Supply Chain Mapping: visualizing supply chains
The first step in creating sustainable supply chains is knowing who is involved in the sourcing and production of your products. Who are the suppliers in your supply chain and do you know from whom they source, the so-called Tier 2 suppliers? Each node in the supply chain is a potential risk for negative impacts such as deforestation, worker wellbeing, child labour or environmental degradation. These impacts can greatly affect your brand once exposed by media or other stakeholders.
The biggest impact most companies have lies beyond their tier 1 suppliers. Behind a single Tier 1 supplier, a multitude of Tier 2 suppliers are present, all delivering inputs. This process continues multiple times, resulting in a supply chain of thousands of suppliers, all directly or indirectly linked to your company. If suppliers are also subcontracting complete or partial orders, the supply chain becomes even longer and more complex.
It is therefore vital to identify and prevent any negative impacts. Supply chain mapping also results in identifying potential supply risks, potentially disrupting the production of your goods. Such disruptions have an enormous impact on the results of a company and outweigh any investments made in better understanding and controlling your supply chain.
Benefits of Supply Chain Mapping
- Understand the relationships between stakeholders in the supply chain.
- Identify potential risks at supplier level, beyond your direct suppliers.
- Reduce complexity in supply chains.
- Reveal relations between suppliers.
- Easier implementation of corrective measures.
- Better analysis of the total risk per supply chain or product.
- Connect audits and assessment to individual suppliers, and see which products are affected.
How supply chain mapping can help minimize risks and costs
Today’s supply chains are more complex than ever, and brand owners are being held ever more accountable about quality or sustainability issues in their supply chains. Supply chain mapping can help to identify hotspots and potential risks, in order to ensure future supply and become more sustainable.
With the rise of social media, when a fashion brand owner, for example, is tied to a tier n sub-contractor using forced child labour, the damage to their reputation can be quite significant. It is therefore increasingly important for companies to find out if there are at risk suppliers or factories in their supply chains before a crisis happens.
Supply Chain Mapping can reveal potential risks in your supply chain, but also uncover potential cost savings!
How supply chain mapping technology can help
With ChainPoint’s supply chain mapping technology, you can record and visualize your entire supplier base. Not only your Tier 1 suppliers, but also Tier 2,3,4 etc. It’s a multi-tier approach where by creating linkages between suppliers, relations are revealed, risks are exposed and corrective measures become easier to implement. Easy onboarding solutions make it much easier to discover all suppliers tied to your product.
Interactive maps and advanced visualisations can be created from data retrieved from your supply chains. Data is present at various steps in the supply chain, in different formats. By collecting all data in one flexible system, insight can be gained into the true impact of your supply chain.
Besides mapping your suppliers, ChainPoint’s technology also allows you to connect audit information, or information retrieved via self-assessments to individual stakeholders. Advanced scoring, using so-called RAG scores, makes it immediately clear what your hotspots are, and corrective measures can be initialized immediately. Proactive alerting informs you when thresholds are crossed, allowing you to react faster to potential threats.