(Group-4)Decision Environment Factors Involved in SCM

7/29/2019 (Group-4)Decision Environment Factors Involved in SCM

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EXTERNAL FACTORS

MACROMICRO

INTERNAL FACTORS

ResourcesProcess

Technology


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External factorsMacro Micro

Internal factorsSupply chainmanagement


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External factorsMacro: (industry level)

Economic

Recession, Labour cost, exchange rates

Technological

Telecommunications and computer technology allow all the

actors in the supply chain to communicate among each other.

New technologies keep on emerging in the market. Accurately

identify which new developments will be truly useful.

Competitive

Uncertainty about competitors moves and actions. increased

competition makes any organization that is ignoring its supply

chain at risk of becoming obsolete


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External factors (contd)

Political and legal (new regulations)

Legal factors can limit or change how a business operates.

Favourable political parties might be beneficial (if in power).

Environmental (Natural disasters):

Things like natural disasters can disrupt production and supply

operations, or even destroy company assets.

Governmental

The level of support that the company receives from the

government when importing raw materials or products from

overseas or using domestic materials.


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External factors (contd)Micro: (Firm level)

SuppliersCompanies are inclined to work with different suppliers in

different ways. It is important that the relationship with

suppliers satisfies their company needs.

Marketing intermediaries

Customers

customers look for more choices, better service, higherquality, and faster delivery. The relationship with customers hasturned a strategic issue for todays companies.


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Internal FactorsResources(Human, capital or technology)

Supply chain management is intended to integrate the resource

planning activities in a firm or organization. Some of the most

common planning tools are: material requirement planning

(MRP), manufacturing resources planning (MRPII), andEnterprise Resource Planning (ERP).

MRP

MRPII

ERP


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Internal factors(contd)Process

Customer service

Customer service is defined by demand forecasting, service levels, order

processing, parts/service support, and aftermarket operations.

Order fulfilment

Inventory management

Proper Inventory management is very crucial as it determines the cost of

production, hence the profitability.


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Technology (Supply chain visibility)

The use of information technology allows suppliers,

manufacturers, distributors, retailers, and customers to reduce

lead time, paperwork, and other unnecessary activities.


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Thank you

Presented by:

(Group-4)

R.M.Monish (09MBI105)B.Rajkumar(09MBI109)

Roshini.S(09MBI107)

Raj kamal.R(09MBI111)

(Group-4)Decision Environment Factors Involved in SCM

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