Supply chain mapping

Mapping the supply chain is the first step in conducting a thorough supply chain assessment. This process helps identify vulnerabilities that could lead to business interruptions.

1. Create a basic map. Use sticky notes, a software program, or a flow chart tool to outline your product flow from materials sourcing to the final customer. Prioritize starting with suppliers that provide the primary operation with the most critical materials and equipment. Include the type of operation (e.g., manufacturer, service provider) and the product or service they deliver.
2. List supplier information. Include company name, headquarters, manufacturing locations, contact information, products or services, annual spend, and supplier tier.
3. Organize supplier data. Involve your sourcing or procurement team to gather and organize supplier information. If they don’t already collect the required data, create a plan to fill the gaps (e.g., gather from public sources, contact suppliers).
4. Request additional contacts. Ensure you also have contact information for buyers or compliance representatives. Add these new contacts to supplier database.
5. Identify business priorities. Consult internal and external stakeholders, including customers, to identify what is critical for the business. Consider factors like fair labor practices, environmental stewardship and the use of conflict-free minerals. For example, if a supplier operates in a country at risk for corruption, human rights violations, or environmental degradation, consider not prioritizing them.
6. Survey and assess supply chain strategy. Once the supply chain is mapped, assess each supplier’s risk based on criteria critical to business success and continuity. This requires annual surveys and data collection.

After mapping and assessing your supply chain, it’s important to develop a proactive strategy to mitigate risks you identified. The next steps you can take include:

• Implement Risk Mitigation Plans: Based on your assessment, create action plans to address vulnerabilities. This might include diversifying suppliers, investing in technology to improve supply chain visibility, or developing contingency plans for critical suppliers.
• Monitor and Review: Continuously monitor your supply chain and review your risk assessments regularly. This will help you stay ahead of potential disruptions and adapt to changes in the market or regulatory environment.

By taking these steps, you can build a more resilient and efficient supply chain, helping to ensure business continuity and success.