Customer Solutions

Supply Chain Mapping

 Supply Chain Mapping
On a mission to improve supply chain
management within your organization? Mapping
out your processes is an inexpensive way to
make great strides and improvement.

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 Supply chains are constantly evolving,
But profitability is elusive, without knowledge.

An evolving but seismic shift is occurring – you are

increasingly operating in a world where the supply
chain must manage goods (and services) not sitting in
a distribution center but constantly in motion, requiring
a whole new level of visibility systems, synchronization
techniques, and (most importantly) management skill sets.

Supply chain value mapping defines how to arrive at

the desired outcomes in a supply chain. It commonly
encompasses an analysis of manufacturing; origin sourcing;
vendor compliance and standardization; transportation; and
the financial that maximize economic profitability (e.g.,
capital and fixed-asset utilization, day sales outstanding,
days of inventory on hand, and the cash-to-cash conversion
cycle). In short, every critical business function and process
should be analyzed.

This analysis starts with a “whiteboard session” that involves

all the key decision makers within the organization. For
example, the decision maker in finance (e.g., CFO or
controller) should be on hand to baseline key financial data
that drives shareholder wealth and value. Changes to a
supply chain should positively impact the cost of goods sold,
purchases outstanding, day sales outstanding, inventory
SIMPLY PUT turnover and operating ratio, and, ultimately, a company’s
economic profitability.
It is critical to start “looking around corners” and trying to foresee problems
before they fully emerge. Knowing and maximizing our supply chain helps.

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“Change is required. There is a process
of change, just as there is a process of
manufacturing, or for growing wheat.
How to change is the problem.”
W. Edwards Deming, American statistician, professor,
author, lecturer and consultant

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 Supply chain map is your path to improvements.

Supply chain mapping is the first step in creating an

“outcome-driven supply chain.” The process identifies
the change that will differentiate an organization from its
competition, serve a client base with a prosperous value
proposition, reduce internal cost, and drive profitability.

We get started with mapping your supply chain at its most

basic level, it is the series of steps and persons involved
with every stage of your operation. It encompasses your
suppliers, their procurement of material and works, all
the way down through your distribution network until it
reaches the final customers.

One basic technique of supply chain management,

which is greatly underutilized by many businesses, is the
mapping and drawing of your supply chain and production
processes. As a company grows and expands, often the
supply chain becomes a tangled network.

By drawing out your operation on paper or in a

“whiteboard” session, you can visualize and understand
your problems. Incorporating everyone in the process
makes it easy to identify areas of concern and will help
alleviate waste.
”The modeling tools that UPS uses evaluates the many variables that make
up your supply chain; but beyond the tools, our experts excel at helping you
build a flexible supply chain that generates additional revenue and profit.”
Tom Page, Director for International Regions, UPS, Customer Solutions, has used his more
than 30 years of global logistics experience to help businesses achieve their goals.

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When we talk supply chain mapping, we are really talking about uncovering new
opportunities to improve supply chains. With UPS, you enter into a collaborative process
where our expertise and your supply chain combine. Our goal is to help you reduce cost,
improve service, or address particular problems.
Through this exploration, our trained logistics experts pinpoint the “quick fixes” that can
immediately be implemented; as well as, ascertain longer term initiatives and solutions
that align with your overall global supply chain.

Your Supply Chain

Suppliers Manufacturing Distribution Retail Consumers Returns

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Get up and close to your supply chain.
Process mapping provides a visualization of all the steps needed to procure and Do not forget the receiving end.
produce materials, deliver a product, and understand potential problem areas. Just Are there any issues that may arise during the receipt of ordered goods. For example,
like conventional maps, your process design should have a start and end point, with you may have identified that improper orders are common with an individual supplier;
different sections outlining various stages along the way. Here are the basic steps to as a result, you should ensure your receiving function has a process for checking the
creating such an outline: order before the supplier’s truck leaves the warehouse.

Draw out your suppliers. Where do the finished goods go?

What does it take to purchase and receive items? We include critical information such Do you spend a lot of time moving inventory? Does your material or finished goods
as lead times and minimum stock orders. If you have had any problems in the past inventory move to one place, only to be moved again the next day? Mapping out
(late deliveries, incorrect deliveries etcetera), we include these on the map as well. these processes allows for better visualization of where there is wasted time and
This will help you get a better sense for what you’re dealing with, and how to avoid energy. Remember, where there’s waste, there’s lost money.
future problems.

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 Supply chain and process mapping is your pathway to
improvements, profits and competitiveness.

Continue this mapping process through your own internal

processes. Once you have this on paper, you can see the
process as a whole, and should initiate employee input.
Employees may notice missing items or have suggestions to
improve the overall process.

Your process map will make your complex systems visible

and allow our experts to help you identify non-value added
or redundant activities.

You, and your UPS experts will begin the process analysis by
examining the time, cost, resources, and people involved in
each step of each process. The goal is to…

Identify non-value added processes and steps

Identify the steps that consume the most time or resources
Identify processes that take too long or vary greatly in time
Identify points of delay and other pinch points
Estimate the value added by each step and judge the value
against the cost
Consider the reasons for problems and how to improve
specific activities or processes

See It In Action
Customer Solutions has experts trained to help you whiteboard every aspect of
your supply chain. From sourcing, through production, distribution, and into your
customers’ hands.

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 Reap the rewards of a lean supply chain.

You can also use the map for trial and error. Try shifting
processes around on paper to see if you can calculate and
anticipate future results. The map should include all problem
areas, which should be addressed as a team. It thus becomes
easier to target and eliminate such issues.

Unlike manufacturing plants, which run in scheduled shifts,

supply chains never stop. They run in constant motion as
multiple channel members harvest and create raw materials,
and then move these raw materials to manufacturers—who
then create products and move those products to markets,
where customers buy, consume, return, and dispose of them.
The supply chain begins with the conception of a product and
terminates when the product’s life ends.

So, remember: map, draw and visualize your operation. It’s a

great way to improve your processes, increase share holder
value, and reach your goals.

Simply Put
Supply chains are constantly evolving and changing as the environment which they
compete changes. The ability to design and redesign supply chains proactively that
creates competitive advantage.

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Customer Solutions
To learn more visit
ups.com/customersolutions

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