Sub-Tier Mapping
Most mid-to-large manufacturing or services companies have a good understanding of internal weaknesses and external threats when it relates to their operations.
However, they have only a limited, partial, and sometimes outdated vision of the current supply chain weaknesses and threats their most critical suppliers or Tier 1 companies are facing. This becomes even murkier and opaque as one explores Tier 2, 3, and 4 risks.
A hotspot can occur due to limited capacity or production, low inventory, or a limited number of companies in a specific block of the value chain.
All this could result in major supply chain disruption and revenue loss, as witnessed in the semiconductor supply in 2021-2022.
There are also increased regulatory requirements for supply chain due diligence. The U.S. has initiated the UFLPA (Uyghur Forced Labor Prevention Act) to identify and restrict the use of forced labor. The German Act on Corporate Due Diligence Obligations in Supply Chains (Lieferkettensorgfaltspflichtengesetz, LkSG) and EU CSRD explore various indicators in organizations’ sub-tiers. This makes supply chain mapping a critical initiative for global, mid-large entities.
Addressing the Problem
Vertaeon’s sub-tier mapping first identifies various companies in each tier for the selected segments or suppliers. This complex and large-volume exercise is conducted from a strategic perspective. We can integrate any internal supply chain data to present a one-source, comprehensive map — with 20+ ESG indicators.
Identify and investigate the vulnerabilities in critical suppliers’ sub-tiers.
Assess whether the suppliers of your suppliers are reliable.
Ensure key sub-tier suppliers are ESG-compliant.
Critical Insights for Risk Management
Our solution uses machine learning and AI for predictive modeling, forecasting, and optimization. Risks can be predicted based on several interacting factors, such as reliance on certain industries or end-users and raw material availability.
With this customized sub-tier mapping, your company can:
initiate discussion on contingency plans with your suppliers
take proactive actions to maintain a leading position.
gain a competitive advantage by limiting sourcing cost and eventual scarcity.
Plus, use our supply chain risk analytics to improve visibility into your overall risk, from geopolitical influences to market demand.