Free supply-risk tool

Supplier Concentration Calculator

Measure how dependent your business is on major suppliers, then identify where concentration, criticality and weak backup coverage create the greatest operational exposure.

Simple concentration

Enter supplier exposure

6 suppliers

Supplier spend or exposure amount

SupplierAnnual spend / exposure

Concentration mathSupplier share = supplier amount ÷ total amount. Top 3 concentration is the combined share of the three largest suppliers. HHI = the sum of each supplier share squared × 10,000. Effective supplier count = 10,000 ÷ HHI.

Supplier ranking

Concentration by supplier

Sorted by exposure share

Rank	Supplier	Exposure amount	Share	Cumulative share	HHI contribution

Advanced supply risk

Add operational dependency factors

8 suppliers

Diversification targets

Maximum desired supplier share

Maximum desired Top 3 share

Single-source backup threshold

Critical suppliers below this backup coverage are flagged as single-point exposure.

Operational-risk weights

Criticality

Replacement difficulty

Supply risk

Lead time

Single source

Supplier inputs

SupplierSpendCriticalityReplace difficultySupply riskLead daysBackup coverageSingle source?

Risk scales: Criticality, replacement difficulty and supply risk use 1 = low and 5 = high. Lead-time risk reaches its maximum at 120 days. Backup coverage represents the share of this supplier's dependency that could realistically be covered by inventory, alternate suppliers or another contingency.

Advanced exposure modelEach supplier receives a 0–100 operational risk score from the normalized risk weights. Residual risk = operational risk × uncovered dependency after backup coverage. Portfolio operational risk and residual disruption exposure are spend-weighted averages across suppliers.

Exposure ranking

Supplier concentration and operational risk

Sorted by residual disruption contribution

Rank	Supplier	Spend	Share	Risk score	Backup coverage	Residual risk	Residual contribution	Share-target gap

Supplier-loss scenarios

Exposure if one supplier is disrupted

Backup coverage reduces uncovered dependency

Supplier lost	Spend share	Backup coverage	Uncovered spend	Uncovered share	Operational risk	Disruption severity index

Diversification sensitivity

Spend to rebalance at different supplier-share caps

Assumes excess spend can move to suppliers below the cap

Maximum supplier share	Suppliers above cap	Spend to reallocate	Share of portfolio to reallocate

Backup sensitivity

Residual exposure as contingency coverage improves

Adds the same coverage improvement to every supplier, capped at 100%

Backup improvement	Weighted backup coverage	Residual disruption exposure	Reduction vs current

Scope

Concentration is only one part of supplier risk

HHI and supplier shares measure concentration, not the probability that a supplier will fail. The operational-risk score depends on the subjective inputs entered for criticality, replacement difficulty, supply risk, lead time and backup coverage. The concentration bands shown here are directional OfficeQ planning signals, not regulatory classifications. Validate actual contracts, inventory, alternative-source qualification, logistics, geographic dependencies, financial health and business-continuity plans before making sourcing decisions.