Services for professional procurement.

Be better informed, make better decisions.

Multi-tier visibility to reduce risk and increase resilience

Supply Chain Mapping explained

www.achilles.com
Contents

Introduction 3 Part 3: Achilles’ Supply Chain Mapping Solution 8

Why it makes sense to outsource supply chain mapping 8

What is Supply Chain Mapping? 4
Not just a solution for buyers 9
How does Supply Chain Mapping actually work? 4

Conclusion 10
Part 1: Supply chain disasters in the media 5

About Achilles 11
Part 2: Are companies taking action?
What does the research show? 6

Regional results 6

Which of these documents do you hold

for the companies other than your main suppliers? 7

Sector differences 7

Do you map the supply chain for your products and

services down to your raw materials / grass roots supplier? 7

2
Introduction
Supply chain-related issues have hit the headlines several times
in recent years, with major brands suffering long-term reputational
damage as a result.
Today’s procurement and supply chain professionals are faced with
the ever-demanding challenge of managing risk across increasingly
global and complex supply networks. This means that not only
do they need to understand and have information on who the
direct suppliers they buy from are, but also those companies who
indirectly contribute components or services across the extended
supply chain. Without this information, there is no way of preventing
failures along the entire supply chain that might impact customers,
and subsequently damage company and brand value.
Globally, businesses are spending $60 billion (£38.7 billion) a year
on managing information about their suppliers, half of which is
wasted because they are failing to collaborate.
What’s more, over the last two years there has been an increase in
stories reported by the media where natural disasters, factory fires,
CSR issues, supply chain slavery, and health and safety failures are
impacting global supply chains.
With many organisations still risking reputational damage, taking
pre-emptive action is becoming crucial more than ever for those
who have not taken any action to prevent the next disaster possibly
affecting their company.
However, despite the increase of supply chain failures globally,
Achilles 2015 IFF research has found that the number of businesses
mapping their supply chains has remained fairly static over the last
year.
Achilles’ Supply Chain Mapping provides you with visibility of your
multi-tier supply chain so you can collect information to protect
yourself from risks through pre-emptive action.
In this white paper, we will look at what supply chain mapping
is, why supply chain mapping is important to protect your brand
reputation, and how the Achilles Supply Chain Mapping Solution
could assist the significant number of buyers who are currently
risking damage to their brands through lack of knowledge on their
deeper supply chain.

1
A critical analysis of UK procurement risk, Achilles, October 5th 2014 http://www.achilles.com/en/about-achilles/industry-
3
insights/1205-a-critical-analysis-of-uk-procurement-risk
What is Supply Chain Mapping?
Achilles’ Supply Chain Mapping solution is a service solution, How does Supply Chain Mapping actually work?
combined with technology, which aids the identification of the
The process of Supply Chain Mapping works by Achilles acting
suppliers involved down the entire supply chain.
on the buyers’ behalf through contacts with the supplier at tier 1
Jon Williams Product Manager at Achilles, explained that the in the supply chain, finding out how and from where they source
thorough process helps companies by: their products, and then allowing their tier 1s to easily contact their
tier 2 suppliers. The firm at tier 2 is asked the same straightforward
· Providing them with visibility to help them to mitigate risks
questions, meaning Achilles knows who to contact at tier 3, and
within their supply chains
so the process continues, as far down the chain as the buyer
· Providing them with early warnings regarding supply chain
wishes to delve.
convergence, as it highlights potential single points of failure
This enables suppliers at all tiers of the supply chain to increase their
· Increasing awareness of interdependencies within a supply
awareness of where their products are coming from.
chain
· Providing insight into the potential impact of global events, Achilles’ solution allows cascading invitations to be sent from
such as natural disasters, in relation to their supply chains. buyer to supplier and from suppliers’ suppliers ad infinitum,
helping to gather comprehensive information about the supply
· Provide the information and tools to support new compliance
chain and supplier compliance within it. Most industries share
initiatives
common suppliers, so what may be difficult to do for an individual
· Enabling the early detection of potential risks to allow for rapid
organisation becomes easier to achieve collectively.
mitigation
Supply Chain Mapping is beneficial for collecting information
on sub-suppliers, maintaining accurate supplier data, linking
relationships between the different tiers of a supply chain and
increasing the visibility of the chain as a whole to enable all parties
involved to understand where and how their goods are sourced. All
of this information comes together to create a complete map of a
buyer’s supply chain.

“Supply Chain Mapping is basically a visibility

tool. It is all about seeing what products are being
purchased in your supply chain, by whom and
where they are located.”
Jon Williams, Product Manager at Achilles

4
Part 1: Supply chain disasters in the media
Accounts of supply chain disasters have been prevalent in the Early 2015 saw the cumin shortage5 with warnings that cheap
media over the past few years. peanuts and almonds were secretly being used in dishes claiming
to contain more expensive cumin seeds to save money.
For example, the highly-publicised horse meat scandal of 2013 was
one of the largest food safety breaches ever experienced in Europe, The latest supply chain crisis reported in the media is the 35
with subsequent investigations and mapping into the supply chains per cent reduction from last year in the olive harvest in Italy due
of retailers discovering the forging of documents and contamination to deadly olive tree bacteria and one of the worst harvests for
of products3 several tiers down the chain. decades6. There are now warnings that the shortage could lead to
olive oil fraud.
In early 20157 a defect in an airbag component by one supplier
resulted in the recall of 34 million vehicles in the US. These are just some examples of the supply chain incidents
that have been brought to light by the media in recent years.
Brands including Findus and Tesco are still suffering from the
Each highlights the importance of transparency and reputable
knock-on impact of this, having had their reputations and
supply chains, which are at less risk of suffering from long-term
relationships with customers damaged as a result.
reputational damage in the event of an unforeseen disaster.
This was followed in 2013 by the fatal building collapse at Rana
Plaza in Bangladesh4, which resulted in a death toll of over 1,130,
while also causing supply chain disruption to many Western
retailers.

The core issues for both scandals were the lack of visibility and not
having rigorous audit processes in place.

2
Impact of the Disasters and Recovery Effects, Toyota Global, Annual Report 2012 http://www.toyota-global.com/investors/ir_library/annual/pdf/2012/p30_31.pdf 5
3
Horsemeat scandal: Dutch trader found guilty and jailed, April 7th 2015 http://www.bbc.co.uk/news/world-europe-32202995
4
Bangladeshi workers still missing eight months after Rana Plaza collapse, The Guardian, December 25th 2013
http://www.theguardian.com/world/2013/dec/25/bangladesh-workers-missing-rana-plaza
5
Is cumin shortage the new food scandal? Achilles, February 24th 2015 http://www.achilles.com/en/about-achilles/industry-insights/2111-is-cumin-shortage-the-new-food-scandal
6
Europe suffers olive oil disaster: How you can survive it, The LA Times, November 24th 2014 http://www.latimes.com/food/dailydish/la-dd-disastrous-olive-oil-harvest-20141124-story.html
Widespread automotive recalls highlight global supply chain risks, CIPS May 22nd 2015
7
Part 2: Are companies taking action?
What does the research show?
In 2014, research from Achilles and IFF7 found that 29 per cent of
firms are planning to map out their supply chain in the future, with
44 per cent of companies reporting that they had already mapped
theirs. This was an encouraging finding when taking the previous
year’s supply chain disasters into consideration. However, the
latest statistics from Achilles’ 2015 research show the number of
organisations mapping their supply chain remaining static over the
past 12 months, despite the previous apparent will to do so.
What’s more, it was found that 31 per cent of businesses had
never mapped their supply chain and had no intention of doing
so, although an additional 15 per cent said they had not yet, but
planned to in the future.
This is in the context of 65 per cent of respondents saying they
were in need of a more effective system for managing their complex
supply chains, with supply chain mapping being a potential option
to assist with lack of visibility.
7
Are you confident in your supply chain? Achilles http://www.achilles.com/en/achilles-infographic-are-you-confident-in-your-supply-chain
Regional results
Furthermore, just 13 per cent of buyers located in both the US and
the Nordics said they mapped their supply chains for more than
half of the products they used, meaning the origins of a significant
number of goods is not known, again putting firms at risk of serious
reputational damage.
Spanish buyers were similarly relaxed when it came to supply chain
mapping, with just one-fifth taking action to find out if there was any
bribery or corruption taking place among their suppliers.
While buyers hold financial reports, health and safety, anti-bribery
and corruption documentation for 69 per cent of potential main
direct suppliers before awarding a tender or contract, the numbers
dropped by 36 per cent for companies other than main suppliers.
Although due diligence is conducted for suppliers at tier 1 as a
standard procedure, in the Nordics, 29 per cent of companies hold
no key documentation past tier 1.The only way of gaining greater
understanding of the supply chain throughout lower tiers is to ‘map’
it, by using specialist technology and services to gain information
about exactly who suppliers are.
6
Which of these documents do you hold for the companies Sector differences
other than your main suppliers?
Varying procurement priorities were also uncovered among different
industries. For example, the research found that just six per cent of
0% 10% 20% 30% 40% 50% 60% 70%
buyers operating in the global construction industry took the time
45% to map more than half of their raw materials’ origins, and only one-
42% quarter of buyers in the utilities sector bothered to find out about
Financial 45% bribery and corruption in their supply chains.
reports 53%
44% Just seven per cent of firms in other sectors said that the horse
44% meat scandal had encouraged them to take a look at how they
oversaw their chains, while just 18 per cent of buyers in the FMCG
61% industry had changed the way they managed information relating to
61% their suppliers.
Health 68%
It was also found that only 29 per cent of FMCG buyers mapped
and safety 63%
their raw material supply chains, even though these companies
49%
were the ones most affected by the scandal two years ago.
67%

Do you map the supply chain for your products and services
37% down to your raw materials / grass roots supplier?
43%
Anti-bribery 43% Global
and corruption 40%
32% UK
20%
Brazil

21% USA
Yes No Don’t know
25% 62% 35% 3%
Nordics
None 17%
All Sectors
17% Spain
29%
9%

“It is a cause for concern that most large food Yes No

manufacturers are still struggling to improve 41% 59%
information about their suppliers after the horse Construction

meat scandal.”
Jon Williams, Product Manager at Achilles

Yes No
58% 42%
Oil & Gas

7
Part 3: Achilles’ Supply Chain
Mapping Solution
Jon Williams, who manages the Supply Chain Mapping Solution
from Achilles, believes the tool is perfect for those buyers without
deep knowledge of their supply chain. They are at risk of damaging
their reputation and brand name due to not knowing exactly where
their products are coming from, or how they arrive.
“One of the main challenges faced by buyers is
that they will know some risks within their supply
chain, but not all of their exposure to risks. Without
visibility of their chains they can’t really know them
all as they can’t see that information.
For example, if there’s a tsunami and a product
they sell has parts that come from far down that
chain, it could dramatically impact their ability to
supply, as well as their ability to find an alternative
supplier.”
Jon Williams, Product Manager at Achilles
Why it makes sense to outsource supply chain mapping
Any buyer can attempt to map their supply chain in-house, but it is
likely that this will take up a significant amount of time and resource
and the employees handling the process won’t necessarily have the
required expertise.
Outsourcing supply chain mapping allows a buyer to devote more
of its time to other areas of its business, while knowing its sub-
suppliers are being mapped by a neutral third-party specialised in
representing the buyer and mapping the chains.
Another common issue faced by buyers who attempt to map their
supply chains is that language barriers may arise from overseas
suppliers at lower tiers of the chain, presenting challenges in
obtaining information.
Jon explained: “Even among small businesses, and in industries
where you think it’s going to be a fairly local chain, tier 3 or 4 might
involve multiple international suppliers.”
At Achilles, we can take the time to collect this information in local
language from suppliers, and make it available to the buyer, without
the buyer needing local knowledge or language expertise. If the
buyer mapped it in-house, it would likely be a costly exercise and
cause disruption to other parts of the buyer’s business.
8
Not just a solution for buyers Communities can benefit as shared elements of supply chains
once confirmed don’t need remapping. Also suppliers in the
Achilles Supply Chain Mapping solution not only has advantages for
community have an increased awareness of issues affecting
buyers, but also for their suppliers at different tiers throughout the
particular parts of their chain.
chain.
Jon said: “It is important for buyers to remember that supply chain
“Mapping allows sub-suppliers themselves to see their own related
mapping is not about solving issues, but providing an effective tool
supply chains, allowing potential risks to be identified as early as
for increasing transparency of the risks, and making businesses
possible, so it is a continual improvement process throughout the
aware of exactly what is going on amongst their suppliers
chain,” Jon stated.
relationships, as well as where they are based.”
Achilles’ solution treats buyer and supplier relationships as more
Supply Chain Mapping from Achilles builds on the work that it does
of a web, rather than a linear chain, further helping to increase the
to carry out diligence checks and award pre-qualification status
visibility of any issues among a greater number of tiers.
to suppliers. This helps buyers make informed decisions about
The information discovered through supply chain mapping is visible choosing reputable firms to build relationships with. Something that
to the buyer initiating the process. They can access it in any way can assist in safeguarding their own reputation in the long term.
they wish, allowing global brand managers to access the risks
relevant to their brand.

Originating Buyer Buyer

Buyer A B

“1st Tier”
Suppliers

“2nd Tier”
Suppliers !

“3rd Tier”
Suppliers ! !

! “6 Months to source an alternative supplier”

! “Location susceptible to natural disasters”

! “Single point of convergence in your supply chain”

9
Conclusion
Supply chain mapping may be a relatively new concept to many,
but events such as the horsemeat scandal, Rana Plaza disaster,
and the challenges faced by the automotive industry following the
tsunami and earthquakes in Japan has led to companies becoming
very conscious of where their products come from and what exactly
happens to them before they reach their endpoint.

If you haven’t mapped your supply chain yet, then it is definitely

advisable to look into doing so straight away. The benefits of
Achilles’ Supply Chain Mapping solution include increased visibility
and transparency, as well as providing buyers with greater peace of
mind that they are working with the best possible suppliers for their
procurement needs.

Supply chain mapping allows risks to be identified early and

mitigating action put in place more rapidly, so preserving continuity
of supply

Remember that failure to do so could result in your brand name and

reputation being damaged for good. Even some of the world’s most
famous businesses have been caught out by disasters within their
supply chains.

In light of this, buyers should make sure their supply chains are as
transparent as possible, while encouraging the forging of strong
relationships among their suppliers throughout every tier.

If you’d like to discover more about how the Supply Chain Mapping
solution from Achilles could help to streamline your supply chain,
get in touch with one of the team today.

10
About Achilles
Achilles is one of the world’s largest service providers of global
supply chain risk management solutions with more than 1,000
people working in 22 countries.
We work on behalf of over 860 buying organisations from 11
industry sectors to collect, validate and maintain essential data
through an online questionnaire on 133,000 suppliers. This allows
buying organisations to build a picture of the risks present within
their supply chain and implement measures to protect their
business, people, planet and profit.
Suppliers joining an Achilles community gain a dedicated ‘shop
window’ with their services visible to some of the biggest buying
organisations in the world. With standardised requirements from the
relevant industry, suppliers can gain a clear understanding of what
steps they must take to be shortlisted for work.
Our solutions enable businesses to make informed, strategic
decisions to minimise cost and turn common industry challenges
into sources of competitive advantage.

We operate unique supply chain communities. Business leaders

from across industries work collaboratively to cut duplication
by agreeing the common standards suppliers need to meet in
order to be eligible to do business with them. This allows buying
organisations to raise standards consistently across all countries
in which they operate and easily connect with credible suppliers,
based in any country in which they would want to do business.

11
Achilles Group Limited
30 Western Avenue, Milton Park, Abingdon, Oxon OX14 4SH UK I T: +44 (0)1235 820813 I F: +44 (0)1235 821093 I E: enquiries@achilles.com I www.achilles.com

04-02/2016