During the 1990's, the competitive pressures and short product lifecycles have caused many manufacturing and retail companies to focus on supply chain management practices and applications. Along with the Internet-driven e-Commerce, supply chain software companies became the darling of investors and supply chain practitioners. Indeed, more than any other three letter acronym initiatives such as MRP (Materials Requirements Planning), TQM (Total Quality Management), JIT (Just-In-Time), or CFM (Continuous Flow Manufacturing), Supply Chain Management (SCM) was a program which seemed to broaden the boundaries of business optimization beyond the four walls of the companies, as it addressed cross-organizational or even cross-company issues.

More demanding and sophisticated customers expected customized products (e.g. computers, cars) and short delivery times. Customers' buying decisions were often based on availability, not just on quality and price of the product alone. This created demand for more reliable, capacitated production planning and "available to promise" functionalities. Shorter product cycles not only changed the way products had to be manufactured, but also the way inventory (parts, sub-assemblies, and finished goods) had to be managed. Companies made big efforts to reduce their inventories, even with slogans such as "Zero Inventory", which of course was a vision that could not be achieved. However, various intelligent methods of inventory management were introduced to find optimal stock levels.

Continuing shifts in the geopolitical situation (e.g. NAFTA, Extension of European Union) and emerging markets (e.g. Eastern Europe and China) opened new business opportunities and at the same time kept companies busy revising their supply...