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My Introspective

by Laurus Nobilis
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Supply Chain

Supply Chain Management:

Traditional and Modern View to Supply Chain (E)

Supply Chain Management


What was the evolution history of supply chain management? What are the main components of supply chain? How big is the importance of supply chain integration?


Posted: Jul 2011









The emphasis on integrated supply chain management emerged at the end of '90s. The integrated supply chain model is different from the previous concepts. The traditional view of the supply chain considers the individual companies and elements within a firm as separate units that represent "functional" entities. This was an organization that resembles to the "silo" concept.

Traditional View of Supply Chain


Supply chain management plays a very important role within the company. The supply chain generate most of the costs of the company, due to the width and complexity of the function . Any inefficiency can create tremendous negative impact to the company. On the other hand, good supply chain management can bring huge benefits and competitive advantage to the company.



Modern concept of supply chain is more progressive than traditional.

Under the old model, the different parts of supply chain often oppose each other because of conflicting objectives.

This situation caused that supply chain to be inefficient and unresponsive to customer needs.

Therefore, the companies have improved the level of integration across whole the supply chain. The following graph is the representation of a new organizational layout.


Modern View of Supply Chain


The new layout of relationship unlocked the full power of supply chain management. The modern concept of supply chain became a tool for creation of value, not just money saving robot.

These companies are now using extensively advanced information technology as well, in order to redefine their supply chain structures, supply the new customer segments, and to expand the portfolio of services for customers.



Continue Reading:

Overview of Supply Chain Components
Historical Development of Supply Chain
Traditional and Modern View to Supply Chain
Supply Chain Activities
Order Processing
Demand and Supply Planning
Inventory Management
Customer Care
Integrated Supply Chain
Financial Resources
Integration vs. Non-Integration

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