In order to stay competitive organizations are increasingly forced to look deeper into their supply chain to find both efficiencies and areas to mitigate disruption. As the world is drawing closer together, organizations are finding the need to understand the holistic view of their network.
Within the past decade the market has seen the affect of n-tier suppliers, such as:
- Motorcycle manufacturing, worldwide, paused due to a singular part made only by one supplier worldwide;
- A hard drive shortage, due to a tsunami which hit Thailand, where many of the hard drive manufacturers were reliant on only a handful of suppliers;
- Increased cost of computer hardware, due to 2nd tier, and deeper, suppliers going bankrupt in China;
- Delays across a range of products, due to port strikes and an earthquake in Japan;
- And so forth….
Knowing your direct suppliers is no longer sufficient. How does a company know how to respond, for example, if another volcano eruption occurs in Iceland? What products would be affected? Who needs to be involved in an action plan? Can we reach, and secure resources, before our competition?
At a minimum, to ensure you are protecting your organization, you should:
- Know what suppliers you are dependent upon (from both cost and revenue dependencies);
- Know what locations are relevant can be affected (both your operations and the suppliers);
- Know what the “arcs” between the suppliers look like (shipping ports, railway, etc.);
- Know how each material to product linkage, throughout the supply chain, connects;
- Be the first to know when there is a potential distress (e.g., judgments, liens, bankruptcies, acquisitions, negative news, etc.), a weather incident (e.g., tsunami, volcano, earthquake, etc.), or transport issue (e.g., port strike, railway closing, airport closure, etc.) may affect the ability to bring your products to market.
Through HICX’s Supply Chain Mapping solution, we enable you to have complete supply chain visibility, increase your resiliency, and be the first out of the blocks on all future issues.