Supply/Value Stream Mapping

Mapping your supply/value streams

A final part of the strategic sourcing analysis involves using all the information you have gathered in order to map out your current supply/value streams. The first streams to address are those which are primary to the business or organisation such as those relating to the supply of direct goods and services.

The secondary supply/value streams also need to be mapped as appropriate – in particular those of critical importance to the business such as those identified in supply positioning analysis as the strategic critical and strategic bottleneck segments. This should be undertaken for both direct and indirect requirements.

These supply/value streams need to be tested for relative power between the supplier and the buying organisation. They need to be tested for areas of vulnerability to the buying organisation and profit and gross margins should also be identified as appropriate. Demand amplification mapping is a useful methodology when evaluating supply/value streams. If you would like further information on these methodologies please contact our Professional Practice Team.