Supply chain analysis is the process of evaluating every stage of an organization’s supply chain. Often times, a supply chain is separated into five categories. These categories consist of raw materials, suppliers, manufacturers, distributors, retailers, and costumers. As the world evolves, so will a company’s supply chain needs. Analyzing how your company’s supply chain is reacting to that evolution helps determine the changes your organization needs to make to perform more efficiently.
How to Conduct a Supply Chain Analysis
There are two main steps when it comes to conducting a supply chain analysis. First, you must map the supply chain. This includes identifying all of the people, information, resources, activities, and organizations involved in the processes. This shows a clear flow and overview of the processes. It also shows how each part interacts and functions with one another. Second, each of the identified parts that were first mapped get accounts developed for them. This can be show both in physical terms and monetary terms. This step helps the analyst understand the importance of each role, as well as understand where the weaknesses lie. When the analyst obtains this information, they can offer solutions to improve on the organization’s weaknesses.