Measures the extent to which strategic suppliers are integrated into key supply chain processes.
What it Measures ?
Percentage of key suppliers in long-term contracts.
Relevant StakeHolders
Procurement Manager, Vendor Relationship Head
Why it Matters ?
Ensures supplier reliability and long-term relationships.
In-depth Use Case / Real-world Example
A company manufacturing industrial robots calculates Strategic Supplier Coverage by evaluating how well it engages and collaborates with key suppliers on long-term contracts and critical materials. For example, if 75% of the company’s key raw materials are sourced from strategic suppliers with long-term agreements, the Strategic Supplier Coverage is 75%. This helps ensure strong, reliable supply chain relationships.
Sample Formula
Percentage of Critical Suppliers in Long-Term Contracts