Do you know where each raw material comes from and who influences your business? What if there’s a problem just around the corner that could disrupt the entire process? Multi-layered mapping is the answer to how to keep everything under control. Read our article and learn how multi-layered mapping can help you reduce risks, increase efficiency, and gain an edge over the competition.
Imagine your supply chain as a puzzle. Do you have an overview of all the pieces? Multi-layered mapping helps you see the whole picture—not just the first layer. The supply chain isn’t just about your direct suppliers. What about their suppliers? Or the suppliers of their suppliers? Each of them impacts your business, whether it’s product quality, costs, or delivery time. This is where multi-level supply chain mapping comes into play.
What Is Multi-Layer Mapping?
Simply put, multi-layer mapping allows you to visualize the entire supply chain from the ground up. You don’t just focus on your direct suppliers (Tier 1). You go further—into the layers of Tier 2, Tier 3, and even deeper. This way, you gain an overview of who is involved in the production of your products, where the materials come from, and where risks may arise.
For example, in 2024, a Gartner study revealed that up to 65% of disruptions in the supply chain originate from indirect suppliers (Tier 2 and lower). And it’s these blind spots that often present a critical problem.
How Does It All Work?
Multi-layer mapping relies on modern technology and accurate data. What does this mean for you?
- You collect data about your suppliers, their subcontractors, and third parties. This involves using supply chain databases that gather information from various sources.
- You use supply chain mapping software to visualize your data and help you understand the relationships between suppliers.
- You conduct supply chain data analysis to identify potential weaknesses—such as geographical risks, financial stability of suppliers, or their reliability.
- Based on this risk analysis, you take measures to ensure your supply chain remains stable and resilient.
Why Is Multi-Layer Mapping Worth It?
1. Uncover Risks Before They Cause Problems
The supply chain is like a domino effect. One faulty link can destabilize the entire network. Thanks to multi-layer mapping, you’ll identify risks in the supply chain before they become an issue. For example: Your subcontractor relies on materials from a region hit by natural disasters. Without mapping, you wouldn’t see this—and the solution would come too late.
2. Increase Efficiency and Reduce Costs
You know who the key suppliers are and where you can optimize. You may find that some parts of the chain are unnecessarily duplicated or that you have unused capacities.
3. You Gain a Competitive Advantage
Supply chain transparency is becoming increasingly important to customers. By showing that you know where your products come from, you secure a better market position.
Interesting fact: According to a 2024 McKinsey survey, multi-layer mapping was able to reduce risk management costs by up to 30%.
Practical Examples
Companies like Apple and Pfizer use multi-layer mapping to ensure the continuity of their processes. Pfizer mapped the entire chain during vaccine production, from raw material suppliers to final distribution. As a result, they were able to quickly and accurately adapt when certain key materials were in short supply.
How to Get Started?
- Find the right software for supply chain mapping. Platforms like Semantic Visions or Resilinc offer tailored solutions.
- Create a team responsible for collecting and updating data. Data is the fundamental building block of any mapping.
- Involve your suppliers. Without their cooperation, you won’t get the full picture.
Why Should You Go For It?
Multi-layer supply chain mapping is the key to greater resilience, efficiency, and transparency in your business. It helps you avoid blind spots, better manage risks, and gain a competitive advantage. If you want to stay one step ahead, investing in this technology is definitely worth it.
Sources:
https://www.semantic-visions.com/solutions/multi-tier-supply-chain-mapping/
