If you’ve felt like the phrase “supply chain” is everywhere lately, you’re not wrong. It’s become part of our daily language — in business meetings, in news reports, in casual conversations. And for good reason.
The supply chain affects everything. What we buy. What we can’t find. What costs more than it used to. But where did it come from? And how did it become one of the most essential forces behind modern manufacturing?
Let’s take a step back.
What It Was
Before the first industrial revolution, supply chains were simple. Life was local. People relied on what was grown, built, or traded nearby. Long-distance transportation wasn’t yet a part of life, and production was limited by geography.
That changed quickly with the arrival of industry. Each industrial revolution brought new tools, new technologies, and a dramatic increase in production — which meant we needed better ways to move and manage all those goods.
Transportation was the turning point.
Where It Went
Without transportation, there is no modern supply chain. The railroad changed everything. But it was the internal combustion engine that transformed it.
In the late 19th century, diesel engines and the invention of the semi-truck gave businesses new ways to move product. Around the same time, new tools for handling goods — including hand trucks and early forklift concepts — started to take shape.
As goods began moving more freely across long distances, we needed places to store them. Warehouses evolved. Storage buildings expanded. Pallets made vertical storage more efficient. And the forklift? It became the workhorse of the warehouse.
Simple as it sounds, these were major innovations that made modern logistics possible.
What Took It Further
World War II marked a shift.
Military supply needs drove innovation. We weren’t just managing goods anymore — we were engineering full-scale systems to track, deliver, and replenish materials across the globe.
From the 1930s through the 1970s, some of the most important supply chain advancements emerged:
- New pallet systems and storage innovations
- The invention of the shipping container in the 1950s
- A growing shift from rail to trucks in the 1960s
- IBM’s creation of a computerized inventory system in 1967
- Real-time warehouse management systems (WMS), barcodes, and scanners in the 1970s
By the 1980s and 1990s, supply chain systems became more connected, more digital, and more global. In 1983, the term Supply Chain Management was officially born.
Computers, spreadsheets, networked distribution models — all of it came together to shape the supply chain into something far bigger than anyone expected. Suddenly, the world was within reach.
What’s Next
Today, the global supply chain is a living, breathing system. Goods are sourced from everywhere. Operations are monitored in real time. And artificial intelligence is used to forecast demand, manage orders, and analyze performance with a level of speed and precision that would’ve seemed impossible just a few decades ago.
This is the Internet of Things (IoT) era — and supply chains are more interconnected than ever.
What comes next? More innovation. More complexity. And more opportunity to solve hard problems with smart systems.
And that’s exactly the kind of work we do every day at FlexTrades.