Since the early 2000s, supply chain mapping has garnered significant attention from businesses, promising deep visibility into supply chain dependencies and better coordination with suppliers and sub-tier suppliers.
In recent years, interest has surged due to growing supply chain complexities and frequent disruptions. Invariably, businesses new to supply chain mapping often have high expectations, influenced by optimistic media coverage and bold promises from consultants and risk management solution providers.
However, to ensure success, it's essential to acknowledge the practical challenges and adopt strategies that move businesses closer to an agile and resilient supply chain.
Before exploring solutions, let’s bust some common myths.
Myth #1: Supply chain mapping delivers complete end-to-end visibility
The idea of achieving full visibility across a supply chain is often overstated. While supply chain mapping leverages bill of materials (BOM), bill of lading (BOL), trade records, and customs data, the accuracy and relevance of insights vary depending on factors such as supply chain complexity, data availability, and privacy laws.
Additionally, sub-tier mapping data may contain irrelevant information due to involvement of supplier affiliates and freight forwarders, as well as broad or incorrect HS code classifications, misdeclaration of shipments, etc. As a result, accuracy is low to moderate in most cases. While engaging directly with tier 1 suppliers can improve data accuracy, this approach relies on strong supplier relationships and influence, which diminish further down the extended supply chain.
Perhaps the biggest hurdle is that suppliers are often reluctant to disclose critical details about their sourcing process and sub-contractors to protect intellectual property and competitive advantages. Visibility into service categories is even more difficult due to the absence of transportation and customs records, unlike physical goods.
Myth #2: Implementation is quick and takes just weeks
The reality is that getting visibility into a supply chain takes months, if not years, depending on complexity. Even with advancements in AI and analytics, several factors extend the timeline:
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Supplier data must be cleaned and standardized before analysis, as client systems often have inconsistent naming conventions and missing information.
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Sub-tier relationships require product composition data, but suppliers may delay or withhold BOM details, citing trade secrets.
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AI-driven insights must often be validated by industry experts (e.g., engineers, product designers) for complex products.
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Data comes in multiple formats and must be harmonized for meaningful analysis.
Myth #3: Supply chain mapping guarantees a high ROI by identifying all disruptions
While supply chain mapping can enhance risk awareness, its return on investment depends on several key factors:
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Company size and influence
Large enterprises can invest heavily in mapping and exert influence over suppliers, while smaller businesses may lack the resources or leverage to gain meaningful insights.
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Data relevance over time
Supply chain networks constantly evolve due to changes in sourcing strategies, emergence of trade barriers, supply contract expiries, and geopolitical changes, etc. Without regular updates, mapping insights become outdated.
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Continuous monitoring is required
Mapping alone isn’t enough. Businesses must invest in real-time disruption monitoring. However, media coverage is skewed toward large corporations, making it difficult to track disruptions affecting smaller sub-tier suppliers.
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Limited influence over sub-tier suppliers
Even when risks are identified, companies often lack direct control over sub-tier suppliers, meaning risk mitigation efforts remain focused on tier 1 suppliers and subject to contractual limitations.
How to Make Supply Chain Mapping More Effective
To maximize the value of supply chain mapping, businesses should focus on strategic implementation:
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Prioritize strategic categories and suppliers
Given the time and investment required, focus on high-impact categories where visibility can deliver material risk reduction.
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Take a hybrid approach for better accuracy
Since AI-driven insights from trade records can be incomplete, supplement them by engaging tier 1 suppliers through structured questionnaires.
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Collaborate with key suppliers to share benefits
Encourage supplier participation by sharing aggregated insights and resources, helping them mitigate shared risks and comply with evolving regulations.
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Regularly update supply chain mapping
Establish a process to refresh mapping at regular intervals or whenever market conditions shift, such as changes in tariffs, trade barriers, or geopolitical events.
Moving from Expectation to Execution
Supply chain mapping is a powerful tool, but only when executed strategically. It is not a silver bullet, but with the right focus, supplier engagement, and ongoing updates, businesses can use mapping to enhance resilience, reduce risk exposure, and drive smarter procurement decisions.
At WNS Procurement, we help businesses move beyond the hype and monitor supply chain risks in a way that delivers real value. Get in touch to explore how we can support your risk management strategy.