Overview

The post-World War II development of tactical supply chain management (SCM) in the United States and Europe can be traced to a handful of changes in business practices that date back to the 1970s. Of interest is the fact that although these projects shared the goals of process integration and enhanced performance, they were undertaken completely independent of one another. Whether this is a phenomenon best attributed to the idea that "great minds think alike" or because organizations of the period were completely devoid of internal communication is best left to debate. The final result is a confluence of best practices that form the Western component of the genesis of global SCM.

The first efforts to integrate what were then domestic supply chains involved the linking of forecasts with the purchase of raw materials and finished goods production. Although far from science, a combination of closer contact with end users and better forecasting techniques had advanced the discipline since its inception in the early part of the century. Even today, there is room for improvement in any methodology that unites real market demand with production planning. However, by the 1970s, advances in forecasting had brought tangible benefits to the plant floor and the integration of business functions.

These ties were actually part of a comprehensive approach to manufacturing that was known as manufacturing planning and control (MPC). A methodology that is still in use today, MPC is an integrated process that helps organizations to determine raw materials requirements,...