A LITERATURE REVIEW ON SUPPLY CHAIN MANAGEMENT EVOLUTION

The purpose of this paper is to create a better understanding of what Supply Chain Management (SCM) is how it has evolved and the factors that have influenced its evolution. Through examining the literature, this paper will highlight the evolution history of SCM and the factors that have affected it. According to this paper, the evolution history of SCM can be segmented into four stages: 1) the pre SCM stage, 2) the creation stage, 3) the integration stage and 4) the globalisation stage. In the last part of the paper will be discussed the factors that have affected the evolution process of SCM. Some of these factors are: the firms focus on cost reduction; increased global competition; the firm focus on increase efficiency and performance; consolidation of trade liberalisation policies and the globalisation movement; increasing retail concentration - centralisation and power; and increased companies focus on customer satisfaction.