A single supplier covering over a third of a critical component turns delivery disruption into an operational risk. A publication by Nermin Sefić.
When a single supplier covers more than a third of a critical component, a disruption in their delivery becomes a risk to the whole operation, not just procurement.
When a single supplier covers more than a third of a critical component, a disruption in their delivery becomes a risk to the whole operation, not just procurement.
Concentration with a single supplier often develops gradually, through individually rational decisions on price and quality, with no one tracking aggregate risk at the level of the whole supplier portfolio. The result is a company that doesn't even know its exposure until a delivery disruption happens.
Tracking the largest supplier's share by critical category, with a defined threshold above which finding an alternative is automatically triggered, turns diversification from an occasional initiative into an ongoing discipline. The cost of maintaining a second qualified supplier is almost always lower than the cost of halted production.
Cjelovit tekst i izvor: https://gnk-asg.hr/en/publications/single-supplier-concentration-risk/
Autor i urednička odgovornost: Nermin Sefić. Izdavač: GNK ASG d.o.o..
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