1. Why can the current movement toward supply chains be characterized as a revolution?
Traditionally firms felt the need to cooperate with their supply chain partners. However the association was limited to an acknowledged dependency and institutional specialization. There was a lack of commitment primarily due to lack of high quality information. However during the last decade, rapid advancements have taken place in the area of information technology. This has enhanced the speed of obtaining and sharing of information between the supply chain partners and consequently increased the level of collaboration within the traditional distribution channel. This process was accelerated with the Internet and worldwide web explosion. With this arrangement, managers were able to reduce non-value-added services, duplication, and redundancy between the consecutive stages of order fulfillment process. Moreover the managers began to believe that such sharing could beneficial for the partners. These efforts to extend and leverage the operating range of the individual firms have propelled the manifestation of collaborative supply chains. This transformation has been so rapid and abrupt that it could be labeled as a revolution.
2. Compare the concept of a modern supply chain with more traditional distribution channels. Be specific regarding similarities and differences.
Traditional distribution channels typically had an order fulfillment time of 15-30 days. But if something went wrong, this time would increase dramatically. It was a common practice to maintain inventory at every stage of the supply chain like retailers, wholesalers, and manufacturers. The market was characterized by scarcity to the primary goal of traditional model was to ensure availability of products. However today customers want more options in product offerings. Modern supply chain is geared towards meeting