Supply chain process mapping

Because of the size and complexity of the supply chain network structure, the representations of inter-organization relationships and interdependencies between them are necessary. As the patterns between partners might be different, the process of producing comprehensive maps of the network to identify the interdependencies is essentially required. The next section outlines a business process improvement procedure for e-SCM and identifies some interdependeneies existing between supply chain processes. 

For each operation in the supply chain, the map depicts lead-time. The heavy line shows the critical path. For Process, for example. Figure 28.7 and Table 28.4 show that material for Process is on the critical path and has a five-day lead-time. Internal operations at Process require another 30 days. So, the total lead-time at Process is 35 days. Likewise, Old Line requires 95 days of lead-time, with 35 accounted for by material from Process and 60 by internal processes. Material for Process is not on the critical path so the 35 days does not count toward lead-time. Notice one supply chain step (No. 7) at Process takes 45 days, which could indicate a supply chain bottleneck. 

As firms are tending to expand their businesses internationally due to the constant progression of globalization (Ter Hofstede et al. 2002) it seems evident to focus on the geographic location of the supply chain processes. In order to gain an overview of the geographic location of the supply chain processes plan, source, make, deliver, and return it is helpful to pinpoint the processes on a map. 

Sure, this is a simplified example as the focus lies restricted to the processes located in North America but it stiU outlines the intention of pinpointing the processes on a map. Hence, for a single customer segment the corresponding supply chain processes plan, source, source return, make, deliver, and deliver return shall be located in the world map depicted in Fig. 9.12. In order to gain a rough overview and to avoid complexity, it shall be stated in which part of the world a process is carried out. For example whether the make process is conducted in Europe, North America, South America, Australia, Africa, and/or Asia. 

Before the mapping process can be undertaken it needs to be recognised that supply chain processes cross all functions of the organisation. It is therefore important to have all key functions represented. The task force must be assured of top management support. A project champion may also need to be appointed. 

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

The next step in process mapping is to imderstand how your business operates and how the different departments interact with each other. This needs to be understood before you can begin to examine how the supply chain works and how improvements can be made. A process map for a business... 

Using the quality tool of process mapping, a picture of the supply chain can be developed. When this process is started you must look at where the process begins and ends. This requires a good understanding of where your... 

The next step in the process is to begin to develop the map of the supply chain for your organization. 

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

In Chapter 2 we will define the snpply chain and the companies involved, and show several examples. In addition, we will discuss the development and effective use of process mapping. A complete supply chain and process map of a specific organization will be presented in order to introduce the supply chain concept. This will help identify who the players might be for your organization. 

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. 

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. 

Making the transition is easier said than done. It is a stark contrast to the conventional supply processes that drove efficiency in the supply chain for the past 30 years. The journey requires a visionary ieader, a guiding coalition, a multiyear road map, and a strong change management program. 

Define. Define the right set of horizontal processes and build a three-year road map based on the company s definition of supply chain excellence. 

The current process flow is analyzed to determine nonvalue added activities. Then, a second sub-group out of the nonvalue added group is selected by considering what if RFID was deployed. A thorough investigation of each step, along with interviews with experts and additional data collection, the RFID-enhanced value stream map is reduced to 18 steps, as opposed to 54, which represents 66.7% improvement in number of steps. Such an improvement not only makes the supply chain more reliable but also reduces the overall lead time drastically, which is estimated to be a reduction of 60%. 

A key factor for the successful construction of e-network is that each organization in the supply chain looks beyond the basic function within the business and synchronizes its processes with the entire supply chain. Based on this concept, the network construction may not achieve the required result without mapping the process and considering the capacities of the other processes of the entire chain (Al-Hakim, 2003). Standardization of business processes is necessary to allow the communication and integration between business partners of the supply network since the complexity of processes in the supply chain has grown exponentially (Gunasekaran, Patel, Tirtiroglu, 2001). 

Mapping the processes forthe supply chain is proposed as the second step ofthe eSCM-1 procedure after standardization because companies have an overwhelming number of processes that require integration. The purpose of business process modeling is also to analyze processes, manage supply chain interdependencies, and define the functionality and behavior of supply chain pro-... 

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