Global supply chain
management
Chapter 1: Supply-chain basics
History of Logistics
The Pyramids in Egypt:
Transport of limestone blocks
transport planning and infrastructure management.
Food supply
inventory management &supply planning.
People (workforce planning)
capacity planning & workforce management.
Mules (transport animals)
resource management.
Equipment
material planning.
The romans
1) Organized Transport
500–550 mules and guides in supply groups.
Shows structured transport and supply planning.
2) Efficiency & Decentralization
Soldiers carried their own equipment and rations.
Reduced dependence on supply trains.
Increased mobility and flexibility.
3) Logistics Enables Strategy
Good logistics made organized military attacks possible.
Logistics supported overall success.
4) Separate Logistics Function
1
, Logistics became a distinct division.
Similar to modern supply chain departments in companies.
1) Strong Infrastructure
Semi-paved roads usable in almost all weather conditions.
Reliable transport system.
2) Military & Supply Support
Easy transport of legions and supplies.
Logistics strengthened military power.
3) Multi-Purpose Design
Built for people and carriages.
Used for trade, transport, and communication.
4) Network Structure
Connected regions efficiently.
Similar to modern highway networks and transport corridors.
Recent history
Infrastructure & Standardization (1920–1960)
1921: First highway (Berlin–Potsdam).
1950: Containerization & trucking standardization (Sea/Road/Train).
1950: Introduction of the Europallet (EPAL).
1961: Implementation of CMR (international road transport
agreement).
Focus: Standardization and international transport efficiency.
Operational Differentiation (1970–1990)
1970: Separation of production vs. distribution logistics.
1980: Introduction of professional computers (MRP systems).
1990: Procurement logistics & reverse logistics.
Focus: Specialization and process optimization.
2
,Integration & Market Expansion (1993–2005)
1993: Europe as one single market.
1995: Supplier management.
2000: Demand management.
2005: RFID & EDI technologies.
Focus: Integration, coordination, and digitalization.
Digital & Smart Logistics (2010–2024)
2010: New global logistics dimensions.
2015: Big data & cloud computing.
2024: Artificial Intelligence (AI).
Focus: Data-driven, automated, and intelligent supply chains.
Transport vs Logistics vs Supply Chain Management
(SCM)
1) Transport
Movement of goods from one location to another.
Focus on transportation activities (road, sea, rail, air).
Part of logistics.
Scope = Only physical movement.
3
, 2) Logistics
Manages the flow of goods within a company.
Includes:
o Warehousing & distribution centers
o Transportation
o Inventory management
o Inbound (from suppliers)
o Outbound (to customers)
Covers:
o Purchase → Production → Distribution
o Resources → Work in progress → End products
Scope = Managing product flow efficiently.
3) Supply Chain Management (SCM)
Broader concept than logistics.
Integrates the entire supply chain:
o Suppliers → Company → Customers
Manages:
o Product flow
o Cash flow
o Information flow
o Return flow
Focus on:
o Integration
o Risk management
o Sustainability
o Continuity
o Added value
o Innovation & E-commerce
Scope = Strategic coordination of the whole network.
4
management
Chapter 1: Supply-chain basics
History of Logistics
The Pyramids in Egypt:
Transport of limestone blocks
transport planning and infrastructure management.
Food supply
inventory management &supply planning.
People (workforce planning)
capacity planning & workforce management.
Mules (transport animals)
resource management.
Equipment
material planning.
The romans
1) Organized Transport
500–550 mules and guides in supply groups.
Shows structured transport and supply planning.
2) Efficiency & Decentralization
Soldiers carried their own equipment and rations.
Reduced dependence on supply trains.
Increased mobility and flexibility.
3) Logistics Enables Strategy
Good logistics made organized military attacks possible.
Logistics supported overall success.
4) Separate Logistics Function
1
, Logistics became a distinct division.
Similar to modern supply chain departments in companies.
1) Strong Infrastructure
Semi-paved roads usable in almost all weather conditions.
Reliable transport system.
2) Military & Supply Support
Easy transport of legions and supplies.
Logistics strengthened military power.
3) Multi-Purpose Design
Built for people and carriages.
Used for trade, transport, and communication.
4) Network Structure
Connected regions efficiently.
Similar to modern highway networks and transport corridors.
Recent history
Infrastructure & Standardization (1920–1960)
1921: First highway (Berlin–Potsdam).
1950: Containerization & trucking standardization (Sea/Road/Train).
1950: Introduction of the Europallet (EPAL).
1961: Implementation of CMR (international road transport
agreement).
Focus: Standardization and international transport efficiency.
Operational Differentiation (1970–1990)
1970: Separation of production vs. distribution logistics.
1980: Introduction of professional computers (MRP systems).
1990: Procurement logistics & reverse logistics.
Focus: Specialization and process optimization.
2
,Integration & Market Expansion (1993–2005)
1993: Europe as one single market.
1995: Supplier management.
2000: Demand management.
2005: RFID & EDI technologies.
Focus: Integration, coordination, and digitalization.
Digital & Smart Logistics (2010–2024)
2010: New global logistics dimensions.
2015: Big data & cloud computing.
2024: Artificial Intelligence (AI).
Focus: Data-driven, automated, and intelligent supply chains.
Transport vs Logistics vs Supply Chain Management
(SCM)
1) Transport
Movement of goods from one location to another.
Focus on transportation activities (road, sea, rail, air).
Part of logistics.
Scope = Only physical movement.
3
, 2) Logistics
Manages the flow of goods within a company.
Includes:
o Warehousing & distribution centers
o Transportation
o Inventory management
o Inbound (from suppliers)
o Outbound (to customers)
Covers:
o Purchase → Production → Distribution
o Resources → Work in progress → End products
Scope = Managing product flow efficiently.
3) Supply Chain Management (SCM)
Broader concept than logistics.
Integrates the entire supply chain:
o Suppliers → Company → Customers
Manages:
o Product flow
o Cash flow
o Information flow
o Return flow
Focus on:
o Integration
o Risk management
o Sustainability
o Continuity
o Added value
o Innovation & E-commerce
Scope = Strategic coordination of the whole network.
4
