How the supplier risk score works
Each supplier's score is the sum of 5 named factors, out of 100. Nothing is hidden in a formula: the register shows every factor next to the total, so anyone can see why a supplier ranks where it does and challenge it.
The factors
| Factor | Up to | How it's worked out |
|---|---|---|
| Spend share | 40 | 40 × the supplier's share of total spend |
| Single source | 20 | 20 if there is no alternative supplier |
| Criticality | 20 | High 20, medium 10, low 0 |
| Country concentration | 10 | 10 × the share of total spend in the supplier's country |
| Missing data | 10 | 2.5 for each blank: country, spend, single source, criticality |
Worked example
Northwind Steel (sample) is a high-criticality, single-source supplier in Germany with 25.2% of total spend. 34.2% of all spend is in Germany.
| Spend share | 10.1 |
| Single source | 20 |
| Criticality | 20 |
| Country concentration | 3.4 |
| Missing data | 0 |
| Risk score | 53.5 |
Why these factors
- Spend share is the simplest measure of how much of your business depends on one supplier.
- Single source matters because there's nowhere to go quickly if that supplier fails.
- Criticality is your own judgement of the impact, which spend alone can miss (a cheap part can stop a line).
- Country concentration catches exposure to one country's disruptions, trade rules or logistics.
- Missing data counts because a blank is an unknown, and unknowns are where surprises come from.
Use the score to decide where to look first, then check those suppliers properly. It reflects only the columns in your file; it knows nothing about a supplier's finances, performance or news. It is not financial, legal or compliance advice. If your team weighs factors differently, change the points in the exported spreadsheet.
A spreadsheet goes stale. Keep the register live.
In Qeluntra, risk is scored when a supplier arrives through source-to-pay and onboarding, so the register is a view over the live record rather than a document someone refreshes.
Keep this register live in Qeluntra, free Guide: register columns and scoring
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