An evolving trajectory – from PD, logistics, SCM to the theory of material flow

Abstract

The growing interest in the material flow (MF) theory has invoked much interesting research in recent years. Although the MF theory is relatively new, a review of the related literature from a historical perspective shows that MF theory represents a new stage of the evolutionary development of interrelated subjects such as Physical Distribution (PD), Logistics, and Supply Chain Management (SCM). The purpose of this paper is to provide a summative review of the evolution of the subjects of PD, Logistics, and SCM, and their new development, MF theory. The paper aims at tracing how concepts and findings in PD, Logistics, SCM, and MF have been developed and have evolved. The study shows that PD evolved to Logistics in middle of the 1980s; starting from the late 1990s, Logistics has evolved to SCM; and today PD, Logistics, and SCM can be considered to be under the umbrella provided by a new theory called MF theory. This paper points out that MF theory is a necessity to deal with the overwhelming complexity of material flow systems in the global economy of the twenty-first century.