EXTERNAL FACTORS MACRO MICRO INTERNAL FACTORS Resources Process Technology

External factors Macro Micro

Supply chain management

Internal factors

External factors
Macro: (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

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.

External factors (contd)

Micro: (Firm level)

Suppliers
Companies 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, higher quality, and faster delivery. The relationship with customers has turned a strategic issue for todays companies.

Internal Factors
Resources(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), and Enterprise Resource Planning (ERP). MRP MRPII ERP

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.

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.

Thank you
Presented by: (Group-4) R.M.Monish (09MBI105) B.Rajkumar(09MBI109) Roshini.S(09MBI107) Raj kamal.R(09MBI111)