Paper

The evolution and future of logistics and supply chain management
Ronald H. Ballou
Weatherhead School of Management,
Case Western Reserve University, Cleveland, Ohio, USA
Abstract
Purpose – This paper traces the evolution of logistics and supply chain management (SCM) and projects the state of the field in the near term with the attendant challenges for those who must plan and controllogistics/supply chain operations.
Design/methodology/approach – Key events that created business logistics are noted, the views of the field leaders are identified and assessed, and research outcomes are compared as a basis for how logistics/SCM is viewed today.
Findings – The scope of the field has broadened bringing new challenges for researchers and managers, but the broader scope was envisionedfrom its formation. Improvements in information technology and the just-in-time philosophy are the principal drivers for realizing the potential of boundary-spanning channel management.
Research limitations/implications – The conclusions and projections are based on the author’s interpretation of the events surrounding logistics and the supply chain as they have occurred over the last 45 years.Practical implications – Researchers and managers should find the projections of this paper valuable in defining their action agendas for improving logistics/supply chain operations. Principal among the challenges is the need for a boundary-spanning accounting system, for a mechanism of sharing the benefits of cooperation among supply chain members, for enhanced relationship skills oflogistics/supply chain managers, and for improved methods of estimating the revenue contribution
potential of the supply chain.
Originality/value – The personal observations of the author lend a unique perspective as to how the logistics/supply chain has developed and what challenges face researchers and managers if the future potential of the field is to be realized.
Keywords Supply chain management,Distribution management
Paper type Conceptual paper

It has been my good fortune to experience the inception and growth of business
logistics, and now supply chain management (SCM), as an area of academic study, research, and business practice. As a logistician, I will trace the evolution of thought in
the field, make some predictions as to where the field may be headed, and suggest
challengesthat may be facing logistics managers in the future. Much of what I have to
say is based on my understanding of the events of the past as they occurred in the USA and what these events mean for the future. There is no documented historical record withstanding scientific scrutiny that can be used to validate what occurred and why. Conclusions in this paper come from my impression of the eventssurrounding business logistics, their basis, and their meaning from the vantage point of one who has lived through the formation and growth of business logistics and who has been deeply involved in logistics education, research, and practice for more than 40 years.
This paper will be divided into three sections: past, present, and future. The past section will trace major events that created businesslogistics as it is practiced today. In particular, do the events portend the future of business logistics and SCM? The present section will attempt to summarize the state of business logistics. How business logistics relates to SCM will be addressed. The future section will make some predictions as to the issues that need to be addressed by managers and researchers, and the events that will likelytake place in the near term.

The past
The backdrop
Before the 1950s, logistics was thought of in military terms. It had to do with procurement, maintenance, and transportation of military facilities, materiel, and personnel. Although a few authors before this time began talking about trading one cost for another, such as transportation costs with inventory costs, and discussed the benefits...