Supply chain mapping

Supply Chain Mapping Considerations 2120 7.3. Organization Structure 2125... 

Supply chain mapping should begin from the right side (customer side) of the network, as shown in Figure 2. This wUl bring the correct focus to why the map is being constructed. 

At this point, existing processes and performance can be included in the supply chain map. 

Several examples of maps of different supply chains are shown here. Figure 2.4 is a general supply chain map. It shows the basic model of the suppfy chain and all the elements that need to be included. From this... 

Process mapping Supply chain management Supply chain map Acquisition costs Possession costs Application costs Inspection costs Internal/external failure costs... 

The first step in a supply chain audit is to map chain structure and ownership as well as associated flows of physical products and information (orders) between members of the supply chain. The role of a supply chain map is to get a picture of the overall supply process and where the particular retail store fits. It reminds the manager that the current supply sources may need to evolve as the product characteristics change. 

As an example, imagine that you are inside a grocery store and want to understand the supply chain of finished goods upstream of this store. The supply chain map (Figure 1.9) starts at the store and works its way upstream. The store carries inventory, which is picked up and purchased by retail customers. The goal of the store is to make things convenient for customers by enabling them to get their demand satisfied immediately... 

This chapter focuses on supply chain structure and ownership, one of the Cs in the supply chain framework. The chain structure is the backbone or the pipeline through which information and material flow in the supply chain. It is the process map of a supply chain that typically crosses many independent company boundaries. Once a supply chain map is generated, the location of entities, as well as ownership, and the connections to the rest of the supply chain architecture influence the observed lead times, costs, incentives, and thus performance, of the supply chain. 

In addition to summary reports regarding the supply chain, there are efforts to track the specific details for individual companies sourcing of their products. An open source software application called Source-map ([113]) maps supply chains linked to a dictionary of details such as their carbon footprint, greenhouse gas emissions, lead time, and more. The open source nature of the software enables crowdsourcing of supply chain maps and enables tracking down to the raw material source. The site contains source-maps for electronic products, apparel, food, and many others. The software permits any user to create such maps based on the data they possess and then pass the data along to others to edit and develop. 

But individual firms can use these maps to work with their suppliers to ensure that the associated supply chains conform to regulations or the company s ethical constraints, inform the customer regarding the environmental impact of the product sourcing, and so on. For example, the site shows the sourcing of chocolate across the world ([15]), along with specific supplier-related issues that are causes for concern. The data in these supply chain maps, similar to the NGO reports, potentially impact consumer choices and put pressure on companies to make changes. 

The reasons for supply chain excellence and reference points for projects dedicated to that end usually include process costs, incurred both in a single company (38% of respondents declared that they referred to company-wide cost data when making decisions) and in the entire supply chain (39% of respondents apply cost controlling in the supply chain). The data presented indicate the growing importance of control functions in supply chains. Maps of processes, both internal and... 

In addition to the described AS-IS supply chain mapping, the topic of performance metrics is considered in this section. Hence, an approach is presented on how to select key performance indicators (KPIs) of the supply chain in order to measure the right things at the right time with reasonable accuracy. In addition, a selfbenchmarking approach is introduced to reveal improvement areas. 

In Figure 22.3, we return to our supply chain map to trace the expansion of functionality in these systems. The original MRP was principally a supply function, confined to a single department as we show in the figure. So it occupies a space on the incoming side of the enterprise where material acquisition is planned and processed. There is little effect on other functions. Closed-loop MRP has an impact beyond the supply function. Production processes have to be documented. Forecast requirements are bounced against the capacity to deliver them. So multiple departments in the enterprise are affected. 

Figure 4.1 Supply chain map in case company A SC Material flow when raw materials are not available.

Figure 4.3 International supply chain map in case company B...

To enable the identification of opporfunifies for reducing end-fo-end pipeline time an essential starting point is the construction of a supply chain map. 

A supply chain map is essenfially a fime-based represenfafion of fhe processes and activifies fhaf are involved as fhe maferials or producfs move fhrough the chain. At the same time the map highlights the time that is consumed when those materials or products are simply standing still, i.e. as inventory. 

Based on the supply chain map, the relevant risks for the supply chain can be efficiently identified by means of the six processes as well as the predefined key risk sources within each process. Whereas these predefined processes and risks are appreciated by the SMEs, care was still taken not to be too prescriptive. Therefore, for each of the relevant risks the company is asked to specify the main risk source. As will be seen in phase three, information on the risk sources is a precondition for any effective risk mitigation measure. 

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