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Earthquake technology inspired Partch to invent the SCM in the 1970’s

Earthquake technology inspired Partch to invent the SCM in the 1970’s

 


It should be noted that Oliver was part of a team that created the concept of “supply chain management.” The first project in which the team participated took place from 1980 to 1982 in Switzerland, under the management of business analyst Wolfgang Bartsch. The term first appeared in 1982, in the Business Journal German Wirtschaftswoche”.

Dr. Bartsch himself contacted us, grateful for the amendment, but added that we still don’t have anything like the full story of how “supply chain management” was born. And so we set up an interview, and Dr. Bartsch told us, in captivating detail, how he helped change the face of supply chain forever.

Partch changed the face of the supply chain forever

Born in Vienna, Bartsch earned his Ph.D. in physics from the city’s university. For four years in the early 1970s, he worked as a software engineer, before becoming a logistics consultant with Kearney, in 1975. Three years later, he joined Booz.Allen & Hamilton, where he began formulating the concept of supply chain management as a senior associate with Keith Oliver on part. from the same team.

“Keith was a consultant,” says Partch. I was younger, and I was just a partner. Although supply chain management was my concept, it was Keith who introduced it to customers and so he ended up getting all the glory,” he adds, smiling. This is exactly the case. “

Partch’s vision of how best companies can make, move and deliver goods around the world may have been formulated more than 50 years ago, but with so much turmoil and uncertainty today, it has never had a greater impact.

“My vision was to dismantle information silos,” he says.

Sound familiar?

“The goal was to help companies see from one end to the other, operationally speaking, without information interruption,” he adds.

Or, in today’s terminology, a comprehensive view of the supply chain.

Bartsch SCM Science Based Thinking

Bartsch’s revolutionary thinking was not based on mercantile thinking, but on natural science.

“It really struck me how, with earthquakes, you can measure shock waves from thousands of miles away. My vision was of something similar to supply, where something like purchasing has an impact on sales and production at the other end of the chain,” he explains.

Partch’s thinking here was crystallized by a seminal 1961 book, Industrial Dynamics, by Jay Forrester.

“Forrester was an industrial engineer, very mathematical book, but I’m a physicist, and so I understood his ideas.”

In the late 1970s, Bartsch’s vision for the future of sourcing began to take shape, and by the early 1980s, he had formulated a coherent sourcing strategy that was appropriate to present to boards of directors.

On a trip to a Swiss client, Bartsch and his team found a name for their concept, and it’s all thanks to Blizzard.

“We were driving to a customer through heavy snow,” he recounts. “We had to get out the snow chains to put on the wheels, and that’s when I came up with the idea of ​​using the chain idea to describe our supply management strategy, because chains have so many links that they make a whole thing.”

Now, 40 years later, Dr. Partch’s thinking has helped hundreds of companies—including Pierre Cardin, Red Bull, Nestle, Siemens, IBM, and Ferrari—save billions of dollars, by streamlining their supply chains, and making them run more efficiently.

Sources

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2/ https://supplychaindigital.com/digital-supply-chain/earthquake-tech-inspired-partsch-to-invent-scm-in-1970s

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