amfori Multi-Tier Supply Chain Mapping

by amfori created 2024-12-23T17:27:40+07:00
The amfori Multi-Tier Supply Chain Mapping Feature was launched in late 2023 as part of the amfori Sustainability Platform to enhance supply chain visualisation and transparency. Staying true to amfori's collaborative approach, this project is being developed in close partnership with our members to ensure it delivers tailored solutions that effectively address their needs.

Understanding Multi-Tier Supply Chain Mapping

A multi-tier supply chain includes a network of suppliers, manufacturers, and service providers involved in making and delivering a product. Unlike a single-tier supply chain, which focuses only on direct suppliers, multi-tier supply chains go further, including second-tier, third-tier, and even raw material suppliers. Each tier represents a different stage in the production process, where suppliers provide materials, parts, or services specific to their role. Multi-tier supply chains involve more layers of suppliers, often across different countries and industries.

Benefits of Multi-Tier Supply Chain Mapping

Mapping a multi-tier supply chain helps businesses understand their entire supply network, from immediate suppliers to those further along the chain. This gives businesses a clearer view of their operations, helping them find risks and opportunities for improvement.

The main benefits include:

  • Better transparency: Mapping multiple supply chain layers gives businesses a deeper view of their operations, helping them understand the impact on society and the environment
  • Stronger supplier relationships: Working closely with suppliers can improve efficiency and performance
  • Risk management: Businesses can spot and manage environmental, social, and ethical risks more effectively
  • Compliance with standards: Ensure your supply chain meets industry regulations and sustainability guidelines
  • Improved sustainability: Reducing the environmental and social impact of supply chain activities

2024 Milestone: Member Supplier Category

In March 2024, a major milestone was reached with the introduction of the Member Supplier category. This category identifies amfori members who contribute to another member's supply chain by supplying goods or services without engaging in manufacturing. Member suppliers may operate as agents, distributors, or importers.

The introduction of this category also includes clear guidelines for invitation, acceptance, and rejection, ensuring transparency in the process, ensuring a structured and transparent framework for participation.

 

amfori Multi-Tier Supply Chain Mapping: What is the next step?

The next phase is the launching of the new functionalities, primarily a multi-tier supply chain mapping tool, expected in 2025. This tool will enable companies to map their product supply chains in a tier-by-tier process. Users can create a product, select the relevant business partners involved, and invite them to extend the mapping further down the supply chain. The result will be a comprehensive product supply chain visualisation, empowering members to gain deeper insights into the origins of their products and components and to conduct more effective due diligence.

 

Be proactive: Get started with the amfori Multi-Tier Supply Chain Mapping

To get started with the new functionalities on the amfori Sustainability Platform, please refer to the Member Supplier Category Guide.

To assist with navigating the processes of invitation, acceptance, and rejection for the Member Supplier category, we have developed a dedicated eLearning module available on the amfori Academy.

Looking ahead to 2025, we will continue to advance this initiative and will share updates soon on the next steps. Stay tuned for more information!