As you’re exploring a new place, a map is a useful tool. It helps you to understand where you are, minimises your risk of getting lost and even helps you learn the ways to navigate the place in future.
As you’re trying to acquaint yourself better with your supply chain, you will need a supply chain process map. This map helps you to see the full view of where your products are coming from and how the various supply chain functions are being done. This, in turn, enables your e-commerce business to upgrade its risk management preparing for the future.
What is a Supply Chain Process Map?
Supply chain mapping refers to the process of gathering information of the key stakeholders and partners in your supply chain creating a comprehensive map of your supply network.
Such partners consist of your suppliers, their partners and suppliers and other service provides that you need for your supply chain.
Once you have all the data on each of the parties, you can make a “map” detailing where all the materials are sourced and you move the finished goods in your supply chain.
Why is Supply Chain Process Mapping Crucial?
Supply chain process mapping is like having a window into every step of your product’s journey. This clear view empowers your brand to:
- Stay compliant: Ensure your sourcing and operations meet all corporate, legal, and ethical regulations.
- Be disruption-proof: Respond swiftly to unexpected challenges like supplier shortages, demand spikes, or delays in transit.
- Proactively manage risk: Identify potential weak spots in your supply chain before they cause problems and take steps to address them.
With that let’s see some benefits of this supply chain map.
5 Benefits of Supply Chain Process Map
Supply chain mapping shines brightest in its ability to manage risk. By mapping your supply chain, you can uncover hidden threats that could disrupt operations or harm your reputation. This proactive approach is essential for building a sustainable supply chain, which in turn opens doors to ESG (Environmental, Social, and Governance) funding.
1.Enhance Visibility and Transparency
Supply chain mapping tools allow decision-makers to have all the details they need to know about the products. For instance, where and how these items are being manufactured. They have an easy representation of the visuals of the supply chain. So, they can easily identify the gaps and inefficiencies and make the necessary adjustments and improvements.
2.Make the Supply Chain Stronger
Build strong relationships with businesses in your supply chain and keep communication open. This helps them understand your goals and where they fit in your business.
3.Streamline Process
Mapping your supply chain helps analyze relationships between different entities. This can pinpoint reasons for delays and disruptions. For instance, you can identify suppliers who consistently meet deadlines versus those who often fall behind. One solution might be to increase orders from reliable suppliers while working with others to improve their speed.
4.Highlight Cash Flow Risks
Suppliers who have short payment terms along with the ones that pay late can adversely affect your business’s cash flow. This may cause supply chain disruptions. You need a supply chain mapping process that will highlight the moment your cash flow is at risk. This allows you to take precautions as needed.
5.Better Customer Satisfaction
Believe it or not, mapping the supply chain process map does affect your customer service. It helps you to improve supply chain efficiency, avoid risks and reduce costs. This means your customers will eventually get a more positive experience.
With better visibility into your supply chain, you can streamline the functions and also allow the orders to get processed, fulfilled and shipped to the customers without any problems. This makes your supply chain metrics stay updated and in good numbers, and elevates customer experience including lead time, OTIF rates, shipping costs and more.
But what is the supply chain mapping process? Find out below.
Process of Advanced Supply Chain Planning
Supply chain mapping is about a creative visual representation of the various players and processes in the entire journey. It also showcases how the involved parties interact with each other and businesses. So, the supply chain process map includes the following five stages:
1.Identifying Stakeholders
Identify and document all businesses and individuals involved in your product’s production, storage, and distribution. Remember, different products may have different supply chains.
2.Understand Supplier Relationships
Recognize the connections between all entities in the supply chain. Ask your first-tier vendors and suppliers to join the mapping process, and have them invite their suppliers too. Each entity should document what they buy and sell and to whom. This helps you see potential bottlenecks and risks that could disrupt the supply chain.
3.Establish Costs and Timeframes
Calculate the expenses and timeframes for different parts of the supply chain. This helps you identify which functions and processes bring the most value to your business.
4.Acknowledge Risks
Be aware of risks that threaten to disrupt the supply chain. These risks can include legal, economic, political, and environmental threats across various entities involved.
5.Track Data
Monitor the flow of data and information in your supply chain. Efficient data transfer, including orders, shipments, and returns, is as important as the physical movement of materials in controlling costs.
For businesses undergoing digital transformation, agility is important when it comes to adapting to rapid changes in technology. It’s essential to meet and exceed organizational expectations with a strong digital mindset and innovation. Businesses must be able to sense, learn, respond, and evolve like living organisms to achieve excellence.
With that let’s see some common challenges you may encounter in the mapping process. Worry not, we’ll also give you tips to overcome them.
Common Challenges in Supply Chain Process and How to Overcome Them
You may encounter various challenges while dealing with supply chain mapping. Here is a list of the most common problems:
1.Scattered Management and Soled Teams
Usually, supply chains are complex, involving multiple partners. Each of these partners has information regarding their respective teams and even their systems for storing managing and sharing that information.
So, you might not have easy access to the information you need for supply chain process maps. If you’re not able to get the information from the stakeholders regularly, then you can implement supply chain automation tools. They can automatically collect data from different teams. In this way, each party will have smooth access to the information they need, whenever they want.
2.Absence of Real-Time Supply Chain Operations Data
If you lack the latest updated information about your suppliers or supply chain operations, you cannot make informed decisions that would benefit your business. Therefore, e-commerce businesses that rely on manual systems and use outdated tools will not be able to map their supply chains.
What they need are the latest supply chain planning tools. Brands need real-time data on how different supply chain partners perform and inventory movement to keep the supply chain agile.
For most merchants, this means investing effort and time to digitise supply chain functions and records. They also need to leverage automation for collecting data in real-time providing access to relevant information.
FAQs: Supply Chain Process Map: Definition, Benefits and More
What is a supply chain process map example?
A supply chain process map could show steps like ordering materials, manufacturing, warehousing, and delivering to customers, all connected by arrows. For instance,
Order Materials -> Manufacture -> Warehouse -> Deliver to Customer
What are the common challenges faced in managing a supply chain?
This question addresses a broad concern many have about supply chain processes. It allows you to discuss common issues like inventory management, supplier relationships, and transportation delays, showcasing your understanding of the complexities involved.
How can technology improve supply chain efficiency?
This question taps into the growing interest in digital transformation within supply chains. You can use the answer to highlight the benefits of technologies like data analytics, automation, and cloud computing in optimizing processes and increasing visibility.
Conclusion
Just like a map helps you navigate a new place, a supply chain process map provides a clear view of your product’s journey. This empowers you to manage risks, improve efficiency, and ultimately enhance customer satisfaction. Learn more about supply chain tools from Qodenext, the leading expert in supply chain operations.
