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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)