Value Stream Mapping is a proven technique used to identify waste / improvement opportunities within manufacturing. The same technique can be applied to the food supply chain. The maps provide a practical, graphical, and data driven view that can be used to understand potential problem areas such as:
- Alignment of production locations to shifting global demand.
- Network flexibility and alternative network designs
- Number of loads and unloads for typical product journeys
- Average time in stock at locations
- Tradeoffs of alternative replenishment options to meet service level demands vs elevated stocking levels.
Unlike traditional supply chain views, the value stream maps provide pictorial representations for the end to end flow of product. Key flow data and control signals that are captured throughout the mapping can provide input into cross functional /cross company discussions to enable the overall optimization of the food supply chain.
Critical to the discussion is a focus on the information flows in addition to the material flows. Below is a sample of a value stream map. Often, to encourage interactions we will place full sized versions of the maps on a wall in a collaboration space and then have a working copy that is periodically used to update the wall sized version.
To be successful with the value stream mapping exercise we suggest:
- Develop SCOR metrics
- Pre Develop a general supply chain map such as indicated in the Business Strategy Alignment (link here) so that the conversation can focus on the areas of waste
- Be sure to free up the time
- Establish a continuous improvement program that focuses on eradicating the waste.