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The major forces that shape the
supply chain management
environment can be analysed using
the PEST analysis
The PEST analysis looks at the
Political, Economic, Social &
Technological factors that
influence strategic decisions
ITC

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2-2

Action Point

7
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2-3

There is a growing need for companies
to comply to environmentally sensitive
business conducts, for example:
 Recyclable/biodegradable packaging
 Reduced energy consumption in
transportation
 Establishment of channels for returning
work out products for recycling
ITC

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Some advantages of a green supply
chain include:

 Resource savings
Waste elimination
Productivity improvement
Efficiency enhancement
Development of a source of competitive
advantage
 Cost savings through resource savings





ITC

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3-1

Saving the environment
What requirements are put on you as an organisation to operate an
environmentally friendly business? Are there any requirements which you
impose on yourself as a company?
Evaluate the environmental requirements that you face
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3-3

Vast opportunities for expansion &
development can be now explored thanks
to new accessible markets & changes in
technology!
Barriers to consider include:
 Need for expansive local knowledge to
market products & services successfully

ITC

 Increased pressure on global
infrastructure & channels of
transportation

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3-5

 Thanks to Technology developments in
communications, organisations can now approach
their customers by broader means, including direct
sales
 But intermediaries, such as internet providers,
have also been created & might need to be
attended to
 An essential feature of technology systems
becomes interoperability = the ability of different
computer systems to communicate with each other
without requiring the same platform
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3-6

Action Point

7
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g
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How would you
rate their overall level of service? What problems have you had with the
service (both past and present)?
How do the problems you identified above affect your relationship with
other members of your supply chain? Is it worth you changing from one
technological intermediary to another or not?
Discuss the answers to the above questions with other members in your
group
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3-7

A recent study predicted the following major trends:
 Continued & growing use of e-commerce
 Global competitive pressures & cost competition
 Detailed examination of performance

Other trends include:
 Increased linkages between supply chain & business
strategy
 Development of the Internet & communications
 Limited resources & need for global reach and flexibility
 Increase in global supplier development

ITC

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4-2

There are several ways of enhancing the
agility of the supply chain:
 Provide data on changes
 Develop collaborative relationships
 Design products that share common parts
& processes
 Keep small inventories
 Build dependable logistics systems
 Develop a team to implement contingency
plans
ITC

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4-4

One way of creating alignment in the supply chain is to
share risks, costs & rewards amongst supply
chain members
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4-5

Action Point

7
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4-6



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