PCB007 Magazine

PCB-July2015

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July 2015 • The PCB Magazine 15 information flows that allow the various sup- ply chain partners to plan, coordinate and com- municate day-to-day activities up and down the supply chain. This also includes soft activities such as the sophisticated software technology required to manage forecasting, MRP, POs and supplier performance. A Brief History of Supply Chain Innovation Supply chain management is not a recent revelation; in fact, the supply chain strategy used 5,000 years ago would give modern sup- ply chain managers a run for their money. In ancient times, transportation technology was so basic that the cost of moving goods was the primary factor, so goods were put together close to the source of raw materials. 2700 BC The earliest example of supply chain man- agement can be seen during the construction of the ancient Egyptian pyramids. These early sup- ply chain managers had to procure thousands of 2.5-ton blocks of stone, transport them across the desert and arrive at the site in time for the various stages of construction. Next time you are at the beach, try to push or pull a cooler filled with ice and beer across the sand and you will quickly appreciate how incredible this feat was. 300 BC The invention of Roman rowing vessels (ships) revolutionized logistics and was the origin of intercontinental trade. This capabil- ity to travel across the sea allowed Alexander the Great the ability to set up a wartime supply chain moving troops, equipment and weapons into India. 700 AD–1500 Intercontinental shipping continued to evolve with the establishment of seaports in major cities around the world. The first postal service was implemented in Europe. 1800 Development of roadways and railroad systems added another dimension to trade and supply chain logistics including the first use of the steam engine and oil powered vehi- cles. 1913 Henry Ford invented the moving assembly line and began the early implementation of JIT both internally and with suppliers. 1956 The sea container was invented in the port of New Jersey, significantly impacting the evo- lution of world trade and globalization. 1960 Electronic data interchange (EDI) was first used to transfer data and documents. 1961 The first material requirement planning (MRP) system was developed in Racine, Wiscon- sin, and a year later IBM used this to develop the first bill of material (BOM). 1970s The first UPC and SKU barcode was used at Marsh's Supermarket in Troy, OH. 1980 MRP was expanded to include all facets of an organization via ERP (Enterprise Resource Planning). 1984 Michael Dell developed the first make-to- order, direct-order fulfillment model. 1985 FedEx reinvented their express shipment model by giving their drivers hand-held com- puters that provide real time shipment informa- tion. 1988 Walmart implemented a cross-docking sys- tem that allowed them to track goods across all of their distribution centers and stores. 1990s The Internet revolutionized supply chain management and collaboration with suppliers. The Toyota production system (TPS) pioneered by Toyota's Taiichi Ohno started to gain wide- spread acceptance in the U.S. to become the SUPPLy CHAIN IN THE 21 ST CENTURy continues Feature

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