How to perform a supply chain SWOT Analysis?

In this brief post, we will take a look at Supply Chain Mapping, as recommended by The Strategists Network:
1) The Supply Chain is mapped and analyzed from all angles.
2) The strengths, weaknesses, opportunities, and threats of the Supply Chain are identified.
3) The corresponding strategies are developed.

1) The Supply Chain is mapped and analyzed from all angles. The process starts by looking at all components of the company’s supply chain, which includes all the participants, processes and resources that make up the supply chain. What are the main components of the supply chain? Can we spot any patterns in how the company works? What does it take to take the product from raw material, through production, warehousing and distributors, to the customer? These and other questions should help us create a multidimensional picture of the company’s supply chain and the first insights for the next step should already start to slowly emerge.

2) The strengths, weaknesses, opportunities, and threats of the Supply Chain are identified. With a clear multidimensional view of the company’s supply chain, the first strengths and weaknesses should emerge in a logical and clear manner. The strengths and weaknesses – one half of the SWOT Analysis – is the internal half of the analysis. We must take an honest look into what the company does well (and what not so well) in managing its supply chain. Are there any holes, inefficiencies or concerns that should be patched up? Secondly, we focus on the external half of the SWOT Analysis, the opportunities and threats around the company’s supply chain. For example, opportunities may include potential M&A targets or new technologies and threats may include changing consumer habits or new regulation. Any of these may impact the company in unforeseen ways.

3) The corresponding strategies are developed. Lastly, our takeaways from the previous step should serve as concise inputs for developing strategies towards what the company wishes to accomplish. If the previous steps were completed carefully and thoroughly, the strategies we develop will surely leverage the power of the supply chain’s strengths, weaknesses, opportunities and threats (SWOT).