An increase in integration and information sharing can be used to explain how supply chain management (SCM) has changed over the past 50 years. The departmentalized or functional SCM was developed during the first phase, which spanned from World War II to the late 1980s, with sections or departments operating in isolation and managers making decisions for each one. The notion of integrated SCM was developed during the second phase, which spanned the late 1980s to the late 1990s, using tools including advanced planning and scheduling systems (APS), enterprise resource planning (ERP), and business process reengineering (BPR). The third phase, which involves transforming supply chains into value networks with integrated and centralized planning, an emphasis on enhanced information availability and sharing, and a goal of higher customer service levels and reduced supply chain.
Four key elements as essential for achieving operational success
- Transparency throughout the whole supply chain
- Flexible sourcing and supply alternatives
- Response to alterations in client demand and lead times for products
- Rapid launches of new products based on contemporary designs and industry trends.
