The theoretical foundation of supply chain management

Abstract

Supply chain management (SCM) emerged in the early 1980s as a result of the rapidly changing and challenging business environments in many industries. SCM is a consequence of the increased necessity for holistic considerations in, between and across companies’ business activities and resources in and between marketing channels, in order to improve the overall performance towards the ultimate consumer in the marketplace. SCM’s generic theoretical foundations are derived from time‐, functional‐, and relationship‐dependencies in, between and across companies’ business activities in marketing channels. There are major similarities and minor differences in the theoretical boundaries between SCM and Alderson’s interpretation of a functionalist theory of marketing. The author argues that the theoretical origin of SCM is derived from, and underpinned by, a part of this functionalist theory of marketing. Furthermore, there is a need for a generic re‐definition and expansion of the theoretical boundaries of SCM towards the incorporation of horizontal dependencies between marketing channels in the marketplace.

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