Supplier Concentration and Dependency Analysis

Service Overview

This service analyses how purchasing and operational inputs depend on particular suppliers, locations or supply groups. It shows where concentration exists and how recorded alternatives, lead times and sourcing patterns affect the interpretation of that dependency.

Key Objectives

• Quantify supplier concentration, identify dependencies visible in existing records and distinguish purchasing expenditure concentration from dependency on operationally significant materials or services.

Approach & Methodology

Supplier, spend and item records are linked with available sourcing and lead-time information. We calculate concentration measures, examine relevant groupings and document dependency patterns, identifying where incomplete alternative-source information limits conclusions about the observed exposure.

Expected Outcomes & Value

Management gains a clearer view of supply dependencies that spending totals alone may conceal, supporting informed discussion of concentration and the evidence needed for further evaluation.