Measures the extent to which sourcing risks, such as supplier disruptions or material shortages, are identified and mitigated.

What it Measures ?

Share of suppliers diversified to reduce sourcing risks.

Relevant StakeHolders 

Risk Analyst, Procurement Head

In-depth Use Case / Real-world Example

A company manufacturing high-end furniture calculates Sourcing Risk Coverage by evaluating how well it addresses potential sourcing risks. For example, if the company has alternate suppliers or backup materials for 80% of its key components, it has 80% sourcing risk coverage. This KPI helps ensure the supply chain remains resilient in the face of supplier disruptions.