While Supply Chain Management is a new term (first coined in 1982 by Keith Oliver from Booz Allen Hamilton in an interview with the Financial Times), the concepts are ancient and date back to ancient Rome. The term “logistics” has its roots in the Roman military. Additional definitions:
- Logistics involves… “managing the flow of information, cash and ideas through the coordination of supply chain processes and through the strategic addition of place, period and pattern values” – MIT Center for Transportation and Logistics
- “Supply Chain Management deals with the management of materials, information and financial flows in a network consisting of suppliers, manufacturers, distributors, and customers” ‐ Stanford Supply Chain Forum
- “Call it distribution or logistics or supply chain management. By whatever name it is the sinuous, gritty, and cumbersome process by which companies move materials, parts and products to customers” – Fortune 1994
According to the Council of Supply Chain Management Professionals…
- Logistics management is that part of supply chain management that plans, implements, and controls the efficient, effective forward and reverse flow and storage of goods, services and related information between the point of origin and the point of consumption in order to meet customers’ requirements.
- 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.