Evolution of Supply Chain Management
The field of supply chain management has always been a complex orchestration of various components, all working together to efficiently deliver products to the end customer. Historically, the primary objective of supply chain management was aligning the supply of goods and services with consumer demand. The approach was straightforward: procure raw materials, guide them through value-added stages, and ultimately deliver the finished products to customers.
Those days are long gone, as supply chains have evolved beyond national borders in recent decades, forming an intricate global web. Thanks to decreasing trade barriers and increased global integration, supply chains have gained the ability to deliver a wide array of products to consumers across the globe.
However, recent times have exposed the fragility of these expansive supply chains. Events like the far-reaching impacts of the Covid-19 pandemic, geopolitical tensions, and conflicts such as the war in Ukraine and war in Gaza have profoundly shaken the very foundations of supply chains. Furthermore, the looming threat of climate change and other global societal challenges have added another layer of complexity, creating an unprecedented challenge for companies. We can all recall the bottlenecks, widespread shortages, and even the sight of unfinished vehicles parked due to semiconductor shortages.