eyko Ideas
Spend efficiency and resilience pull in opposite directions. Supplier Concentration Risk Analysis shows where dependence on a few suppliers has quietly become a single point of failure.
The Challenge
A category can look healthy while almost all of its spend runs through one supplier.
A single-source critical category carries no warning until the supplier actually fails.
Sourcing optimizes for price and leverage, and nobody balances that against the disruption risk it builds.
How eyko Solves It
Supplier Concentration Risk Analysis reads spend and sourcing by supplier and category, surfaces where concentration exceeds tolerance, flags the single-source critical categories, and recommends where a second source is worth the cost.
The top five suppliers account for 38 percent of total spend, and one critical category is 90 percent single-sourced. A disruption to that one supplier stops a production line, not just a purchase order.
| Metric | Current | Benchmark | Status |
|---|---|---|---|
| Primary indicator | Flagged | Target | Action needed |
| Secondary indicator | Monitoring | Within range | On track |
| Trend direction | Declining | Stable | Review required |
Supplier concentration risk analysis reads spend and sourcing by supplier and category to show where dependence has built up. The Playbook surfaces the share of spend held by the largest suppliers and the categories that have quietly gone single-source, so procurement sees the exposure before a disruption forces it into view.
This is decision intelligence in practice: the what, the why, and the what next from your live data.
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View IdeaFAQ
Everything you need to know about Supplier Concentration Risk Analysis.
Supplier concentration risk analysis reads spend and sourcing by supplier and category and surfaces where dependence on a few suppliers has become a single point of failure. eyko flags the single-source critical categories and recommends where a second source is worth the cost, so resilience improves without giving up sourcing leverage.
It reads your spend and purchase-order detail by supplier and category from your ERP and procurement system, alongside the supplier master and any data platform you already run. It works with systems such as SAP, Coupa, Oracle, and NetSuite, and there is no separate data project to start.
The Playbook measures each category against a concentration ceiling, the share of spend you are comfortable routing through a single supplier, and flags the categories that exceed it. The ceiling is configurable, so a critical production input can carry a tighter tolerance than a commodity category.
Yes. The Playbook ranks the exposures by impact, putting the single-source critical categories first, so procurement qualifies a second source where a disruption would hurt most rather than spreading dual-sourcing effort evenly across the book.
Join the enterprises replacing weeks of manual analysis with a single prompt. See what eyko Playbooks can do with your data.
