Supply Chain Analysis 1 Agree the supply chain

Supply Chain Analysis 1. Agree the supply chain to focus on and build a simple supply chain of the category The team should brainstorm the various steps of the supply chain on a flipchart. When this list of steps has been completed, transfer them onto post-it notes. They will be much easier to move around when the team discusses the order of the steps. It is wise to work from the company receiving the goods or services and work back through the supply chain. Tier 3 Components Tier 2 Sub-Assemblies Tier 1 Manufacturer 2. Develop a more comprehensive supply chain map for the category Most supply chains are not linear but rather they are a complex web of supplier inter-relationships. Hence it is worth taking time to develop a more comprehensive supply chain map that incorporates the various alternative supply routes that exist. This will build up the team’s understanding and will hopefully begin to prompt some questions about the effectiveness of the supply chain. Below is an example of a supply chain for PCBs that has been enhanced to illustrate a more complex situation. Tier 3 Tier 1 Distribution/transport Resin suppliers Epoxy, phenolic Paper, glass fibre, carbon fibre, kevlar Distribution Tier 2 Laminate Prepreg ROAD Copper Foil Company Chemicals Heavy industry for standard chemicals Chemicals, Ink, Paste for Etching, cleaning, etc… Special chemicals Drill bits, Hangers, tooling & spares Base metal Packaging material Copper mines, recycled Steel, tungsten carbide steel © Copyright 2002 - 2020, Future Purchasing Consulting Limited, All Rights Reserved. Copper Plating Chemical Machines maintenance services manufacturing processes AIR FORWARDER SEA FORWARDER O R G A N I S A T I O N 2

Research & Analyse Supply Chain: Supply and Value Chain Analysis Template Tier 4 (role) Tier 3 (role) Tier 2 (role) Tier 1 (role) Activities (what does this tier do and how does it add value? ) Current Suppliers Used (who do we use in this specific supply chain? ) Alternative Suppliers (who are other key players in the market? ) Market Dynamics (what is going on in terms of new entrants, substitutes, barriers, competitiveness etc? ) Cost Drivers and Trends (what % of the total cost does this tier create and what are the key cost drivers and trends? ) Supply Risks & Issues (what risks have been identified and is there a BCP in place to address them? ) O R G A N I S A T I O N Value Lever Opportunities (how can extra value be created in each tier e. g. spec optimisation, supplier integration etc? ) © Copyright 2002 - 2020, Future Purchasing Consulting Limited, All Rights Reserved. 3