History of Logistics and Supply Chain Management

Logistics and Supply Chain Management is a relatively new discipline. It's the crossroads of diverse subjects, covering various branches of business, management and engineering. Understanding of our own roots helps create the appropriate mindset, ending the rhetoric and bringing supply chain integration to reality.

This infographic presents major theoretical milestones and some brief description about related concepts are explained down below,




Related Concepts
- Mass Production: a method of production of standardized products at large scale

- Postponement: producing work-in-process instead of finish goods so products can be customized quickly when customer places the order

-  Forrester Effect: the problems that downstream raw material manufacturers can't catch up with the demand at upstream retailing level due to the lack of demand information.

- Material Requirement Planning: a system used to determine the demand of finish goods and required raw materials.

- Travelling Salesman Problem: the way to use mathematical model to find the shortest travelling route from origin to destination.

- Reverse Logistics: a process of returning goods from customer back to seller

- Theory of Constraints: the assumption that company works as a whole. To improve the operations, it's better to find bottleneck instead of improving everything at the same time.

- Cost Service Trade-off: you gain something at the cost of something else.

- Third Party Logistics: the way to outsource logistics operations to outside companies

- Lean Manufacturing: the concept originated by Toyota to reduce non value added activities

- Reengineering: the way to create radical change to business process

- Efficient Consumer Response: the kind of initiative in retail industry to improve product availability to consumer

- Bullwhip Effect: the problems that supplier doesn't know the demand of customer so they have to keep excessive stock level

- Continuous Replenishment: the initiative that supplier maintains and replenish stock for retailer

Remark: this infographic is updated on 30 May 2013 to reflect some important changes. While most researchers believe that the word logistics was derived from the word "logistique" in French and the first book contains the word "logistique" is "The Art of War" by Baron Henri de Jomini in 1838, the recent discovery indicates otherwise. More information, evidences and theoretical basis can be found in this article. Please don't hesitate to read this article because it's really worth your time.