--- title: How to conduct effective supply chain analysis in three steps | TMH UK description: Here are the steps your business should take when it comes to undertaking a supply chain analysis to improve profitability. image: https://blog.toyota-forklifts.co.uk/hubfs/Optimized-AdobeStock_300542972-1.jpeg --- [Skip to content](https://blog.toyota-forklifts.co.uk/how-to-conduct-effective-supply-chain-analysis#main-content) [Go to toyota-forklifts.co.uk](https://toyota-forklifts.co.uk/) [| Blog](https://blog.toyota-forklifts.co.uk/) [Covid-19 Update](https://toyota-forklifts.co.uk/about-toyota/news-and-editorials/our-commitment-to-supporting-the-logistics-of-vital-supplies/) [Brexit Statement](https://toyota-forklifts.co.uk/about-toyota/news-and-editorials/brexit-impact-statement/) Customer Service [Customer Service](https://toyota-forklifts.co.uk/customer-support/customer-service/) [Contact local Sales office](https://toyota-forklifts.co.uk/customer-support/contact-us/) [FAQ](https://toyota-forklifts.co.uk/customer-support/faqs/) **Call us** New & used trucks: 0370 850 1409 Service support: 0370 850 1402 Rental: 0370 850 1403 Parts support: 0370 850 1404 Operator training: 0370 850 1405 **Open Hours** Mon - Fri: 9am - 5pm [Send us an e-mail](https://toyota-forklifts.co.uk/customer-support/contact-us/), we will get back to you. 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[\< Back to blog](https://blog.toyota-forklifts.co.uk/blog) May 18, 2022 # How to conduct effective supply chain analysis in three steps. 3 minutes to read [Blogs](https://blog.toyota-forklifts.co.uk/tag/blogs), [Supply Chain Management](https://blog.toyota-forklifts.co.uk/tag/supply-chain-management) ![conducting a supply chain analysis](https://blog.toyota-forklifts.co.uk/hubfs/Optimized-AdobeStock_300542972-1.jpeg) Supply chain analysis is the process of evaluating every stage of the supply chain to identify issues and opportunities in your business. By analysing your supply chain, you can also improve its management, as well as its cost and operational efficiency — all allowing you to gain a competitive advantage. ![conducting a supply chain analysis](https://blog.toyota-forklifts.co.uk/hs-fs/hubfs/Optimized-AdobeStock_300542972-1.jpeg?width=952&name=Optimized-AdobeStock_300542972-1.jpeg) This article runs through the three steps you need to take to conduct an effective [supply chain analysis](https://blog.toyota-forklifts.co.uk/how-to-conduct-effective-supply-chain-analysis) and these include:   - [Map the supply chain.](https://blog.toyota-forklifts.co.uk/how-to-conduct-effective-supply-chain-analysis#a1) - [Review your costs.](https://blog.toyota-forklifts.co.uk/how-to-conduct-effective-supply-chain-analysis#a2) - [Put your plan into action.](https://blog.toyota-forklifts.co.uk/how-to-conduct-effective-supply-chain-analysis#a3) ## Map the supply chain. Supply chains are made up of multiple layers of activities and stakeholders. The first step of a supply chain analysis involves mapping out all of these activities, stakeholders and anything else that can impact profitability. When mapping out your supply chain, some critical factors to consider include production facilities, [warehouse design](https://blog.toyota-forklifts.co.uk/considerations-of-a-sustainable-warehouse-design), transport logistics and suppliers. It is important to remember that supply chain mapping is not just a one-off exercise — it is an ongoing activity you should undertake as elements of your supply chain change over time. There are certain lean tools and techniques that can help you get started when mapping out your supply chain to identify value. Discover what these are[here](https://blog.toyota-forklifts.co.uk/the-best-lean-production-tools-and-techniques-to-implement).   ## Review your costs. There are five main cost drivers in a supply chain. These are investment, transportation, procurement, production and inventory costs. As part of your supply chain analysis, you should review these costs and [devise initiatives to reduce them](https://blog.toyota-forklifts.co.uk/strategies-for-reducing-costs-in-your-supply-chain). These initiatives include streamlining order processes, managing inventory more efficiently, monitoring customer demands and [embracing automation](https://blog.toyota-forklifts.co.uk/a-quick-guide-to-warehouse-automation). Once you have mapped out your supply chain, reviewed your costs and identified solutions, the final step involves putting your plan into action. [![supply chain management](https://no-cache.hubspot.com/cta/default/9392426/8aa6ac71-0bc0-4c5b-96f8-f4ae78afc1c7.png)](https://cta-redirect.hubspot.com/cta/redirect/9392426/8aa6ac71-0bc0-4c5b-96f8-f4ae78afc1c7) ## **Put your plan into action.** The final step in the process — executing your plan. At this stage, you should begin implementing all the [solutions and strategies](https://blog.toyota-forklifts.co.uk/strategies-for-maximising-supply-chain-surplus-successfully) you have identified. For example, you might have plans to automate more areas of your warehouses to meet specific goals related to inventory efficiency. As you begin to implement solutions, it is worth following lean production methodologies such as Kaizen. This is a strategy focused on continuous improvement. [Kaizen’s ultimate goal](https://mag.toyota.co.uk/kaizen-toyota-production-system/) is to ensure maximum quality, fast-track waste elimination and [improve efficiencies](https://blog.toyota-forklifts.co.uk/what-does-an-efficient-supply-chain-really-look-like), both in terms of equipment and work procedures. Efficient supply chain execution can offer your business many benefits, including fast and accurate order fulfilment, reductions in costs and inventory, ultimately leading to a competitive advantage.  However, to achieve an efficient supply chain, you need to carefully consider strategy. That is where our supply chain profitability playbook can help.     ## **Discover the most effective strategies to improve revenue through supply chain management.** Supply chain analysis is the first step to achieving supply chain profitability. Once you have a clear picture of what is working well and how you can make improvements, it all comes down to the strategies you embrace. To help you get started, we have created a playbook that offers guidance on embracing strategies such as optimising operating expenses and reducing errors and breakages. Find out more about these strategies and how to build a profitable supply chain by accessing your copy below. **[![supply chain playbook](https://no-cache.hubspot.com/cta/default/9392426/208874dc-1c66-4037-8efc-22fb9f0f675f.png)](https://cta-redirect.hubspot.com/cta/redirect/9392426/208874dc-1c66-4037-8efc-22fb9f0f675f)** ### About Toyota - [Who we are](https://toyota-forklifts.co.uk/about-toyota/who-we-are/) - [Why buy a Toyota](https://toyota-forklifts.co.uk/about-toyota/why-buy-toyota/) - [Design Centre](https://toyota-forklifts.co.uk/about-toyota/design/) - [Logistic Solution Centre](https://toyota-forklifts.co.uk/about-toyota/logistics-solutions-centre/) - [Work at Toyota Material Handling](https://toyota-forklifts.co.uk/join-the-team/) - [PR and News](https://toyota-forklifts.co.uk/about-toyota/news-and-editorials/) - [Pension Scheme Governance](https://toyota-forklifts.co.uk/pension-scheme-governance/) - [Compliance Documents](https://toyota-forklifts.co.uk/about-toyota/compliance_documents/) ### Toyota values - [The Toyota Way](https://toyota-forklifts.co.uk/toyota-lean-academy/the-toyota-way/) - [Toyota Production Systems (TPS)](https://toyota-forklifts.co.uk/about-toyota/toyota-production-system/) - [Sustainability](https://toyota-forklifts.co.uk/about-toyota/sustainability/) - [Code of conduct](https://media.toyota-forklifts.eu/published/21528_Original%20document_toyota%20mh.pdf) ### Partners - [Our dealer network](https://toyota-forklifts.co.uk/about-toyota/our-dealer-network/) ### Customer service - [Contact us](https://toyota-forklifts.co.uk/customer-support/contact-us/) - [Delivery](https://toyota-forklifts.co.uk/customer-support/shipping--delivery/) - [Warranty & Return policy](https://toyota-forklifts.co.uk/customer-support/warranty/) - [How to buy online](https://toyota-forklifts.co.uk/customer-support/how-to-buy-online/) - [FAQs](https://toyota-forklifts.co.uk/customer-support/faqs/) - [Terms & Conditions](https://toyota-forklifts.co.uk/legal/terms-and-conditions/) - [Privacy policy](https://toyota-forklifts.co.uk/legal/privacy/) - [Cookie policy](https://toyota-forklifts.co.uk/legal/cookie-policy/) - [Cookie settings](https://toyota-forklifts.co.uk/legal/cookie-settings/) Follow us on [Facebook](http://www.facebook.com/ToyotaMHUK/) [Twitter](http://twitter.com/intent/follow?source=followbutton&variant=1.0&screen_name=ToyotaMH_UK) [LinkedIn](http://www.linkedin.com/company/toyota-material-handling-uk) [YouTube](http://www.youtube.com/user/toyotamhuk?sub_confirmation=1) [Pinterest](http://www.pinterest.com/toyotaMHEurope/) Prices valid for Online orders only. 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