Module 1 - Session 2: Supply Chain Mapping
Exercise 1: Supply Chain Mapping
Sep 29, 2014
Introduction of Supply Chain Mapping
Supply chain mapping is an analytical tool used in process management and strategic SCM. It is a conceptual map which clearly identifies critical parties or players in the supply chain and relationships between them. It also represents the flow of materials, cash and information throughout the chain. It can identify bottlenecks, suppliers, logistics coordination, potential competitors, opportunities, overlaps and duplication of effort and resource. A strategic supply chain map is created first which represents overall company strategy depending upon company’s value, goals. After that process map is completed by an organization. A complete map can be used to evaluate and monitor the effectiveness and efficiency of the process. Many organizations and companies are using the supply chain mapping as an important tool to assess risk before making any strategic decision in supply chain.
Purpose of this Map, Problem and Usefulness of Map
I am working in a real estate rental and construction company. It has over 35300 suites in 225 properties across 5 provinces in Canada. Mission of our company is to serve and provide our Resident Members (RM) with quality rental communities. The above mission statements govern the decisions and policies of our company makes and determine the way we treat each other, our associates, our resident members and our communities. We are providing repair and replacement services within 72 hours. To provide multi dimensional services to the RM as quick as possible the supply chain management department is working efficiently. It contributed to our company's ability to compete and differentiate itself from others in the real estate market and placed our company among top five companies. It appeared from the performance evaluation analysis for the year 2012 that it took much time and money towards repair and maintenance of Heating Ventilation and Air-conditioning (HVAC) system especially in Edmonton area in Alberta province. Most of the time taken by the contractors to search and collect spares and the cost of services also charged much higher. Through a management decision a Preventative Maintenance (PM) department was established in 2013 to reduce the use of contractors by June 2014. From July 2014 PM department took over all repair jobs. To facilitate quick repair they forwarded a list of inventories to all sites with a request to order and maintain those inventories at all times. In September 2014, the finance department informed the management that the yearly repair and maintenance budget in Edmonton area is exhausted and requested additional budget for remaining three months of the year. The purpose of this supply chain process mapping was to clearly identify critical parties/players in the supply chain, relationships between them, flow of materials, bottlenecks, review the decision taken for change, logistics coordination, opportunities, overlaps and duplication of effort and resource. At the end to identify the support for further decision making. The supply chain process mapping was created, reviewed and analysed. Analysis shows that all 17 areas were requested to order and maintain excessive inventories, lack of detail plan by the PM dept and unrealistic supply chain coordination in this area has contributed to this problem. Salaries of 7 members of PM team, their tools and cost of vehicles added overhead cost. Management decision to establish a PM department was found justified but implementation was not done correctly. There was no monitoring system in place and supply chain management department was not consulted. Details of analyses are presented with facts and figures. Recommendations are made to redesign logistics supply and work process of PM dept which will reduce time and cost of repair and maintenance...
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