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History of Change – Supply System


The evolution of the supply chain has highlighted that supply systems have undergone massive changes. An overview how supply system has gradually modified and enhanced and become modern supply chain system is presented below:

1970

In the ‘70s, the supply system was a star-shaped organization characterized by direct relationships between customer and suppliers. The literature was influenced by the growth poles theory. Three main typologies of supplying:

  1. Capacity supplying

  2. Specialization supplying

  3. Supply-type supplying

1980

The transaction costs theory and cooperative game theory of the firm. Literature devote much of their attention to the Japanese industrial system, based on well-developed supply relationships. Supply systems evolved towards a pyramidal organization structure and mutual trust between customer and first-tier suppliers, which developed through shared knowledge and the exchange of information.


1990

Customer-supplier relationships was affected by the debate on strategic alliances Supply systems were characterized by an intense network of collaborative/competitive relationships between firms, which involved the entire supply system. Supply systems had a pyramidal organization coordinated by the customer (customer visible hand). Relationships could be represented by a variety of actions driven by the customer, which encouraged the circulation of knowledge within the system, eased the innovation process, and reduced the opportunism of individual suppliers.


2000

Supply systems were strongly influenced by the phenomenon of globalization. Influence was on extended enterprise and virtual enterprise and the impact of globalization on the supply chain. The importance of control factors influencing procurement, processing and distribution by means a suitable information system. Knowledge management was an increasingly critical factor in governing supply systems.


2010

Supply systems appeared to be affected by the debate on sustainability. New concepts such as the resilient supply system, the risk supply system, the green supply chain, the financial supply chain, and circular supply system began to spread, which highlighted that the supply chain is a complex circular process where a relevant role is played by the circulation of information and knowledge.


Today the supply chain is a multi-objective system (economic, productive, strategic, environmental, social, etc.) crossed by a variety of flows (financial, material, information, technology, etc.) In such a complex system, management of the processes of adoption, creation, storage, transfer, sharing and application of knowledge appears to be the necessary response to the new challenges posed (COVID 19) to the supply chain by globalization and sustainability issues.



Azhar Qadri

Supply Chain Expert | Operational Intelligence | Smart Manufacturing & Excellence | Supply Chain Optimization | Consultant and Trainer

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MBA, BE, PE, CSSC, CPIA, CSCP CDDP, CSCM, CSCA

Trainer and Consultant - SMEDA

Executive Member - SCAP

A successful career in supply chain necessitates a never-ending thirst for knowledge and the most up-to-date supply chain skills and knowledge. Even though continuing education and certification programs can take time and money, they help get your specialized knowledge or skills recognized.

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When professionals have training that other professionals lack, it distinguishes them and sets them apart from the crowd. Certification and master classes show that the professionals are committed to learning, excelling, and using best practices.

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Featured Certification Programs

Certified Stores and Stock Controller (CSSC)

Certified Production and Inventory Analyst (CPIA)


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Advanced

Mini-Master and Master Class

Supply Chain Sustainability with Circularity to Drive Profitability

Circularity is a methodology to reduce risk by eliminating waste and pollution in your supply chain. Circularity is above lean, superefficient supply chains by removing unnecessary inputs to the products and services.....

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Advanced

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Implementing 3PL and 4PL Strategies in the Value Chain

In an increasingly challenging overall market situation, it is difficult for any organization to anticipate and accommodate all internal expertise. Outsourcing logistics allows an organization to concentrate on its .....

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Advanced

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Collaboration among Sustainability, Procurement and Supply Chain

Sustainable procurement is the practice of making buying decisions that meet an organization's needs for goods and services in a way that is good for both the organization and society as a whole, minimizing its impact on the .....

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Foundational

Mini-Master and Master Class

Supply Chain Framework and Strategy

It's no secret that the field of supply chain management is thriving. Businesses all around the world have changed their strategies and, more crucially, globalization and competition have forced businesses to rethink how they operate .....

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Intermediate

Certification Program

(CSSC) Certified Stores and Stock Controller

CSSC certification is designed to increase knowledge of the role of the store and warehouse, the functions of the store and warehouse personnel, how stock is managed and moved into through and out .....

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Intermediate

Certification Program

(CPIA) Certified Production and Inventory Analyst

CPIA program is designed to increase your knowledge of a business environment and in particular the role manufacturing plays in business. The program will provide insights into the many opportunities that exist .....

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