Solution
As defined by Qalati, et al. (2020), the external factors have a direct impact on sustainable supply chain. Through an analysis of external factors, the trends and strategies, growth opportunities are evident. The importance of the tool analysis include PESTLE analysis (Christodoulou & Cullinane, 2019) and the Porter’s 5 Forces (Birru et al., 2022).
2.1 Porter’s 5 Forces Analysis
In line with Juliana and Nyoman (2019), the tool is used for evaluating different factors which impact a supply chain. In particular, Wood Plc spend category, the technique is used to identify the capacity for leveraging on competitive advantage. The IT system Porter’s 5 Forces Analysis in their supply chain is illustrated in figure 2;
Figure 2:Wood Plc Summary of Porter’s 5 Forces
For figure 2 summary focusing on Porter’s 5 Forces Analysis, it highlight their competitive nature influencing supply chain. A case example is the supply chain tiers directly influencing how Woodplc modernise their operations and particularly supply chain relations, reduced costs of switching and economic downturn impacting demand for oil and gas. In order for tier supply chain to be successful, WoodPlc need to pursue an elaborate practice where all suppliers relations are identified, productivity increased ease of application, sharing IT systems amongst different suppliers.
For the suppliers power, positioned as a medium level, WoodPlc has a team involved in evaluating the IT systems quality. The OEMs influence how the supply chain aspects are merged. Owing to high threat of new entrants, a benchmark with different organisation supply chains influence organisation operations. For example, due to COVID-19 pandemic and economic downturn, this has lead to elimination of complex integration.
2.2 STEEPLED Tool Analysis
By use of STEEPLED Analysis (CIPS, 2023), it is possible to pursue a strategic plan approach in different business practices. This is for discovering, evaluating, organising and tracking the entire external risks. The tool focus on Social, Technological, Economic, Environments, Political, Laws, Ethical and demography (See table 1);
Table 1:STEEPLED For WoodPlc Summary
| STEEPLED Analysis Factors | Explanation |
| Social | · There prevail immense changes in clients preferences of the WoodPlc
· An increased need to work flexibly and WoodPlc improving their contracting process increase their operations success |
| Technological | · Substantial growth of technologies and their KSA growth significantly
· Immense management of the applied data being applied |
| Economic | · Economic challenges influencing the entities performance being the most appropriate strategy
· The demand for contracting services is holistic due to the significant economic demand by organisations |
| Environmental | · Saudi Arabia Green Policy informing the procurement relations of WoodPlc operations
· Corporate Social Responsibility (CSR) approaches |
| Political | · Saudi Arabia neighbours in various political conflicts impacting WoodPlc operations |
| Legal | · WoodPlc contracting process guided by various suppliers relationships
· Business led approaches |
| Ethics | · Ethics being in place by ensuring there is no corruption or inappropriate practice |
| Demographics | · An increased in young population in the country impacting the need for IT systems used in these organisation |
In line with table 1, WoodPlc supply chain need to ensure they put their priority to accommodate their clients preference and to embrace on culture diversity in place. The supply chain need to succeed with technology and information systems put in place. According to CIPS (2023), post-COVID-19 economic change has elicited positive implication on technologies needs and investing on supply chain. On the other hand, accessing the IT systems in supply chain from OEMs and focus issues impact on supply chain and ethics to impact confidentiality of the approach and equality embraced. For WoodPlc supply chain, prioritising on management of the identified ethical issues through IT systems integration for equality of the entire process.
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