Local Supply Chain Resilience Score

Measure how sturdy your local supply chain is against disruption. This model weighs supplier diversity, average lead times, safety stock coverage, geopolitical exposure, and dual sourcing so you can spot weak links before they translate into stockouts.

Count qualified suppliers covering at least 80% of spend.
Door-to-door replenishment time from order to receipt.
Inventory buffer available above cycle stock.
Use an internal or external risk index where 10 reflects severe instability.
Leave blank to assume 30% of spend is covered by two or more suppliers.

Advisory metric only. Combine with qualitative supplier reviews before adjusting procurement strategy.

Examples

  • Regional manufacturer: 3 suppliers, 28-day lead time, 18 days of safety stock, geo risk 6, dual sourcing 0.25 ⇒ Supply chain resilience score: 42.95% (Needs monitoring). Focus: Improve lead time resilience and broaden dual sourcing coverage.
  • Distributed network: 6 suppliers, 14-day lead time, 21 days safety stock, geo risk 3, dual sourcing 0.60 ⇒ Supply chain resilience score: 80.33% (Resilient). Focus: Maintain contingency plans and continue monitoring regional indicators.

FAQ

How can I raise a low score?

Qualify additional suppliers in different regions, negotiate shorter lead times through nearshoring, or expand safety stock coverage for critical SKUs.

What does the geopolitical risk input represent?

Use an average of country risk indices or internal risk assessments on a 0-10 scale, where 10 signals severe instability and higher probability of disruption.

Does the model account for supplier financial health?

Not directly. Incorporate financial risk into the geopolitical score or adjust the dual sourcing share to discount fragile vendors.

Additional Information

  • Supplier score uses a logarithmic curve so early diversification yields bigger gains than later additions.
  • Safety stock is normalised against lead time; holding inventory equal to or greater than the lead time maximises the buffer credit.
  • Dual sourcing reflects the share of spend with at least two qualified suppliers and is capped at 100%.

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