Supply network mapping is labor intensive but can reduce risks to supply chain disruptions from COVID-19 to earthquake damage.
Most companies do not map their network and do not know how to mitigate risks when a crisis unfolds. Another reason the mapping proves helpful is removing the focus from lowering procurement costs to better understanding critical suppliers at many levels upstream.
To reduce the labor costs involved in mapping, focus on key components from a bill of materials, such as the top five products by revenue, and then drill down to the raw material vendors.
- Coca Cola Supply Chain (Feb 22, 2016, Jonathan Hu)
- Starbucks Example Coffee Supply Chain (Feb 29, 2016, Simon Green)
This post is based on the Supply Chain Digest article, Supply Chain News: Coronavirus Again Illustrates Need for Mapping Your Supply Chain, Harvard Business Review Article Says, by SC Digest Editorial Staff, April 6, 2020, and the YouTube videos in the Spotlight. Image source: ConceptCafe/Shutterstock
1. Supply chain mapping for a retailer could be beneficial. Draw a supply chain map for a grocery store chain. What are missing items from your supply chain map that Continue reading