Work out single source risk exposure instantly with clear inputs, formula shown and shareable results.
Single-source exposure is the gap between the time needed to qualify an alternative and the inventory cover you hold, valued at the revenue that depends on the supply. That gap in weeks, not the annual spend, is the number that justifies dual sourcing or strategic stock.
Exposed weeks
Exposed = Qualification lead time in weeks - Inventory cover weeks
Revenue at risk
Revenue at risk = Annual revenue / 52 x Exposed weeks
Inventory is faster and cheaper to arrange; dual sourcing is more durable. High-value, long-qualification items usually justify both.
Then the exposure is structural and needs a strategic response: design change to a more available component, or a formal supply agreement with capacity guarantees.