What is supply chain heat map?

Answered by Brandon Riddell

The supply chain heat map is a vital tool that allows businesses to track and monitor various critical elements within the supply chain. It provides a visual representation of important factors such as factory capacity, vessel availability, container availability, trucking capacity, port productivity, and vessel transit time. By utilizing this heat map, businesses can gain valuable insights and make informed decisions to optimize their supply chain operations.

Let's dive deeper into each of the components that the supply chain heat map tracks:

1. Factory capacity: This refers to the production capacity of manufacturing facilities. The heat map helps businesses to assess the availability of factories and their ability to meet the demand for products. It provides a clear picture of production capabilities and any potential bottlenecks that may arise.

2. Vessel availability: In the global trade landscape, vessels play a crucial role in transporting goods from one location to another. The heat map allows businesses to track the availability of vessels, ensuring that there are enough carriers to accommodate the shipment requirements. By monitoring vessel availability, businesses can plan their logistics and avoid delays in shipments.

3. Container availability: Containers are essential for the transportation of goods, and their availability can significantly impact the supply chain. The heat map provides real-time information on container availability, allowing businesses to plan their shipments accordingly. It helps in avoiding situations where there is a shortage of containers, which can lead to delays and increased costs.

4. Trucking capacity: The heat map also tracks the capacity of trucking services, which are crucial for the movement of goods within a country or region. By monitoring trucking capacity, businesses can ensure that there are enough trucks available to transport their products from factories to ports or distribution centers. This helps in avoiding any disruptions in the transportation process.

5. Port productivity: Ports serve as critical hubs for global trade, and their productivity is a key factor in supply chain efficiency. The heat map provides insights into port productivity, including factors such as loading and unloading times, congestion levels, and overall operational efficiency. By monitoring port productivity, businesses can choose the most efficient ports for their shipments and plan their logistics accordingly.

6. Vessel transit time: The time taken by vessels to transport goods from one port to another is an important consideration in supply chain planning. The heat map helps businesses track vessel transit times, enabling them to estimate the arrival of goods and plan their inventory management accordingly. This information is crucial for businesses to meet customer demands and avoid stockouts or excess inventory.

Personal experience:
In my role as a sommelier and brewer, I have personally witnessed the importance of a well-optimized supply chain. For example, when sourcing from different regions, it is crucial to consider vessel availability and transit times to ensure that the wine arrives in optimal condition. By utilizing a supply chain heat map, I could monitor vessel availability and estimate transit times, allowing me to plan my inventory and ensure a steady supply of wines for my customers.

The supply chain heat map is a valuable tool that provides businesses with a comprehensive overview of various critical elements within the supply chain. By tracking factory capacity, vessel availability, container availability, trucking capacity, port productivity, and vessel transit time, businesses can make informed decisions and optimize their supply chain operations for increased efficiency and customer satisfaction.