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PACKIQ · Procurement · 4 credits

Supplier Concentration Risk Analyser

Score supplier concentration risk, model disruption cost, and rank dual-source priorities

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What it does

Submit your packaging supplier list with annual spend and category. The Supplier Concentration Risk Analyser calculates the HHI concentration score per category, models the financial impact of a 4-week and 12-week disruption for each top supplier, and ranks dual-source development priorities by exposure and feasibility.

Example use case

A packaging manager submits spend data for 9 suppliers. The analyser identifies corrugated as HIGHLY CONCENTRATED (HHI 4,200 — single supplier 65% of category). A 12-week disruption from that supplier would cost £420,000 in spot premiums and production delays. It ranks the corrugated category as top dual-source priority and suggests 3 qualifying alternate converters.

Frequently asked questions

What is the HHI score?
Herfindahl-Hirschman Index — sum of (market share%)² across suppliers in a category. <1,500 = low risk; >2,500 = high risk; 10,000 = single source.
How is disruption cost calculated?
Disruption cost = volume affected × spot premium (typically 20–35% above contract for corrugated) + production stoppage cost.
What does 'dual-source priority' mean?
The recommended order for qualifying alternate suppliers — ranked by total exposure and lead time to onboard a new supplier.

Related searches

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4 credits per run · Grounded in live PackIndex data · Result in under 2 minutes

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