What Is Supply Chain Mapping? Why Supply Chain Mapping Is Important

What Is Supply Chain Mapping? Why Supply Chain Mapping Is Important

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Many small businesses worldwide are not ready for disruptions to their supply chain. Yet, at the same time, over 70% of all companies are somehow involved in the global supply chain.

Supply Chain mapping is documenting information across your company’s stakeholders. It is about looking at all the stakeholders and also the function of each of these in your supply chain. To do a supply chain mapping, there are five steps you should consider.

Table of Contents

What Exactly Is Supply Chain Mapping?

Supply Chain Mapping (SCM) is the process of being able to document information across companies, suppliers, and all the individuals who are involved in your company’s supply chain. Supply Chain Mapping aims to create a global map of your supply chain network.

An example of supply chain mapping is for you to map out all the sources and materials used in your supply chain process. This is important for a company to mitigate the risks of its global supply chain.

Why Is Supply Chain Mapping Important?

Supply Chain Mapping is essential as it allows you to put Supply Chain strategies in place. By mapping out your supply chain, you can better face shortages and disruption in your supply chain as you have already looked at areas that may be a potential risk.

With Supply Chain Mapping, you can look at issues as if an order gets lost in the system, there is a surge in demand, or there is some shortage or other problems.

One of the critical elements of Supply Chain mapping is that you will be able to have a deeper understanding of costs, timeframes, risks, and other issues. Understanding your supply chain should help you to have an advantage over your competition, who may lack or not have this essential knowledge.

Everyone’s supply chain has two kinds of principal components.

  • Stakeholder – The Stakeholder is those people you rely upon to help you with your products or services. They are also those who may help you to sell your products or services. They allow you source, process, pack, and ship materials. They include manufacturers, vendors, warehouses, transportation companies, distribution centers, wholesalers, retailers, and customers.
  • Functions – The functions in the supply chain are what connect all your stakeholders. They help connect you to your supplier, manufacturer, or transportation company. For example, it could be through your sales and finance channels. You can be connected to your customers through retail stores or the internet.

The Benefits Of Supply Chain Mapping

There are many proven benefits to supply chain mapping, and it has been shown that companies that map out their supply chain may have some advantages over their competitors.

Here are some things you can identify for your Supply Chain Mapping:

  • Identify Where Your Supply Chain Value Is Added Or Lost – You should look to see where your supply chain value s added or lost. Things as ongoing quality issues, slow production, or other bottlenecks such as shipment details or slow shipping times.
  • Mitigate The Risk – Look at how you can mitigate the risk. How are you and your brand affected by the slowdown of production?
  • Strengthen Your Supply Chain – As you look at the entire supply chain, you can look at areas you can work to strengthen your supply chain. Do you need to have more transparent communication between all parties? Do you need to work on your relationships with stakeholders and be clear on your expectations and goals?
  • Streamline Or Speed Up Processes – Analyse the connection between all stakeholders and see what you can do to help to streamline or speed up any processes. Are there bottlenecks in how things are being done? Can you use technology more efficiently?
  • Look At Elements That Affect Cashflow And Costs – Look at what elements most affect cash flow and costs. Do you have someone who always pays you late? Where is your cash flow at the most risk?

5 Easy Steps To Mapping Your Supply Chain

There are five easy steps that you can take to map out your supply chain. The supply chain mapping helps to give you a visual representation of your supply chain and the stakeholders and functions that exist around your business.

1. – Identify All Your Supply Chain Stakeholders

Identify all the stakeholders contributing to your product or service’s production, storage, and distribution. Are you using the most effective communication process for all the stakeholders? Do you have the right stakeholders doing the proper functions?

2. – Understand Your Supplier Relationship

How are all your supplier relationships are they secure and intact? Do you need to improve them? Do you need to have a backup plan for some suppliers and vendors? Are you getting products and services at the quality, quantity, and price you need?

3. – Establish Your Supply Chain Costs And Timings

Work out your cost and timings for each part of the supply chain. Look for bottlenecks in prices and delivery. Are there areas you can improve and do better? Are you losing customers because of any costs or delivery issues?

4. – Acknowledge Your Supply Chain Risks

Look at all the risks within the supply china. The risks can include all issues as political, economic, and environmental, including government regulations or tariffs can also be a risk.

Look for both your seen and unseen risks within the entire supply chain.

5. – Look At Your Supply Chain Data Tracking

Look at all your flow of information going through the supply chain. How efficient is the data? How are you to control and capitalize on the flow of information? Do you have data and systems for all aspects of your supply chain?

The supply chain mapping is essential for any company that is part of the global supply chain. It can help you mitigate risks and see areas you need to improve. Also, it can help you have a more efficient and effective supply chain.

Frequently Asked Questions

What is supply chain mapping?

Supply chain mapping is the process of visually representing and documenting the various components and activities of a supply chain, from raw material suppliers to end customers.

Why is supply chain mapping important?

It helps organizations gain a comprehensive understanding of their supply chain, facilitating better decision-making, risk management, and optimization of processes.

What are the key benefits of supply chain mapping?

Benefits include improved transparency, identifying vulnerabilities, cost reduction opportunities, and enhancing overall supply chain resilience.

What challenges can arise during the supply chain mapping process?

Challenges may include data accuracy, supplier cooperation, and the complexity of global supply chains.

Is supply chain mapping an ongoing process?

Yes, it should be a continuous process as supply chains evolve. Regular updates are crucial to maintaining accuracy and adaptability to changing market conditions.

If you are interested in seeing how Mondoro can help you with your strategic sourcing and be part of your global supply chain – we would love to talk to you about how we can help you.

Find out more about how Mondoro can help you create, develop, and manufacture excellent home decor and home furniture products – don’t hesitate to contact meAnitaCheck out my email by clicking here or become a part of our community and join our newsletter by clicking here.

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Supply Chain Management Results In Enhanced Customer Value

Proper management of the global supply chain helps to enhance the customer value and experience. The global supply chain is highly complex. Many parts and pieces must all work together to ensure the customer receives the desired product at the quality, quantity, and price they need. Global supply chain management’s role is to ensure the customer is pleased with their results.

You can discover more by reading Supply Chain Management Results In Enhanced Customer Value by clicking here.

How Do Information Systems Support The Supply Chain?

Information systems and the information we can obtain are critical in any supply chain; we must have and use accurate information to make correct decisions.

You can discover more by reading How Do Information Systems Support The Supply Chain? by clicking here.

What Is The Difference Between Supply Chain Management and Logistics?

Supply chain management is about the collaboration and partnerships to get the goods from raw material to the end consumer; it is about the partnerships and alliances within this process. Logistics is one part of supply chain management; logistics involves moving goods from one place to another.

To learn more about loading a dry shipping container, you can read our blog on What Is The Difference Between Supply Chain Management and Logistics? by clicking here.

Anita Hummel
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