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Discover how to collect accurate data to map your supply chain. Learn the pros and cons of using AI data vs Supplier-Validated data for supply chain mapping.
Data is Key to Mapping Your Supply Chain
Supply chain mapping is a key part of any supply chain resiliency program. It involves gathering information about your supply chain and creating a detailed global map of your suppliers and suppliers’ suppliers. Your team can then use this map to facilitate analysis, improve operational efficiency, aid in strategic decision-making, comply with ESG regulations, and more. So how do you get started mapping your supply chain?
Data is the key. This includes information about who your suppliers are, where they are located, which parts those suppliers produce, contact information for each site etc. But how do you acquire this data? Often the question is tied to the decision of whether to build vs buy a supply chain resiliency program. If you build an in-house solution, you may decide to source AI data independently. While, if you buy a supply chain solution, you may be able to easily validate your suppliers.
At Resilinc, we have been mapping supply chains for over a decade and pride ourselves on being the industry leading supply chain resiliency solution. In this blog, we will share our industry insights on the best methods for collecting data to accurately map your supply chain. To do this, we will explore the pros and cons of using AI vs Supplier-Validated mapping. Let’s start by looking at the benefits of AI data.
AI Data: Supply Chain Solution Considerations
What is AI Mapping?
AI mapping utilizes advanced algorithms to analyze vast amounts of data. It provides sub-tier visibility by mapping supplier-customer relationships through publicly sourced data such as bills of lading, news feeds, and supplier contract data using company website information. AI Mapping quickly identifies potential suppliers and sub-tier networks, especially when there’s limited information available. It provides a fast, broad view of your supply chain, which is ideal for initial assessments.
Benefits of AI Mapping with Resilinc
- Illuminates Your “Most-Likely” Suppliers: AI Mapping rapidly identifies potential suppliers and sub-tier networks, offering a high-level view of the supply chain landscape.
- Quickly Processes Large Datasets: Ideal when there is limited or no prior information on the supply chain. AI Mapping can process large datasets to provide a foundational understanding of the supply chain.
- Provides a Strategic Overview: AI Mapping provides directional information that can help give a strategic overview and inform initial decisions about the supply chain.
- Helps Establish Supply Relationships at Company Level: Establishes broad supply relationships, highlighting connections at the company level.
- Prioritizes Speed Over Accuracy: Prioritizes speed, making it suitable for quick supply chain assessments where time is of the essence.
- Fills in Information Gaps: AI Mapping is useful in scenarios where suppliers are reluctant to disclose detailed information.
Example of using AI Data to Map Your Supply Chain
Imagine a global electronics manufacturer called SmartTech produces smartphones and other consumer electronics. The company sources components from across the globe, including microchips from Taiwan, displays from South Korea, and batteries from China. SmartTech hasn’t done any prior supply chain mapping and decides it needs to quickly gather information on the supply chain. Valuing speed over accuracy, the company chooses to map its supply chain using AI data.
AI tools scan publicly sourced data and uncover information about SmartTech’s suppliers, including some data that SmartTech was missing—such as locations of suppliers’ sub-tier suppliers. Using the information AI mapping gathers, SmartTech is able to reach out and establish relationships with suppliers at the company level.
Need to quickly get your supply chain resiliency program up and running? Read our eBook to learn the pros and cons of building vs buying a supply chain resiliency program and discover which method is faster and more cost-effective.
Supplier-Validated Data: Supply Chain Solution Considerations
What is Supplier-Validated Mapping?
Supplier-Validated Mapping involves direct input from suppliers. Using this method, suppliers provide detailed information about their sub-tiers and manufacturing sites, enabling part-to-site mapping, capacities, and more. While Supplier-Validated Mapping may require more time compared to AI Mapping, it offers unparalleled accuracy and detail.
Benefits of Supplier-Validated Mapping with Resilinc
- Enhances Risk Management: Supplier-Validated Mapping provides granular details that are crucial for comprehensive supply chain risk management such as part-site mapping, alternative sites, sub-tier suppliers, site recovery times, business continuity plans, and key site contacts.
- Effectively Maps Products to Suppliers of Parts: Ensures precise mapping of products to their specific suppliers, reducing errors and uncertainties. It can also help to get visibility into raw materials and commodities.
- Customize the Data You Gather: Resilinc allows customers to request customized data from suppliers based on business requirements. For example, if a company needs specific information to comply with the Uygur Forced Labor Protection Act (UFLPA), Resilinc has questions for suppliers tailored to that legislation.
- Collaboration Center: Resilinc customers can use the Resilinc collaboration center—an online portal for companies to engage with suppliers—to collect information on parts, sites, and locations directly from suppliers.
- Collect Responses from Suppliers: When a disruption occurs, Resilinc collects information from suppliers to confirm the impact. For example, if a typhoon strikes Taiwan, Resilinc will send out an assessment to see which suppliers have been impacted.
- Supplier Qualification: Before signing with a new supplier, Resilinc customers can gauge a supplier’s resiliency using a supplier resiliency score assessment. This assessment also reveals risk exposure at the part and site level.
Example of using Supplier-Validated Data to Map Your Supply Chain
After gaining a view of its “most-likely” supply chain using AI Mapping, SmartTech decides it wants to get a more granular view of its global supply chain. SmartTech needs to uncover more information on sub-tier suppliers to ensure ESG compliance with legislations like the UFLPA and respond more quickly to supply chain disruptions.
To achieve this enhanced visibility, the company is willing to invest more time in mapping the supply chain with supplier-valued mapping. The company works with Resilinc to contact suppliers and gather detailed information about sub-tier suppliers, materials, and commodities. They also use Resilinc’s UFLPA assessment to gauge which suppliers are at risk of having ties to forced labor.
In this example, SmartTech actually has used both AI Mapping and Supplier-Validated Mapping, or what’s known as a Hybrid Approach to mapping. Let’s take a closer look at the benefits of using a Hybrid Approach to map your supply chain.
A Hybrid Approach to Supply Chain Mapping
What is a Hybrid Approach to Mapping?
Combining the strengths of AI Mapping and Supplier-Validated Mapping offers a holistic and resilient solution to supply chain risk management. This approach leverages the speed and broad reach of AI Mapping with the accuracy and depth of Supplier-Validated Mapping. Resilinc’s hybrid approach uses AI Mapping to quickly identify potential areas of interest, and Supplier-Validated Mapping to validate and enrich this data, ensuring a comprehensive view without solely relying on one method.
Benefits of using a Hybrid Approach to Map Your Supply Chain
- Comprehensive Visibility: Quickly identify potential suppliers and sub-tier networks with AI Mapping, then validate and detail these connections with Supplier-Validated Mapping.
- Accuracy and Speed: Achieve a balance between rapid initial assessments and detailed, validated insights, ensuring both speed and accuracy.
- Enhanced Resilience: By combining the strengths of both methods, a hybrid approach ensures a resilient supply chain capable of withstanding ongoing supply chain disruptions.
How Should Your Company Collect Data for Supply Chain Mapping?
In this blog, we looked at three ways to map your supply chain: AI mapping, Supplier-Validated mapping, and a hybrid approach, which combines both. Broadly speaking, AI mapping is a good choice for companies that need to quickly gain a picture of the supply chain. While Supplier-Validated mapping requires more time, it is an investment that enhances overall risk management.
Resilinc’s hybrid mapping approach—combining the rapid, broad insights of AI Mapping with the detailed, accurate data of Supplier-Validated Mapping—ensures that our clients have the tools they need for a resilient supply chain. By leveraging our unique offerings, we provide unparalleled visibility and proactive risk management.
Want to learn more about building vs buying a supply chain resiliency solution? Discover other supply chain solution considerations outside of data you should look at outside of cost before you build vs buy a supply chain resiliency program.
