The Evolution of SCM Theory
This section outlines the origin and ascent of the SC concept and SCM theory.
From “Logistics” to “Supply Chain”
The Council of Supply Chain Management Professionals (2010, p. 114) defines logistics as “the process of planning, implementing, and controlling the efficient, effective flow and storage of goods, services, and related information from the point of origin to the point of consumption for the purpose of conforming to customer requirements.” Rushton et al (2010, p.4) contrast logistics and SC in unequivocal terms: “supply chain = suppliers + logistics + customers” and “logistics = materials management + distribution”.
Following the entrance of “supply chain”, logistics refers now to the physical activities involved in the conveyance of goods through the SC. Both SC and SCM signify rejection of forecast-driven push systems and focus on efficiencies, replacing these with a philosophy of integrated, responsive systems that strive for provision of customisation and effectiveness (i.e customer satisfaction).
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