Monday 22 October 2007

The changing trend of Supply Chains

Scientific management has been the centre of industrial management since the T model days of Ford. We have moved from that era of vertical integration to value creation to supply chain value creation in recent times through management of dispersed supply chains.
Since the 1980's there are various mechanisms of value creation like outsourcing ( focus on core competence) which moved the focus from vertically integrated factory to Supply chain management. This was further fueled by the combination of Information Technology (IT) and business process re-engineering through IT revolution happening faster during the 1990's where companies like DELL thrived. With the entry of WTO and increased globalisation in the millennium markets became wider than before and so did the source of supplies. We are globalising continuously without engaging in the critical debate of when will this globalisation hit the balance between localisation and globalisation. This comes also with the concern for environment which is beginning to influence supply chains. It is important for companies to understand this because any company and every supply chain (other than deeply rooted local service companies) will be affected by this.
From the "Ford's T model days " till todays "Toyota's today" we have seen a sea change in the way organisaitons are managed/evolved and how Industrial engineers job profile have changed. It is very hard for any Industrial studies to neglect supply chain thinking because thats the way businesses are managed today and will continue to dominate till times known and will continue to change even more faster in the future.

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