Tony Hines discusses how political, economic, social and technological change influences supply chain strategies (PEST).
The external environment influences the strategies we implement. Political change such as wars, policies towards pandemics and trade such as Brexit in the UK or Trade Wars with China in the US all come under the political influences. What happens in the political sphere impacts strategies we are able to design for our supply chains. Economic policies also impact or impair our ability to act as we would like. For example, changes to taxes, exchange rates or trade regulations. Social change will affect so many aspects of what we do in supply chains. It may change buying behaviors for customers and it will determine what suppliers decide to do too. The final part of the equation focuses on technologies available at the time. The example in the episode discusses bar codes and RFID tags. We now have many ways in which we can have supply chain visibility.
#industry4 # internet of things #sensors #visibility #customerfocus