1-4- Development Trends

The text discusses various development trends in supply chain and supply chain management, highlighting how this field has continuously evolved since its inception in the early 1980s. These development trends include:

1. Shift from Functional to Process Perspective: In the past, businesses often focused on functional silos. However, supply chain management has encouraged managers to view their challenges from a process perspective, recognizing that functions make sense when seen in the context of the entire supply chain.
2. Transition from Operational to Strategic Viewpoint: Initially, supply chain management was seen as a way to reduce operational costs, such as optimizing logistics operations. Over time, managers realized that effective changes require a strategic perspective, with operational excellence manifesting through strategic alignment.
3. Move from Single Enterprise to Extended Enterprise: Supply chain management has replaced enterprise management, as the supply chain is now considered the extended enterprise. Competition has shifted from individual organizations to supply chains, leading to new ideas and strategies.
4. Transition from Transactional to Relationship-Based Engagement: While business engagement used to be transaction-based and cost-driven, the current approach involves relationship-based engagement. This approach still includes transactional activities but emphasizes knowledge exchange, long-term commitments, incentives, and rewards.
5. Shift from Local to Regional and Global Connections: Supply networks have evolved from local to regional and global connections. Many enterprises and supply chains now have global ties, driven by cost considerations and the advantages of establishing a global market presence.

The text also mentions that while there are positive trends in supply chain development, there are challenges as well. Supply chain risks are increasing, and supply chain integration remains a major management challenge across various industries. Managing and improving supply chain performance is becoming more complex, requiring a deeper understanding of the challenges supply chains face.