History of Purchasing and Supply Management

• Prior to 1900 — Purchasing was recognized as an independent function by many railroad organizations.
• Prior to World War I (1914-1918) — Purchasing was regarded as primarily clerical.
• During World War I (1914-1918) and World War II (1939-1945) — Function increased due to the importance of obtaining raw materials, supplies, and services needed to keep the factories and mines operating.
• During 1950s and 1960s — Purchasing continued to gain stature as the techniques for performing the function became more refined and as the number of trained professionals increased. The emphasis became more managerial.
• During 1970s and 1980s — More emphasis was placed on purchasing strategy as the ability to obtain needed items from suppliers at realistic prices increased.
• During 1990s — Purchasing became more integrated into the overall corporate strategy.
• Current — The field is experiencing increasing integration with supply networks and information technology. The field has changed from "purchasing" to "supply management" to reflect the transition from a transaction-based, tactical function to a process-oriented, strategic one.