History of Logistics and Supply Chain Management Revealed

What is the history of Logistics and Supply Chain Management? In this article, we will show you the true meaning of these terms that you've never heard before.

1. Current State of Logistics
According to the article by Lummas and team in 2001, the word "Logistics" in English appeared in the article as early as in 1898. Lots and lots of articles point to the fact that it is from the French word "Logistique" which first appeared in the book "The Art of War" in 1838 by Baron Henri de Jomini who was the general in the French army during Napoleon's time.

The article by Frankel and team in 2008 indicated that "supply chain" and "supply chain management" first recognized in the 1980s. The article by Stock in 2009 said more specific that most researchers believed the term "supply chain management" was introduced by Keith Oliver of Booz Allan Hamilton in 1982 on the Financial Times.

2. True Origin of Logistics
The story began in January 1810 on the "Scots Magazine, and Edinburgh Literary Miscellany for January 1810".

Scots Magazine


On page 286, it said that Dr. William Muller, who was the first public instructor of military science at the University of Gottingen, planned to launch the book named "The Elements of the Art of War".  It was here that the word "Logistics" in the English language appeared for the first time.

art of war


Later, Muller changed his mind and called the book "The Elements of the Science of War" in 1811.

science of war


This book covered the tactics for Infantry (foot soldiers), Cavalry (soldiers on horseback), Artillery (soldiers with heavy weapons) and Pontonier (soldiers in charge of construction of bridges). Muller explained in a very comprehensive manner about how "movement" of each type of soldiers should be done, which included marching, transportation, wheeling, advancing, formation, transport of heavy guns, how to cross the river etc.

3. True Origin of Supply Chain
In 1905, The newspaper "The Independent" published the article that contained the word "Supply Chain" for the first time,

the Independent Newspaper

Since the publisher of this article is not part of the Google Books Project, only this screenshot is available for viewing. Anyway, the term "fortified pass" is a military term and this sentence was more likely to describe a war situation.

In early October 1912, Glasgow Herald (now Herald Scotland) dispatched a special correspondent to cover the news about "Balkan War". On 14 October 1912, the news mentioned the word with a better clarity as below,

Glasgow Herald


Basically, the reporter explained the conditions of military deployment. As you may notice, 100-year-old language is a bit difficult to understand, the order of verb and noun is different from modern English. Then, I've created the conceptual model of the news as below,
supply chain model

The basic idea is that troops traveled to a battlefield and en route there were many "supply chain" (resupply points). Here at resupply points, inventory was stored for up to 8 days. The phrase "the staff (Bulgarian) relies on the distance carrying them (supplies) from one centre... to another" is a bit tricky. According to the Free Dictionary, "distance" can also mean "the extent of progress". This implies that the army relied on "replenishment progress (process).

4. Relationship Between Logistics and Supply Chain
The difference between 2 terms has been very confusing for most people. The article by Larson and team in 2007 indicated that, based on a literature review, there are 4 types of interaction as below,

definition

- Traditionalist: practitioners with the traditional view sees SCM as part of logistics.

- Re-labeling: the job title "logistics analyst" will become "supply chain analyst" if companies feel SCM is the new term for logistics.

- Unionist:  many researchers believe that SCM is an inter-organizational process/collaboration, while logistics is within the corporate function.

- Intersectionist: many practitioners feel both terms are 2 different things with some overlapping scope.

5. Conclusion
Based on historical perspective, a conclusion can be drawn that,

- Both "logistics" and "supply chain" share the same root in military operations (not one from the military and the other from industrial or manufacturing context).

- Logistics implies the movement of troops and Supply Chain implies the resupply points in military operations.

- Then, both terms can't live without one another. Imagine bread without butter, nuts without bolts or Tom without Jerry, what it's going to be?

- Supply Chain doesn't have to be the only inter-organizational issue. It can be any point within the same organization.

Taking these facts into account, this article has provided a clear and concise definition as below,

Logistics is about Movement or Flow or Arc(s) and Supply Chain is about Resupply Points or Points or Nodes

I would like to take this opportunity to express my appreciation for Google Books and Google News who spent its resources to digitize valuable books/news archives. Also, it won't be possible without the vision of the Harvard University Library, Raymond A. Whitwer Tilden Public Library in Nebraska and Library of Pennsylvania State University who preserve the books (Scots Magazine, and Edinburgh Literary Miscellany for January 1810, The Elements of the Science of War and The Independent Volume 58).

References

- Lummus, R. R., Krumwiede, D. W., & Vokurka, R. J. (2001). The relationship of logistics to supply chain management: developing a common industry definition. Industrial Management & Data Systems, 101(8), 426-432.

- Jomini, A. H. (1838). Summary of the Art of War. JD Hittle övers.). I: Roots of Strategy Book, 2.

- Frankel, R., Bolumole, Y. A., Eltantawy, R. A., Paulraj, A., & Gundlach, G. T. (2008). The domain and scope of SCM's foundational disciplines—insights and issues to advance research. Journal of Business Logistics, 29(1), 1-30.

- Stock, J. R. (2009). A research view of supply chain management: Developments and topics for exploration. Orion, 25(2).

- Larson, P. D., Poist, R. F., & Halldórsson, Á. (2007). Perspectives on logistics vs. SCM: a survey of SCM professionals. Journal of Business Logistics, 28(1), 1-24.

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About the Editor

Ben Benjabutr is the editor of SupplyChainOpz. He holds an M.Sc. in Logistics Management with 10+ years of experience in various functions in supply chain magement. In his free time, he enjoys reading business and management books. You can learn more about him here or connect with him via TwitterQuora and Google+ or drop him a line via e-mail.