Presented by: Muhammad Abdullah butt

Roll no: IEM-20-32

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 Abstract

In this report the role of stakeholder in supply chain is defined. The types of
stakeholders and supply chain. Working of supply chains and the stakeholders. How Internal
and external stakeholders are used in supply chain and how they are used to grow the
company size and sales. How the stakeholders interact with the business i.e. primary and
secondary stakeholders. Vertical and horizontal integration of the supply chains to expand the
flow of the products and to gain the market and increase its economy.

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Table of Contents
Introduction..............................................................................3

Stakeholder...............................................................................4

What is supply chain................................................................5

Types of supply chain..........................................................5

Stakeholders and supply chain.............................................6

Supply chain of a manufacturing company..........................8

Impact of internal and external stakeholder on a supply

chain.....................................................................................9

Impact of internal stakeholder..........................................9

Vertical and horizontal integration of supply chain.......12

Conclusion:............................................................................15

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Introduction
The stakeholders in a supply chain play an important role in the market to gain the
market. They perform the activities that make a supply chain work and provide a reason for it
to occur. Some participants are producers; some are providers or wholesalers; while others
are sellers. And some participants are consumers or customers. Supply chain management
plays an important role to guarantee that the firm is effectual and effective to do its task, if
there is no customer, there will be no business, the firm or organization is always keen to
capture market so they want to maximize the availability of product or services for this the
third world countries do some unhealthy activities to environment, social, economic fields.
They have to accept some values so that they will produce and manage their supply chain and
encounter client needs or demands more efficiently. The stakeholder effects supply chain
organization very effectively and they put pressure on firms to meet standards for
environmental, social, economic reasons. Supply chain management plays an important role
to ensure that the firm is efficient and effective to do its tasks if there is no customer, there
will be no business the firm or organization is always acute to capture market so they want to
exploit the availability of product or services for this the third world countries do some
unhealthy activities to environment, social, economic fields. They have to adopt some ideals
so that they will produce and manage their supply chain and meet customer needs or demands
more effectively. The stakeholder effects supply chain management very effectively and they
put pressure on firms to meet standards for environmental, social, economic purposes.

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 Role of stakeholder in supply chain
What is a stakeholder?

Stakeholder
Stakeholder are a group of individuals who have impact of the decisions and actions of a
business, and who Have an interest in the things a business does.
Types of stakeholder
1. Internal stakeholder 2. External stakeholder
Internal stakeholder includes
a. Owners
b. Managers
c. Employees
External stakeholder includes
a. Customers
b. Suppliers
c. Government
d. Unions
e. Investors

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What is supply chain
A network used to deliver products, supplies and services from raw materials to end
customers through a planned flow of information distribution and cash. Supply chain linkage
refers to planning and implementing a combined business process and operating in supply
chain through information technology. Many firms focus on achieving significant and modest
advantage by constructing and managing the supply chain process and operations.

A supply chain consists of

Supplier Producer/
Manufacturer

Customer

So, a supplier provides raw material, components and services etc.

A producer or manufacturer uses raw material and components to produce goods and other
different objects.

Customer is that person who buys the goods and gets the services from the producer.

Types of supply chain

1. Continuous supply flow model
2. Fast supply flow model
3. Efficient chain models

Continuous supply model

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 The continuous flow model for supply offers reliability in high demand situations that
vary very little. Manufactures that yield the same goods frequently with very little
fluctuation can benefit from the continuous flow model. It is ideal for product
manufacturing and is one of the most traditional supply chain models.

Fast supply model

The fast chain model is ideal for manufacturers that manufactures products that are
fashionable with hasty life cycles. It works well with a business that must change their
products regularly and that needs to get them out fast before the drift end. It is a stretchy
model.

Efficient supply chain

Efficient supply chain includes the fast supply chain and the continuous supply chain.
Two of these models put productivity first and are geared toward certain industries like
paper, cement, facility producing industries and even economical fashion industries.

Stakeholders and supply chain

The supply chain management is partial by different stakeholders that maybe considered
as the “consumers” of businesses. Therefore, it is important to
identify both primary and secondary stakeholders.

A supplier is an external stakeholder which can affect the business manufacturer and the
customers. Cause if the supplier is not providing good raw materials or supplying the raw
materials not on the right time it can affect the sales of the business.
Every stakeholder has a role in a supply chain.
1. Primary stakeholders 2. Secondary stakeholders
In these supply chain these both types of stakeholders have major role in keep running the
business. The primary stakeholders are those who have a direct interest in the company,
the primary stakeholders in a business are its investors, employees, customers and
suppliers.
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The secondary stakeholders are those who have an indirect interest in the company, these
stakeholders do not engage in direct economical exchange with the business. The
secondary stakeholders are communities, activist groups, business support group and
media.

In the Halal industry supply chain situation, some of the stakeholders are also business
establishments with their own goals, regardless of their positions (they might be suppliers,
ploughs, logistics providers, etc.). As a business unit, the main objective of a Halal firm is
also the same as other businesses i.e. to maximize profit. However, Halal firms at the
same time have a very heavy responsibility towards the Muslim community or
consumers, i.e. to prevent them from consuming non-Halal food. The government, on the
other hand, as the front-runner of the country, is responsible for the inhabitant’s relief. In

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 the process of executing an efficient detectable system along the supply chain, it is very
important for the industry to examine and identify all the stakeholders and their roles and
tasks.
Food supply-demand will continue to increase along with the increase in the world
population which is predicted to reach 9.7 billion in 2050. It becomes an opportunity for
emerging countries that employ the agricultural sector as the economic basis. In the case
of Cocoa, the world cocoa required in 2020 is predicted to reach 4.2 million tons with an
typical increase of 3 percent every year. According to the World Cocoa Foundation
(WCF), cocoa, as one of the important agricultural merchandises, is the source of income
for 50 million people worldwide, including cocoa farmers, the number of whom is 5-6
million farmers. A number of cocoa exporting countries in Africa, i.e. Ivory Coast,
Ghana, Ecuador, Cameron and the Dominican Republic, contribute 84 percent of world
cocoa exports, particularly to Europe
For example
Suppose there is a cake manufacturer (stakeholder), who produces different types of cakes.
And there is a supplier (stakeholder), who provides raw material and basic substances to
make a cake. When the cakes are ready, they are sold to the customers (stakeholder).
Now in this manufacturing of cakes, almost everyone involved in the process from delivering
of raw materials to the production and then selling of those cakes is a stakeholder.
The production is basically based on the decision of a stakeholder, customer, that is an
external and a primary stakeholder.
Every business owner has to give importance to the other stakeholders to make the business
grow and establish. Suppose if the cake manufacturer bakery just keeps on making cakes of
their choice and not giving importance to the customer (stakeholder) then the business is not
going to establish.

In every business where you have to depend on different stakeholders then you have to give
importance to them and so them their worth that they matter in every decision you make

Supply chain of a manufacturing company

Raw materials Manufacturing Customer

Wholesalers/
suppliers Plant s
distributor

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Primary product flow from left side and cash flow from the right side of the chain.

Stakeholders in supply chain management

Stakeholders in supply chain are a comprehensive more completed group from the suppliers
of materials and services, through to delivery and logistics and customers and consumers.
The principles of government and local bodies and the actions of participants also make them
connected stakeholders in this process.

The actions or delays of one group in the chain can disturb all the stakeholders in the chain.

Impact of internal and external stakeholder on a supply chain

Impact of internal stakeholder:

 A strong linkage with three stakeholders enhances overall supply chain performance.

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 A strong linkage with three stakeholders enhances supply chain performance in cost-
containment.
 A strong linkage with three stakeholders enhances supply chain performance in
performance reliability.
 A strong customer linkage enhances supply chain performance in cost-containment.
 A strong supplier linkage enhances supply chain performance in cost-containment.
 A strong internal linkage enhances supply chain performance in cost-containment.
 A strong customer linkage enhances supply chain performance in performance
reliability.
 A strong supplier linkage enhances supply chain performance in performance
reliability
 A strong internal linkage enhances supply chain performance in performance
reliability.

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Impact of external stakeholders

External stakeholders include government, societies, activist and financial providers. The
government has to collect payment of taxes, helping the business to grow and creating
jobs.

Compliance with business legislation.

The government provides facilities to the company so that more production takes place
and more tax is collected from that company.

Tax off zones, supply of electricity on low cost, supporting industrial zones that’s how
they interact with the companies and are external stakeholders.

They help the companies to produce more goods, so that companies grow largely and the
companies can create more job opportunities.

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Vertical and horizontal integration of supply chain
Vertical integration

This type of supply chain is owned by that company, each member of supply chain produces
a different product or market specific service and the products combine to satisfy a common
need of the people. That company which has its own supply chain expands by adding
departments and layers of management.

“A self-sufficient enterprise”

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A company has its own suppliers (stakeholders) of raw materials, own manufacturing plants
(stakeholders) and own distribution plants and utilities. In this type all the stakeholders are
involved throughout the supply chain. In vertical integration all the stakeholders are
controlled because they are owned by one person. The supply chain doesn’t have to rely on
other stakeholders like suppliers and manufactures. The flow of information flows throughout
the supply chain and so the whole supply chain is synchronized with other functions.

 Strengthen its supply chain

 Reduce production costs
 Capture upstream and downstream profits

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Horizontal integration

An expanding of a business by acquiring a similar company in the same industry it is

contrasted with vertical integration where company produces different items which are
related to one product the company may do this via internal expansion acquisition. If a
company captures the vast majority of the market for the market for that good or service, it
will become monopoly.

In horizontal integration the company focus on single product but the raw materials and
suppliers are not from the company, they rely on different stakeholders. They focus on a
single product and know their markets well.

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  Increase its size
 Diversify its products
 Achieve economies of scale
 Reduce competition
 Gain access to new customers of the same markets.

Conclusion:
Focal firms exposed to a range of environmental and social worries are trying to address both
the informational needs and performance outlooks of multiple stakeholder groups. To bring
into line and influence responsibility to stakeholders, a combination of the accounting and
literatures indicate that monitoring systems must recognized as more complex and assorted
workable assessment and verification systems, with multiple processes and amounts. On one
hand, systems can combine the activities of data assortment and processing, with verification
of the materiality, dependability, accuracy, wholeness and responsiveness of any data and
resulting information. On the other hand, such processes can differ in terms of the degree to
which various stakeholder groups are betrothed, the range of environmental and social issues
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evaluated, the extent of the supply chain network captured, and the extent of appropriate
information finally reported to all stakeholders. Notably, it is not only the absolute level that
matters, but also the arrangement of the firm’s answerability, as supposed by key
stakeholders, with their expectations. These extents tend to be driven by firm capabilities,
stakeholder prominent and supply chain integration. While further empirical research is
greatly needed, the model of proposed here provides a clearer conceptual foundation for
building specific actions, understanding complex relationships, and participating additional
theory.

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References for report writing

1-s2.0-S2351978917303864-main.pdf

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83021998.pdf

https://www.youtube.com/watch?v=lZPO5RclZEo

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