A SIPOC analysis helps to show the dependencies between the processes in a sup-

ply chain. A good way to illustrate a SIPOC is to look at the process of picking

orders in a fulfillment center:

» Suppliers include the receiving department, which puts inventory into the

warehouse, and the warehouse management system, which keeps track

of inventory.

» Inputs include the products that are stored in inventory, along with instruc-

tions about where to find the products in the warehouse.

» Process in this case could be “Pick item from inventory.” You could also break

the process down into detailed steps, such as “Print pick sheet, travel to first

pick location, place item on cart,” and so on.

» Outputs could include the item that is picked, where it is delivered, and

how long it takes to complete the process. The outputs might also include

updating the warehouse management system and creating a packing list for

the shipment.

» Customers in this case will be the shipping department, which is responsible

for the next process in the supply chain.

This example shows that you can think about a supply chain as being a series of

SIPOCs. The customer from one process is the supplier for the next process.

The shipping department is the customer of the picking process, but in the next

process — shipping — the shipping department is the supplier, and the transpor-

tation provider is the customer

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