QUESTION 01:

ANSWER: Environmental factors which can be monitored to help decision-makers are as

follows:

 Internal environment
 External environment
Internal environment:
These are the factors that are bounded within the organization internally. These can be in the
form of surroundings or forces. Elements of internal factors are as follows:

1. Owners and Shareholders.

2. Board of Directors.
3. Employees.
4. Organizational Culture.
5. Resources of the Organization.
6. Organization’s image/goodwill.
These are factors that affect the organization internally and help the decision-makers to take a
decision so as to maximize their profit. The internal environment has several elements that help
decision-makers how and when to enter the market these are: financial resources, technological
resources, human resources, physical resources, etc. With the help of these resources, any firm or
any organization can deliver value to their customers.

External Environment: These are factors that affect the organization externally and help the
decision-makers to take a decision so as to maximize their profit. It includes all types of general
environment which affect the organization externally. So any individual cannot control the
business operations alone due to general environmental factors. Managers of the organization
keep an eye on the emerging opportunities and threats in order to enter in the market so as to
maximize their profit. The external environment has the following elements:

1. Political factors.
2. Economic factors.
3. Sociocultural factors.
4. Economical factors.
5. Legal factors.
6. (Natural) Environmental factors.
The above is also known as PESTLE. These are some elements of the external environment
factors which influence the activities of an organization. In order to enter the markets, the
manager of the organization has a clear understanding of the internal and external environment
because he/she is the decision maker which can affect the organization's growth and
development. If the manager is unable to understand the elements of the market and the
environment of an organization that they will definitely make the loss and as a result, the
organization will not develop especially in this fast forward-moving organization environment.
QUESTION 02:
Answer 02:
In any organisation producing goods, they have to transport their products to customers. So we
use many methods.

Transportation is the movement of goods that are raw or finished,people and animal from one
place to another using mode of transport such as road, air,rail, water, cable and space.
Transportation involves the management of people, infrastructure, logistics, and vehicles.

NESTLE company is focused on establishing the most sustainable modes of transport that
reduces the gas emissions. NESTLE is shifting from long distance transportation through roads,
into using sea and railways where possible. NESTLE water relies on rail network for efficient
transportation of its products over long distances. They maximum try to reduce gas emission
problems.

QUESTIONS 03:

ANSWER 03:
Supply Chain is that the management of flows. There ar 5 major flows in any provide chain : product
flow, monetary flow, info flow, price flow & risk flow.

The product flow includes the movement of products from a provider to a client, further as any client
returns or service desires. The monetary flow consists of credit terms, payment schedules, and
consignment and title possession arrangements. the data flow involves product reality sheet,
sending orders, schedules, and change the standing of delivery.

THE PRODUCT FLOW :

Product Flow includes movement of products from provider to client (internal further as external),
further as managing client service desires like input materials or consumables or services like work.
Product flow conjointly involves returns / rejections (Reverse Flow).

In a typical business scenario, there'll a provider, manufacturer, distributor, wholesaler, distributor

and client. the patron could even be an inside client within the same organisation. as an example in
an exceedingly fabrication search several sorts of raw steel ar made-up into totally different building
elements in cutting, general machining, attachment centres then ar assembled to order on a flatbed
for cargo to a client. Flow in such plant is from one method / assembly section to the opposite having
relationship as a provider and client (internal). Acquisition is happening at every stage from the
previous stage on the whole flow within the provide chain.

In the provide chain the products and services typically flow downstream (forward) from the supply
or purpose of origin to client or purpose of consumption. there's conjointly a backward (or upstream)
flow of materials, principally related to product returns.

The monetary and economic facet of provide chain management (SCM) shall be thought-about from
2 views. First, from the price and investment perspective and second facet supported from flow of
funds. prices and investments add on as moving forward within the provide chain. The optimisation
of total provide chain value, therefore, contributes directly (and usually terribly significantly) to overall
gain. Similarly, optimisation of provide chain investment contributes to the improvement of come
back on the capital utilized in an exceedingly company. in an exceedingly provide chain, from the
final word client of the merchandise backtrack through the chain there'll be flow of funds. monetary
funds (Revenues) flow from the final client, WHO is sometimes the sole supply of “real” cash in a
provide chain, back through the opposite links in the chain (typically retailers, distributors,
processors and suppliers).

In any organization, the availability chain has each Accounts owed (A/P) and assets (A/R) activities
and includes payment schedules, credit, and extra monetary arrangements – and funds flow in
opposite directions: assets (funds inflow) and liabilities (funds outflow). The capital cycle conjointly
provides a helpful illustration of economic flows in an exceedingly provide chain. nice opportunities
and challenges thus lie ahead in managing monetary flows in provide chains. The integrated
management of this flow may be a key SCM activity, and one that incorporates a direct impact on
the income position and gain of the corporate.

THE INFORMATION FLOW :

Supply chain management involves a good deal of various information–bills of materials, product
information, descriptions and rating, inventory levels, client and order info, delivery planning,
provider and distributor info, delivery standing, industrial documents, title of products, current income
and monetary info etc.–and it will need heaps of communication and coordination with suppliers,
transportation vendors, subcontractors and different parties. info flows within the provide chain ar
duplex. quicker and higher info flow enhances provide Chain effectiveness and data Technology (IT)
greatly reworked the performance.

THE VALUE FLOW:

A offer chain features a series price|useful|valuable|important |of import} making processes spanning
over entire chain so as to produce additional value to the top shopper. At every stage there square
measure physical flows concerning production, distribution; whereas at every stage, there's some
addition valuable to the merchandise or services. Even at merchant stage tho' the merchandise
doesn’t get remodeled or altered, he's providing worth additional services like creating the
merchandise on the market at convenient place in tiny heaps.

These are often stated as worth chains as a result of because the product moves from one purpose
to a different, it gains worth. a price chain may be a series of interconnected activities that square
measure needed to bring a product or service from conception, through the various phases of
production (involving a mixture of physical transformation and also the input of varied product
services), delivery to final customers, and final disposal once use. that's offer chain is closely
interlocking with worth chain. so worth chain and provide chain square measure complimenting and
supplementing one another. In follow offer chain with worth flow square measure a lot of advanced
involving over one chain and these channels are often over one originating offer purpose and final
purpose of consumption.

In chain at every such activity there square measure prices, revenues, and plus values square
measure appointed. Either through dominant / regulation price drivers higher than before or higher
than competitors or by reconfiguring the worth chain, property competitive advantage is achieved.

THE FLOW OF RISK :

Risks in offer chain square measure because of numerous unsure components generally coated
underneath demand, supply, price, lead time, etc. offer chain risk may be a potential incidence of a
happening or failure to seize opportunities of provision the client during which its outcomes end in
loss for the entire offer chain. Risks so will seem as any reasonably disruptions, worth volatility, and
poor perceived quality of the merchandise or service, method / internal quality failures, deficiency of
physical infrastructure, natural disaster or any event damaging the name of the firm. Risk factors
additionally embody income constraints, inventory finance and delayed money payment. Risks are
often external or internal and move either means with product or monetary or data or worth flow.

External risks are often driven by events either upstream or downstream within the offer chain:
Demand risks – associated with unpredictable or misunderstood client or end-customer demand.
Supply risks – associated with any disturbances to the flow of product inside your offer chain.
Environment risks – that originate from shocks outside the provision chain.
Business risks – associated with factors like suppliers’ monetary or management stability.
Physical risks – associated with the condition of a supplier’s physical facilities.
Internal risks square measure driven by events inside company control:

Manufacturing risks – caused by disruptions of internal operations or processes.

Business risks – caused by changes in key personnel, management, reportage structures, or
business processes.
Planning and management risks – caused by inadequate assessment and coming up with, and
ineffective management.
Mitigation and contingency risks – caused by not setting up place contingencies.

INTEGRATION OF FLOWS IN offer CHAIN :

Supply chain management integrates key business processes from user through original suppliers,
manufacturer, trading, and third-party provision partners in a very offer chain. Integration may be a
vital success consider a dynamic market setting and is requirement for enhancing worth within the
system and for effective performance of the provision chain by sharing and utilization of resources,
assets, facilities, processes; sharing of knowledge, knowledge, systems between totally different
tiers within the chain and is significant for the success of every chain in rising lead-times, method
execution efficiencies and prices, quality of the method, inventory prices, and knowledge transfer in
a very offer chain. Integration results in higher collaboration for synchronous production
programming, cooperative development, cooperative demand and supplying coming up with.
additionally with multiplied data visibility and relevant operational information and knowledge
exchange, integrated offer chain partners are often a lot of awake to volatile demand ensuing from
frequent changes in competition, technology, laws etc. (capacity for flexibility). Integration is needed
not just for economic advantages however additionally for compliances in terms of social and
community, diversity, setting, ethics, monetary responsibility, human rights, safety, structure policies,
business code of conduct, numerous national / international laws, laws, standards and problems.

To achieve superior offer chain performance (cost, quality, flexibility and time performance) need
multi-lateral integration : Internal / External integration; useful integration, Geographical integration;
Integration enchained and networks; and Integration through IT. the mixing even goes on the far side
to incorporate provider’s supplier and client’s customer to leverage the ability of the “network,” on the
far side their own.

The 5 basic parts of offer chain management square measure mentioned below −
Plan
The initial stage of the availability chain method is that the drafting board. we'd like to develop an
inspiration or strategy so as to deal with however the merchandise and services can satisfy the
stress and wants of the shoppers. during this stage, the look ought to chiefly specialize in coming up
with a technique that yields most profit.
For managing all the resources needed for coming up with merchandise and providing services, a
technique needs to be designed by the businesses. offer chain management chiefly focuses on
designing and developing a collection of metrics.

Develop(Source)
After designing, ensuing step involves developing or sourcing. during this stage, we tend to chiefly
focus on building a powerful relationship with suppliers of the raw materials needed for production.
This involves not solely characteristic dependable suppliers however additionally crucial completely
different designing ways for shipping, delivery, and payment of the merchandise.
Companies have to be compelled to choose suppliers to deliver the things and services they need to
develop their product. therefore during this stage, the availability chain managers have to be
compelled to construct a collection of evaluation, delivery and payment processes with suppliers and
additionally produce the metrics for dominant and up the relationships.

Finally, the availability chain managers will mix of these processes for handling their product and
services inventory. This handling contains receiving and examining shipments, transferring them to
the producing facilities and authorizing provider payments.

Make
The third step within the offer chain management method is that the producing or creating of
merchandise that were demanded by the client. during this stage, the merchandise square measure
designed, produced, tested, packaged, and synchronous for delivery.
Here, the task of the availability chain manager is to schedule all the activities needed for producing,
testing, packaging and preparation for delivery. This stage is taken into account because the most
metric-intensive unit of the availability chain, wherever corporations will gauge the standard levels,
production output and employee productivity.
Deliver
The fourth stage is that the delivery stage. Here the merchandise square measure delivered to the
client at the destined location by the provider. This stage is essentially the supplying part, wherever
client orders square measure accepted and delivery of the products is planned. The delivery stage is
commonly referred as supplying, wherever corporations collaborate for the receipt of orders from
customers, establish a network of warehouses, choose carriers to deliver merchandise to customers
ANd created an invoicing system to receive payments.
Return
The last and conclusion of offer chain management is referred because the come. within the stage,
defective or broken product square measure came back to the provider by the client. Here, the
businesses have to be compelled to wear down client queries and answer their complaints etc.
This stage usually tends to be a problematic section of the availability chain for several firms. The
planners of offer chain have to be compelled to discover a responsive and versatile network for
acceptive broken, defective and additional merchandise back from their customers and facilitating
the come method for purchasers United Nations agency have problems with delivered merchandise.

Types
There square measure 3 differing kinds of flow in offer chain management −
Material flow
Information/Data flow
Money flow
Material Flow
Material flow includes a sleek flow of AN item from the producer to the patron. this can be potential
through numerous warehouses among distributors, dealers and retailers.
The main challenge we tend to face is in guaranteeing that the fabric flows as inventory quickly with
none stoppage through completely different points within the chain. The faster it moves, the higher
it's for the enterprise, because it minimizes the money cycle.

The item also can be due the patron to the producer for any reasonably repairs, or exchange for AN
finish of life material. Finally, completed product be due customers to their shoppers through
completely different agencies. A method referred to as 3PL is in situ during this state of affairs.
there's additionally an inside flow at intervals the client company.

Information Flow
Information/data flow contains the request for quotation, order, monthly schedules, engineering
modification requests, quality complaints and reports on provider performance from client facet to
the provider.
From the producer’s facet to the consumer’s facet, the knowledge flow consists of the presentation
of the corporate, offer, confirmation of order, reports on action taken on deviation, dispatch details,
report on inventory, invoices, etc.

For a booming offer chain, regular interaction is critical between the producer and also the client. In
several instances, we will see that alternative partners like distributors, dealers, retailers, supply
service suppliers participate within the data network.

In addition to the present, many departments at the producer and client facet also are a
neighborhood of the knowledge loop. Here we'd like to notice that the interior data flow with the client
for in-house manufacture is completely different.

Money Flow
On the premise of the invoice raised by the producer, the shoppers examine the order for
correctness. If the claims square measure correct, cash flows from the shoppers to the individual
producer. Flow of cash is additionally determined from the producer facet to the shoppers within the
variety of debit notes.
In short, to realize AN economical and effective offer chain, it's essential to manage all 3 flows
properly with marginal efforts. it's a troublesome task for a offer chain manager to spot that data is
essential for decision-making. Therefore, he or she would favor to possess the visibility of all flows
on the clicking of a button.