5 key drivers of supply chain compliance and why？
The key drivers of supply chain management that determine the overall competitiveness and responsiveness of the organization relate to inventory, transportation, facilities and information. The complete supply chain is made up of many channel partners and many processes. Supply chain management encompasses several activities and partners. The forces which are responsible for making the supply chain effective are legislation, environmental, pricing, customer and social.
Legislation is the most important drivers of supply chain; a firm should follow the legislation, or exit the market.
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It is expected that more socially responsible firms may have systems in place to take into account environmental sustainability. Customers are demanding products consistently delivered faster and more reliably, which requires close coordination within the firm and with suppliers. Also, organizations sustained partially or completely by the government are generally expected to adhere to environmental concerns.
In an ideal situation there should be sufficient incentive for a business to take due care of environmental issues and there should be no need for externally imposed pressure, by legislation or by customer.
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