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Logistics is launched in English
This is the first
time the word was used in the English language. -
F.W. Taylor and Scientific Management
"the systematic study of relationships between people and tasks for the purpose of redesigning the work proccess to increase efficiency...if the amount of time and effort that each worker expends to produce a unit of output can be reduced by increasing specialization and the division of labor, the production process will become more efficient" (Jones, George, 2014). -
The term ‘Supply Chain’ is used for the first time
Nearly 100 years after the word Logistics was first coined in the UK, ‘The Independent’ newspaper ran an article describing ‘Supply Chain’, again this was in relation to wartime activities. -
The birth of the ‘Assembly Line’
Ford, now a well-known car manufacturer, installed their first moving assembly line capable of producing an entire automobile to enable them to produce their vehicles whilst ensuring economy of sale for their business. This process was the creation of the ‘Assembly Line’. -
Fordism is Born
In the year 1914 Ford's manufacturing plants were experiencing employee turnover rates as high as 300-400 percent. In order to address the problem Henry Ford anounced that he was reducing the work day by an hour while double the wage of factory employees. This caused Ford to become internationally famous, and led to the creation of the term Fordism (Jones, George, 2014). -
Arch W. Shaw writes textbook: Some Problems in Market Distribution
This textbook is believed by many to be the first to discuss what is now called supply chain management; however, Shaw never used the term himself. His book touched on topics such as: how best to purchase raw materials, transport products, locate facilities, and analyze productivity and waste (Wisner, Tan, Leong, 2012). -
Max Weber's Theory of Bureaucracy
In 1922 Weber published "Economy and Society," Analysis of the bureaucratization the ideal bureaucracy is one that includes hierarchical organization, delineated lines of authority with fixed areas of activity, action taken on the basis of, and recorded in, written rules, bureaucratic officials with expert training, rules implemented by neutral official, and career advancement (Boundless, 2015). -
Mass Production
Ford Motor Company's use of assembly lines allowed them to utilize the theory of mass production in order to strive for an economy of scale (Robinson, 2013). I have learned from my transportation classes that economies of scale occur when companies manufacture a good at a very large scale in order to lower the cost per unit. -
Hawthorne Effect
The Hawthorne study showed that human factors (researchers and supervisors) often have a larger impact on motivating employees compared to the effects physical conditions impose. Because of this, researchers saw an increase in productivity even when they decrease the work conditions (Clark, 2011). -
Pallets and Pallet Lift Mechanisation
During the 1940’s in to the 50’s the focus in the logistics field was on finding ways to obtain better warehouse space, the use of racking and ultimately ways to achieve the best possible layout for a warehouse. Use of pallets became increasingly popular during
this time alongside the ‘unit load’ concept. -
Kurt Lewin: Organizational Development
Kurt Lewin was a social scientist who launched the Research Center for Group Dynamics at the Massachusetts Institute of Technology. His work at the facility in change theory, action research, and action led to him being crowned with the title “Father of Organization Development.” Organizational development is the systematic application of behavioral science knowledge at various levels (group, intergroup, and total organization) to bring about planned change (Clark, 2011). -
Sociotechnical Systems Theory
Eric Trist, of London's Tavistock Institute of Human Relations, led a research study on a South Yorkshire coal mine. The research led to the development of the Sociotechnical Systems Theory (SST), which considers both the social and technical aspects when designing jobs. The four subdivisions of SST are environment subsystem, social subsystem, technical subsystem, organizational design (Clark 2011). -
Transport Management
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Barcoding
In 1952 a patent was issued to Norman J Woodland and Bernard Silver. US Patent 2612994 was for a Barcoding system. The warehousing world was about to be revolutionised. -
Hierarchy of Needs
Abraham Maslow published his book "Motivation and Personality," which included one of the earlies depictions of Maslow's Hierarchy of Needs. Generally depicted as a pyramid, the hierarchy includes the sections self-actualization, esteem, social, safety, and pyschological. According to Clark, the hierarchy "provides a framework for gaining employees' commitment" (2011). -
Peter Ducker's 5 Basic Roles of Management
In 1954 Peter Ducker published his book "The Practice of Management" (Clark, 2011). His book was the introduction to the 5 basic roles of government. According to Ducker, the five roles of management are to set objectives, organize, motivate and communicate, measure, and develop people (What do Managers do, 2014). -
Herzberg's Hygiene and Motivation Factors
Frederick Herzberg's research led him to theorize that before employees could be motivated to work, certain hygiene factors must be met. One of the major hygiene factors, or dissatisfiers, is the working condition of employees (Clark, 2011). -
Theory X and Theory Y
In 1960 Douglas McGregor published his book "The Human Side of Enterprise." His book had a large impact on management, mostly due to his Theory X and Theory Y. Theory X focused on lower-order needs and made the assumption that management's role is to coerce and control employees. Theory Y focused on higher-order needs and assumed managements role is to develop employees potential for the companies need (Clark, 2011). -
Electronic Data Exchange
In 1960 the discovery was made that computer systems had the capability to transfer data from one computer to another enabling the exchange of electronic business documents. Whilst this is something we now do so often it is the ‘norm’ in 1960 this was a massive advancement for businesses around the world. -
Material Requirement Plan
IBM employee Gene Thomas developed a document called ‘Bill of Materials’. This is the first known version of a Material Requirement Plan (MRP). -
National Council of Physical Distribution Management is Formed
In 1963 a group of men from both industry and academia got together to form the National Council of Physical Distribution Management (NCPDM). It was the first time that individuals within the transportation idustry could get to gether to talk about their field (Stock, 2013). -
Recycling
Recycling is an area of focus for most businesses these days, going green, looking at ways to cut down on waste and find environmentally friendly ways to dispose of waste is big business. In 1971 was a relatively new concept for businesses following the release of a book titled ‘The Environmental Handbook Prepared For The First National Environmental Teach-In’ was released by Garrett De Bell, in 1970. -
Reverse Logistics
In modern times Reverse logistics are applied in many different ways, most commonly is the collection of products that are being returned. -
First Personal Computer (PC) sold at retail store
The invention of PCs meant that it was financially feasable for companies of all sizes to afford to have access to softwares, that previously would require mainframes or minicomputers. The ability for companies to be able to use these softwares allows them to become more efficient and effective, which benefits the whole supply chain (Stock, 2013). -
First widely accepted use of Supply Chain Management
First widely accepted use of the term supply chain management was published in a public paper in 1982. Many supply chain management practices still used today are implemented. These practices include the Just-in-Time strategy (JIT) and the Total Quality Management (TQM) strategy (Wisner, Tan, Leong, 2012). -
NCPDM Name and Focus change
Because the National Council of Physical Distribution Management group is geared towards always learning new thing about the indunstry, the group itself needs to be adaptive. In 1985 the NCPDM change their name to Council of Logistics Management (CLM) as the transportation industry became focused around logistics management (Stock, 2013). -
Fed Ex Re-invents Express Parcel Shipments
In 1985 Fed Ex developed a new computerized tracking system that provided near real time information about packages for delivery. Equipping drivers with portable hand held computers to scan pickups and deliveries, meaning the status of a shipment could be monitored end to end. -
Lean Manufacturing
The term ‘Lean Manufacturing’ certainly was. When Womack, Jones, and Roos wrote THE MACHINE THAT CHANGED THE WORLD in 1990, Japanese automakers were making a strong showing by applying the principles of lean production. However, the full power of lean principles were unproven. Today, the power of lean production has been conclusively proved by Toyota's unparalleled success, and the concepts have been widely applied in many industries. -
Amazon Order and Delivery
In 1998 Jeff Bezos left his job on Wall Street to start Amazon. Within four months, the company became extremely popular. Within a month of its website launch Amazon had filled orders from 50 states and 45 countries. Amazon only carried 2,000 titles in its Seattle warehouse; however, usually no warehouse was needed because most orders were placed through wholesalers and publishers. -
Track and Trace
In 2000 RFID was developed at the MIT Auto-ID Center. It is a code-carrying technology, and can be used in place of a barcode to enable non-line of sight-reading. It's synonymous with track-and-trace solutions and has a critical role to play in supply chains. -
Terrorists and the Supply Chain
After the devistating attacks of 9/11, professionals in the tranportation idustry realized that the global supply chain had become less safe. Companies now had to undergo extensive risk management actions with each shipment, where as it had not been a necessity (Stock, 2013). -
The creation of the ‘Value Network’
The author of the book Verna Allee provides a collection of frameworks and ideas to help organisational leaders navigate through the challenges in a knowledge-based society. Her value network approach identifies key and exploitable relationships within complex, dynamic, organisational systems. These ideas are compatible with creating strategic dialogues within learning organisations. -
The CLM Reacts to Changes in the Industry Once Again
The Council of Logistics Managers found themselves falling behind the changing transportation industry. In 2005 the council made the decision to change the name of the council to the Council of Supply Chain Management Professionals, because logistics had become apart of a large process known as supply chain management. -
Creation of the Blockchain
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The creation of The Institute of Supply Chain Management
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6 Major Supply Chain Trends for 2018
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Artificial intelligence (AI), Internet of Things (IoT), Immersive technologies, Blockchain, Digital twins, 3D printing
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The future of the supply chain