SCM 3301 Lecture 2: Origins of SCM

• School: University of Houston
• Department: Supply Chain Management
• Course: SCM 3301
• Professor: Wayhan Victor

Document Summary

Describe brief history of some trends in supply chain management. Worried about economies of scale (more i make, cheaper it gets) Aka fixed cost is spread out more, so the fc is spread out lowering per unit cost. 1960s & 1970s: new computer tech (mrp, mrp2) Allowed decision makers to plan and operate more effectively. 1980s & 1990s: intense global competition (jit, tqm, bpr, & 3pl) They had more advanced scm and stuff just in time, shipping comes just as needed. Tqm --> total quality management; strategy precursor to lean 6 sigma; continuing improvement (small improvement incrementally) Bpr --> business process reengineering; change management (radically changes structure) 3pl --> 3rd party logistics; contract a 3rd party logistics center, make contracts, and drives costs down while increasing the quality. People realize they need other companies to be unsustainable. Trying to figure out which relationships work best for your business model.