From the readings this week we learned about the importance
of data driven decisions in managing inventory in a supply chain, but what do
you do when it is time to display your data? Sourcemap.com offers a great
visualization tool. Here is an example of Toms: the shoe maker with the One for One program that sends a pair of shoes to a developing region for every purchase of a pair in a developed region (please excuse the pejorative use of "developed").
This map displays the distribution of the end product to the
distribution hub in areas near to the recipients of the One for One program.
This is the “downstream” part of the supply chain, but it is just as easy
to display the “upstream” or procurement part of the supply chain. Here is an
example of Tropicana’s distribution network with the upstream location in Brazil and the distribution/manufacturing hubs located all over the world.
These images, however, only give a “big-picture” approach to the
distribution network of a supply chain. Therefore, much more information is required
before making any managerial decisions. For example, in the article “building a
Flexible Supply Chain for Uncertain Times” from McKinsey we saw how important
it is for a flexible production process that is capable of “shifting
manufacturing locations quickly as shipping costs change.” [1] Thus it would be
useful to overlay manufacturing capabilities onto these maps so that we can quickly view where manufacturing can be utilized for varying demand. Overlaying such
information could go further still. For example, one could highlight the inventory
levels in each of the distribution hubs in order to quickly evaluate safety
stock and replenishment requirements as discussed in “Managing Inventories – Reorder
Point Systems,” or you could overlay costs requirements for each leg of the
network in order to evaluate cost-effective network paths and so-on.
What other data/information could you add to these maps?
Do you know of other visualization tools that might help in displaying a supply chain?
Wine, McKinsey Quarterly, March 2009
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