The supply chain industry is ever evolving and growing in complexity. As supply chains span the globe, industry managers and executives have to take more factors into consideration than ever before. There are five primary forces that drive supply chains to adapt and evolve: social changes, technology, the environment, economics and politics. These five drivers of change can be simplified by the acronym, STEEP.
A STEEP analysis is not uncommon in many industries and sometimes includes other aspects, such as legal ramifications, demographics and geography. It is meant to serve as a tool for external analysis when conducting market research or formulating a business strategy. For the purpose of this content series, we will focus primarily on the previously mentioned STEEP model and how it affects the supply chain field.
In order to function with efficiency and effectiveness, organizations have to modify their supply chains to address all five change drivers, understanding the ways in which they overlap and affect the health of an entire business.
Through this content series, we will define each element of STEEP and provide real-world scenarios in which supply chains and the companies that operate them have been affected by these factors.
To read the first part of this series, click here.
