Supply Chain Mapping for Ecommerce Sellers: How to Map Your Supply Chain

Imagine having the full picture of your network of suppliers—think products, raw materials, data, manufacturers, logistics partners, finances—so that you have full visibility into everything that is critical to your business. Supply chain mapping is the first step to understanding your supply network and streamlining the entire supply chain.

The benefits of supply chain mapping include greater visibility into each stage of the supply chain, risk management, process optimization, better traceability for meeting compliance and regulatory requirements, and a more resilient supply chain for everyone.

Keep reading for an overview of why you should map your supply chain and how to get started.

How Supply Chain Maps Increase Efficiency

In short, supply chain mapping increases efficiency by providing organizations with a detailed view of their entire supply chain operation.

With this visibility and understanding, businesses can spot inefficiencies, optimize processes, and implement changes that lead to better resource allocation, cost reductions, and more efficient operations while avoiding common supply chain risks and challenges.

Here are some ways supply chain mapping creates greater efficiency:

Identify Bottlenecks & Delays

Bottlenecks are points in the supply chain where processes slow down, causing delays that ripple through the system and can lead to supply chain disruptions if left unchecked. By mapping the supply chain, companies can visually identify where bottlenecks occur, whether they are in production, warehousing, transportation, or order fulfillment.

Once an inefficiency is identified, businesses can focus on improving that specific area—whether by adding resources, automating tasks, or shifting workflows—to alleviate delays and speed up the overall process.

Optimize Inventory Management

Supply chain mapping helps businesses track inventory levels at various stages—suppliers, production, and distribution.

By understanding how inventory moves and where it’s stored, businesses can reduce disruptions like overstocking (which ties up cash flow and increases storage costs) and understocking (which can lead to stockouts and missed sales).

Improve Communication & Collaboration

With a visual supply chain map, stakeholders across the organization—and with external partners like third-party logistics (3PL) providers—can gain a shared understanding of supply chain processes. Clearly mapping how information flows ensures that communication between departments (e.g., procurement, raw materials,  logistics, production) is seamless, reducing delays caused by miscommunication.

Supply chain mapping helps establish better workflows, improves decision-making, and ensures that everyone is on the same page, leading to quicker response times and more effective collaboration.

Enhance Supplier & Partner Relationships

Supply chain mapping helps businesses better understand their supplier base—which suppliers are critical, which are at risk, and how their performance impacts the supply chain.

By visualizing partnership relations between different suppliers, manufacturers, and logistics providers, businesses can identify opportunities to negotiate better terms, consolidate shipments, or even switch to more reliable or cost-effective partners.

Supply chain mapping also highlights backup options in case a primary supplier faces disruptions, allowing companies to adapt quickly, avoid delays, and minimize supplier risk.

Reduce Transportation Costs

Mapping transportation routes allows companies to visualize and optimize the flow of goods, reducing unnecessary movement or long, inefficient routes in both last-mile and mid-mile logistics. By examining shipping lanes, companies can identify opportunities to consolidate shipments, choose better carriers, or optimize loading and routing to help reduce unnecessary supply chain delays.

Eliminate Redundancy & Streamlined Processes

Supply chain mapping helps identify redundant activities or processes that add no value (e.g., duplicated paperwork, unnecessary steps in product handling) and provides a way to streamline workflows, eliminate waste, and focus on activities that directly contribute to value creation.

By removing non-essential tasks or automating certain processes (like order processing or inventory tracking with apps), businesses can improve their overall productivity and efficiency.

Enhance Demand Forecasting & Planning

Accurate demand forecasting is one of the most important factors in improving supply chain management and efficiency—especially during peak season but year-round as well.

Mapping and collecting historical supply chain data, along with current inventory levels, customer demand patterns, and external variables (e.g., seasonality, market trends), allows businesses to make more accurate forecasts and align production and procurement to meet that demand.

Improve Risk Management & Agility

Supply chain mapping can uncover potential risks, such as reliance on a single supplier, exposure to geopolitical risks, natural disasters, or dependencies on limited transportation routes.

With a mapped supply chain, companies can quickly identify vulnerabilities and develop contingency plans to reduce disruptions (e.g., finding alternative suppliers or diversifying shipping routes). This proactive approach to risk mitigation helps businesses become more agile and capable of responding to unexpected events without significant loss of efficiency.

Better Resource Allocation & Cost Reduction

By understanding the flow of materials, goods, and services across the supply chain, businesses can better allocate resources (e.g., labor, machinery, working capital) to areas with the greatest need or opportunity for improvement.

Supply chain visibility helps identify areas where redundant or underutilized resources can be reallocated, or where automation could reduce the need for manual intervention. This leads to more cost-effective operations, where resources are used efficiently and sustainability is prioritized.

How to Map Your Supply Chain Correctly

In order to make the most of your supply chain map, there are a few steps to follow in the supply chain mapping process:

• Identify the Scope: Determine the supply chain elements that are specific to your company’s supply chain, (e.g., sourcing, raw materials, lead time, suppliers, logistics, etc.).
• Gather Data: Accurate data collection from each stakeholder (suppliers, production teams, logistics partners, etc.) is crucial for efficient supply chain mapping.
• Map the Flow: Using supplier data, create a visual representation using diagrams, flowcharts, or specialized supply chain management (SCM) software tools.
• Analyze: Review and audit for inefficiencies, risks, and areas of improvement. Having accurate supply chain data will make for more informed decisions.
• Update Regularly: It is common for changes to occur in your company’s supply chain. Conducting regular reviews and updates are essential to keep the map accurate and relevant.

Enhance Your Supply Chain with Extensiv

Getting a good grasp of all the moving parts of your supply chain may sound overwhelming, but it doesn’t have to be.

With our comprehensive fulfillment solutions for brands—elevated by our ecosystem that includes top ecommerce software providers and hundreds of supported system integrations—Extensiv can help you turn your supply chain operations into a competitive advantage.

Some of our key features include:

• End-to-end supply chain visibility: Extensiv’s order management tool provides ecommerce businesses with real-time insights into their supply chain by pulling data from inventory, order processing, shipping, etc. and connecting that data from warehouses, logistics providers, and other supply chain partners.
• Inventory tracking and management: Extensiv’s inventory management solution tracks stock across multiple locations, including private warehouses, 3PL partners, and sales channels allowing businesses to know where inventory is located at any given time.
• Real-time analytics and reporting: Extensiv offers advanced analytics and reporting tools allowing businesses to analyze the  performance of their supply chain. These insights can be used to map out inventory turnover, order cycle time, and fulfillment accuracy.

Interested in learning more? Request a demo today!