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Tool Gate · How it works

How the roll-up gate works

How the Supplier Concentration Risk gate works

This tool grades a supply base's spend concentration and single-source exposure. It reads 6 suppliers and rolls them into one verdict — the worst, never the average — then a gate that can only make it worse.

The 6 suppliers

01Sole-source manufacturerfix first31% of spend · no contract · gate firedSINGLE-SOURCE RISK
02Primary component vendor20% of spend · contracted, no alternateEXPOSED
03Secondary materials19% of spend · has an alternate sourceEXPOSED
04Packaging vendor12% of spend · has an alternate sourceSECURED
05Logistics / freight10% of spend · contracted + alternateSECURED
06Specialty coating8% of spendSECURED
SUPPLY SECURE
every supplier SECURED
WATCH THE BASE
worst supplier is EXPOSED - elevated share, gate hasn't fired
SUPPLY-SHOCK RISK
any supplier crosses the uncontracted-concentration line
Uncontracted-concentration gate · worsen-only

A supplier crossing 18% of total spend (or 25% with a qualified alternate source) with no signed contract is forced to SINGLE-SOURCE RISK regardless of its share score, and one SINGLE-SOURCE RISK supplier flips the whole base to SUPPLY-SHOCK RISK.

SUPPLY-SHOCK RISK

Why: Six suppliers, $1,000,000 in total spend. The sole-source manufacturer carries 31% of it with no signed contract - past the 18% uncontracted line - so it's forced to SINGLE-SOURCE RISK even though two other vendors also carry double-digit shares. One supplier crossing that line is enough to flip the base. 1 of 6 suppliers SINGLE-SOURCE RISK · worst-not-average · largest share 31%.

Fix firstSole-source manufacturer - get it under a signed contract (or qualify a second source) before next quarter; it's the only supplier that trips the gate.

No single supplier is the crisis — the clustering is. The roll-up takes the worst, the gate escalates when trouble compounds, and it names the one thing to fix first. Grades a supply structure from the numbers you enter; connects to nothing and isn't financial, accounting, or investment advice.