A long, long time ago....
I started my career in the late 1970s studying chemistry and working as an R&D type helping to bring FMCG Homecare products to the market. At that time, people working in R&D were largely silo based and did not really know how a carefully crafted innovation made the transition from bench top development, through pilot plant testing and eventually onto supermarket shelves.
Somebody must have been involved somewhere as SKUs did reach shelves but this was hardly a cohesive team with job descriptions let alone carefully aligned roles and responsibilities. Even then 'somebody' was always not part of the project team so with hindsight it was inevitable delays and mistakes would occur. 'Somebody' was to blame every time!
Green shoots of Supply Chain
Dedicated Supply Chain departments started to spring up in FMCG as formal organisations around ERP deployment. Initially, recruits were taken from other departments; commercial, manufacturing, sales and even R&D! Very few had any real understanding of extended Supply Chain requirements and they certainly did not have any formal qualifications or training. Qualifications and training are now widely available through many organisations such as CIPM and the Supply Chain Council.
Definition mission
We have come a long way since that time but I am still not sure who coined the term Supply Chain, do you know? With this in mind I have taken a few definitions from the internet and start with the individual word basics using an Oxford English Dictionary.
Supply noun 1. An amount of something that is available for use when needed. 2. The action of supplying something.
Chain noun 1. A row of metal rings fastened together. 2. A connected series of things e.g. a chain of events.
I think we would all agree that seems reasonable but what about a more technical definition from the Council of Supply Chain Management Professionals (CSCMP).
“Supply Chain Management encompasses the planning and management of all activities involved in sourcing and procurement, conversion, and all logistics management activities. Importantly, it also includes coordination and collaboration with channel partners, which can be suppliers, intermediaries, third-party service providers, and customers. In essence, supply chain management integrates supply and demand management within and across companies".
Wikipedia chips in with “A supply chain is a system of organizations, people, technology, activities, information and resources involved in moving a product or service from supplier and customer. Supply chain activities transform natural resources, row materials and components into a finished product that is delivered to the end customer. In sophisticated supply chain systems, used products may re-enter the supply chain at any point where residual value is recyclable. Supply chains link value chains.
Who can resist asking the people at the aptly named Supplychaindefinitions.com?
“… the movement of materials as they flow from their source to the end customer. Supply Chain includes purchasing, manufacturing, warehousing, transportation, customer service, demand planning, supply planning and Supply Chain management. It is made up of the people, activities, information and resources involved in moving a product from its supplier to customer".
Investopedia.com offers up this definition which I particularly like as it highlights Supply Chain as a 'crucial process' whilst there are many people who still dispute this.
“The network created amongst different companies producing, handling and/or distributing a specific product. Specifically, the supply chain encompasses the steps it takes to get a good or service from the supplier to the customer. Supply chain management is a crucial process for many companies, and many companies strive to have the most optimized supply chain because it usually translates to lower costs for the company".
