European Journal of Purchasing & Supply Management 7 (2001) 39}48 A framework of supply chain management literature Keah Choon Tan* University of Nevada Las Vegas, College of Business, Department of Management, 4505 Maryland Parkway, Box 456009, Las Vegas, NV 89154-6009, USA Received 2 February 1999; received in revised form 6 April 2000; accepted 7 April 2000 Abstract Over the past decade, the traditional purchasing and logistics functions have evolved into a broader strategic approach to materials and distribution management known as supply chain management. This research reviews the literature base and development of supply chain management from two separate paths that eventually merged into the modern era of a holistic and strategic approach to operations, materials and logistics management. In addition, this article attempts to clearly describe supply chain management since the literature is replete with buzzwords that address elements or stages of this new management philosophy. This article also discusses various supply chain management strategies and the conditions conducive to supply chain management. 2000 Elsevier Science Ltd. All rights reserved. Keywords: Logistics; Physical distribution; Purchasing; Supply chain management 1. Introduction During the 1990s, many manufacturers and service providers sought to collaborate with their suppliers and upgrade their purchasing and supply management func- tions from a clerical role to an integral part of a new phenomenon known as supply chain management. Since this aspect of supply chain management primarily fo- cuses on the purchasing and supply management func- tions of industrial buyers, we have classi"ed it elsewhere as the purchasing and supply perspective of supply chain management (Tan et al., 1999, 1998b). Correspondingly, many wholesalers and retailers have also integrated their physical distribution and logistics functions into the transportation and logistics perspective of supply chain management to enhance competitive advantage. Over the last 10 years, these two traditional supporting func- tions of corporate strategy evolved along separate paths and eventually merged into a holistic and strategic ap- proach to operations, materials and logistics manage- ment, commonly referred to as supply chain management (SCM). This article reviews the literature base and deve- lopment of supply chain management along these two * Tel.: #1-702-895-3873; fax: #1-702-895-4370. E-mail address: kctan@nevada.edu (K.C. Tan). separate paths and integrates the two bodies of literature in the uni"cation of supply chain management into a commonly accepted terminology that includes all the value creating activities along the value chain. In addi- tion, this article attempts to describe supply chain man- agement clearly, since the term has been used very liberally in the literature. This article also discusses vari- ous supply chain strategies and the conditions conducive to supply chain management. 2. Supply chain management de5ned The literature is replete with buzzwords such as: integ- rated purchasing strategy, integrated logistics, supplier integration, buyer}supplier partnerships, supply base management, strategic supplier alliances, supply chain synchronization and supply chain management, to address elements or stages of this new management philosophy (Tan et al., 1998a; New, 1997; La Londe and Masters, 1994). While each terminology addresses elements of the phenomenon, typically focusing on im- mediate suppliers of an organization, supply chain man- agement is the most widely used (but abused) term to describe this philosophy. Unfortunately, there is no ex- plicit description of supply chain management or its activities in the literature (New, 1997). For example, Harland (1996) describes supply chain management as 0969-7012/00/$ - see front matter 2000 Elsevier Science Ltd. All rights reserved. PII: S 0 9 6 9 - 7 0 1 2 ( 0 0 ) 0 0 0 2 0 - 4