasing value-added and reducing costs through integration.{{Citation needed|date=July 2022}}

A supply chain can be classified as a stage 1, 2, or 3 network. In stage 1–type supply chain, systems such as production, storage, distribution, and material control are not linked and are independent of each other. In a stage 2 supply chain, these are integrated under one plan, and enterprise resource planning (ERP) is enabled. A stage 3 supply chain is one that achieves [[vertical integration]] with upstream suppliers and downstream customers. An example of this kind of supply chain is [[Tesco]].{{Citation needed|date=July 2022}}

===Globalization era===
It is the third movement of supply chain management development, the globalization era, can be characterized by the attention given to global systems of supplier relationships and the expansion of supply chains beyond national boundaries and into other continents. Although the use of global sources in organizations' supply chains can be traced back several decades (e.g., in the oil industry), it was not until the late 1980s that a considerable number of organizations started to integrate global sources into their core business.{{citation needed|date=May 2019}} This era is characterized by the globalization of supply chain management in organizations with the goal of increasing their competitive advantage, adding value, and reducing costs through global sourcing.{{Citation needed|date=July 2022}}

===Specialization era (phase I): outsourced manufacturing and distribution===
In the 1990s, companies began to focus on "core competencies" and specialization. They abandoned vertical integration, sold off non-core operations, and outsourced those functions to other companies. This changed management requirements, as the supply chain extended beyond the company walls and management was distributed across specialized supply chain partnerships.{{Citation needed|date=July 2022}}

This transition also refocused the fundamental perspectives of each organization. [[Original equipment manufacturer]]s (OEMs) became brand owners that required visibility deep into their supply base. They had to control the entire supply chain from above, instead of from within. Contract manufacturers had to manage bills of material with different part-numbering schemes from multiple OEMs and support customer requests for work-in-process visibility and [[vendor-managed inventory]] (VMI).{{Citation needed|date=July 2022}}

The specialization model creates manufacturing and distribution networks composed of several individual supply chains specific to producers, suppliers, and customers that work together to design, manufacture, distribute, market, sell, and service a product. This set of partners may change according to a given market, region, or channel, resulting in a proliferation of trading partner environments, each with its own unique characteristics and demands.{{Citation needed|date=July 2022}}

===Specialization era (phase II): supply chain management as a service===
Specialization within the supply chain began in the 1980s with the inception of transportation brokerages, warehouse management (storage and inventory), and non-asset-based carriers, and has matured beyond transportation and logistics into aspects of supply planning, collaboration, execution, and performance management.

Market forces sometimes demand rapid changes from suppliers, logistics providers, locations, or customers in their role as components of supply chain networks. This variability has significant effects on supply chain infrastructure, from the foundation layers of establishing and managing electronic communication between trading partners to more complex requirements such as the configuration of processes and workflows that are essential to the management of the network itself.

Supply chain specialization enables companies to improve their overall competencies in the same way that outsourced manufacturing and distribution has done; it allows them to focus on their core competencies and assemble networks of specific, best-in-class partners to contribute to the overall value chain itself, thereby increasing overall performance and efficiency. The ability to quickly obtain and deploy this domain-specific supply chain expertise without developing and maintaining an entirely unique and complex competency in house is a leading reason why supply chain specialization is gaining popularity.

Outsourced technology hosting for supply chain solutions debuted in the late 1990s and has taken root primarily in transportation and collaboration categories. This has progressed from the application service provider (ASP) model from roughly 1998 through 2003 to the on-demand model from approximately 2003 through 2006, to the software as a service (SaaS) model currently in focus today.

===Supply chain management 2.0 (SCM 2.0)===
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The term SCM 2.0 has been coined to describe both changes within supply chains themselves as well as the evolution of processes, methods, and tools to manage them in a new era of globalization and specialization. One element of this is the growing popularity of [[supply chain collaboration]] platforms that connect multiple buyers and suppliers with financial institutions, enabling them to conduct automated supply chain finance transactions.<ref>{{cite web|url=http://www.cgi.com/sites/cgi.com/files/GTR_AcceleratingSupplyChainFinance_Starace_Quote_e.pdf|title=Trade Services and the Supply Chain|access-date=26 July 2017|archive-date=20 July 2013|archive-url=https://web.archive.org/web/20130720190504/http://www.cgi.com/sites/cgi.com/files/GTR_AcceleratingSupplyChainFinance_Starace_Quote_e.pdf|url-status=dead}}</ref>

[[Web 2.0]] is a trend in the use of the World Wide Web that is meant to increase creativity, information sharing, and collaboration among users. At its core, the common attribute of Web 2.0 is to help navigate the vast information available on the Web in order to find what is being bought. It is the notion of a usable pathway. SCM 2.0 replicates this notion in supply chain operations. It is the pathway to SCM results, a combination of processes, methodologies, tools, and delivery options to guide companies to their results quickly as the complexity and speed of the supply chain increase due to global competition; rapid price fluctuations; changing oil prices; short product life cycles; expanded specialization; near-, far-, and off-shoring; and talent scarcity. 

Increasing volatility has characterized supply chains since about 2000. Douglass in 2010 referred to an SCM management style known as "extreme supply chain management", which:{{quote|recognizes the need for collective, rather than sequential, risk management and facilitates collaboration on a new scale that is necessary for survival. It challenges companies to be "perpetually vigilant".<ref name=extreme>Hochfelder, B., [https://www.sdcexec.com/home/article/10326695/extreme-supply-chain-management Executive Memo: Supply chain volatility], ''Supply & Demand Chain Executive'', published 17 August 2011, accessed 10 March 2023</ref>}}