The History of Logitic

In the current era, it is clear that new modes of production are concomitant with new modes
of distribution, which advances the field of logistics, the science of physical distribution or
even supply chain management. Although logistics represents a whole system of space/time
interdependencies, we believe that the discussion of its history and chronological evolution of
supply chain still requires extensive studies to explore its origin and its advance in time, from
a new point of view.
Logistics was first applied and recognised in military operations, its most significant impact is
felt through the functions of production, distribution and consumption 1. It became a large-
scale activity during the industrial revolution. The origins of the modern distribution sector
dates back to the emergence of the capitalist economy, the development of specific modes
of industrial production and the deployment of a particular division of labor. This creates a
distinct “sphere of circulation” between production and consumption 2. To a certain extent,
circulation enabled the transition from use value to exchange value, and thus made possible
the large-scale capitalization of commodities. Retailing and marketing have become part of
modern management practice3 and have been important factors in the wealth generation.
It should be known that the concepts of logistics and the supply chain have evolved over the
last half century or so. In an attempt to be logistically correct, research and studies have
followed a specific ranking that is listed in chronological order by decade.
The Chronological Evolution of Logistics & Supply Chain Concepts
The 1950s – The Transportation Era:

In the 1950s, transportation was in focus. Several universities offered courses in the field of
transportation. However, topics such as logistics, logistics, physical sourcing and supply
chain management are not included in these courses. There were no computers or even
pocket calculators back then that could help quantify data 4. There is also not much
discussion (if any) about the systems approach or the concept of total cost. The idea of
working with suppliers or customers was not a priority for most managers at the time. The
term logistics is mainly used in the military field. In times of war, having the right supplies in
the right place at the right time is critical.
1
Rodrigue and Slack, 2002
2
Marx, 1939/1953
3
Chandler, 1977
4
R. Neil Southern, 2011
The main player in the 1950s was the federal government. For example, the most significant
event related to logistics (or transportation) was the Federal Aid Highway Act of 1956, which
authorized the National Interstate Highway and Defense Highway System. The Interstate
Commerce Commission (ICC) (founded in 1887) is the economic regulator of road and rail
transportation. All road and rail freight duties and regulations regarding the entry of road
carriers are under the jurisdiction of the International Chamber of Commerce. The ICC also
regulates the closure of railway lines. In the 1950s, several agencies were available for
transporting students and practitioners. Many companies encourage their transportation
professionals to pass the ICC Practitioner exam administered by the ICC Practitioners
Association (now the Transportation Practitioners Association 1984, the Transportation Law,
Logistics and Policy Association 1994).
The 1960s – Physical Distribution:

The study of transportation in the 1960s evolved into the study of logistics, and to a lesser
extent, logistics. The National Council of Physical Distribution Management (NCPDM) was
established in 1963 to represent professional logistics managers. This organization was
renamed the Council of Logistics Management (CLM) in 1985 and the Council of Supply
Chain Management Professionals (CSCMP) in 2004. Today, CSCMP has more than 14,000
members. In most cases, logistics (outbound logistics) and physical supply (inbound
logistics) are seen as two distinct functions. This was reflected in the two major organizations
of the time. Founded in 1963, NCPDM represents the outbound side of logistics and the
National Association for Purchasing Management (NAPM) represents the inbound side.
NAPM published a new magazine, Purchasing Magazine, in 1965. In the 1960s, there were
some prominent textbook authors and authors of academic and professional journals. During
this decade, one of the first textbooks to focus on logistics distribution and logistics was
Logistics Management: Logistics Problems in the Enterprise5.
While logistics received a lot of attention in literature in the 1960s, with transportation as the
most important function of logistics. In the fall of 1961, the American Transportation
Association published its first issue of Transportation Magazine. In 1966, President Lyndon
B. Johnson signed Public Law 89–670 establishing the Department of Transportation, and
Alan S. Boyd was elected the nation’s first Secretary of Transportation.
The 1970s – Physical Supply, Deregulation and Logistics:

In the early 1970s, the physical supply (or sometimes referred to as material management) of
the input side of the logistics system was taken over. Later in the century, there was a
movement to combine physical distribution with physical delivery, with an emphasis on
broader logistics concept. The 1970s were a pivotal decade for the further development of
the logistics concept. Universities, scholarly journals and textbooks, and professional
organizations all contributed to making the decade productive6.
Transportation is also further emphasized as the most important function in logistics

management. During the period of the 1970s, the Transportation Journal emerged as one of
the leading academic journals in the discipline of transportation and logistics. This is because
the latter has published a set of articles in the fields of economics, industrial management
and carriers, physical distribution, logistics, regulation, public policy, education and
communication.
5
(Smykay, Bowersox, and Mossman 1961) (R. Neil Southern, 2011).
6
(R. Neil Southern, 2011).
other relevant topics in particular. Another logistics-related academic journal that was
introduced in 1978 is the Journal of Business Logistics (JBL), which was published by the
NCPDM and is known today as one of the leading academic journals. JBL’s production took
place at The Ohio State University. Professor Bernard “Bud” LaLonde was JBL’s first editor7
The 1980s – Transportation Deregulation, Physical Distribution and

Business Logistics:
During the 1980s, and specifically in the world of transport, deregulation continued with the
Motor Carrier Act of 1980, which reduced regulation of road freight rates and entry
conditions. The Staggers Rail Act of 1980 allowed the railways to negotiate contracts and
operate with less oversight by the ICC.
Indeed, the CAB ceased operations in 1984, and in 1987 the federal government sold its
common stock in Conrail. Federal deregulation of transportation in the United States has
resulted in a more competitive and flexible system8.
The term physical distribution began to be phased out during the 1980s, and the term
logistics came to the fore. For example, James C. Johnson and Donald F. Wood changed
the name of their textbook Contemporary Physical Distribution to Contemporary Physical
Distribution and Logistics. The NCPDM changed its name to the Council of Logistics
Management (CLM) in 1985.
The 1990s – Business Logistics:

During the period of the 1990s, business logistics continued to be a very essential element.
Most cost-focused companies have realized that there are opportunities for cost savings
through negotiations with carriers and the implementation of the systems approach and total
cost concept. Johnson and Wood, in their fourth edition of their textbook, dropped Physical
Distribution from the title, to simply become Contemporary Logistics. Many transport
companies have exploited the concept of logistics, using it from a theoretical angle,
promoting the idea that they were not only transport companies, that they were logistics
carriers, or they provided logistical solutions9 .
During the 1990s, the main factors affecting logistics was the rapid development in
electronics and communication technologies, such as the Internet and electronic data
interchange. The growth of third-party logistics organizations, strategic alliances and
partnerships has also been significant. Companies have started to see logistics as an
integral part of overall business strategy.
The 2000s – Logistics and Supply Chain Management:

The early years of the 21st century have seen a slow evolution from logistics to supply chain
management in academia and business. As part of the business world, small and medium
enterprises have been slower to accept the supply chain concept.
Supply chain management has therefore come to be seen as a chain that encompasses the
planning and management of all activities involved in sourcing and converting and all
logistics management activities.
7
(Miyazaki, Anthony D. and al. (1999)).
8 et 9
(R. Neil Southern, 2011).
The Transport and Logistics Basics textbook states: “The supply chain includes all partners
in the logistics process. The idea is to have integrated information sharing between all
trading partners (suppliers, manufacturers and customers)”.
This assessment of logistics and supply chain management over the past few years would
not be complete without a mention of development through online and distance education in
logistics and supply chain management. It would be rare to find a college or university that
didn’t have some sort of online presence. Distance learning is an important part of teaching
logistics. The Logistics Management Institute claims to be the oldest logistics distance
learning school in the world (R. Neil Southern, 2011).
The 2010 – present – The Era of Supply Chain Digitalization

The digitalization of the Supply Chain corresponds to the dematerialization of information
processing. This digitalization offers better management of data flows as well as unparalleled
reliability of information related to the Supply Chain. For optimal production flow
management, the digitalization of flows (physical logistics flow or logistics just-in-time) is
therefore essential.
Nowadays, different types of businesses find themselves faced to an increased and

globalized competition. In order to remain competitive, the digitization of the supply chain has
become necessary. The benefits of the digital of supply chains are no longer debated.

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In the current era, it is clear that new modes of production are concomitant with new modes

The Chronological Evolution of Logistics & Supply Chain Concepts

The 1950s – The Transportation Era:

The 1960s – Physical Distribution:

The 1970s – Physical Supply, Deregulation and Logistics:

Transportation is also further emphasized as the most important function in logistics

The 1980s – Transportation Deregulation, Physical Distribution and

The 1990s – Business Logistics:

The 2000s – Logistics and Supply Chain Management:

The 2010 – present – The Era of Supply Chain Digitalization

Nowadays, different types of businesses find themselves faced to an increased and

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