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 ecommerce supply chain and how to get started.
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.
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.
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).
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.
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.
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.
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.
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.
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.
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.
In order to make the most of your supply chain map, there are a few steps to follow in the supply chain mapping process:
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.
Interested in learning more? Request a demo today!