Strategic Supplier Coverage measures how well an organization’s critical sourcing needs are met through reliable, long-term partnerships with strategically selected suppliers.

What it Measures ?

What portion of our suppliers are considered business-critical.

Relevant StakeHolders 

Procurement Planners, Strategy Teams

In-depth Use Case / Real-world Example

Imagine a manufacturing company that produces construction equipment like cranes and bulldozers. These machines require precision components—such as engines, steel frames, control systems, and hydraulic cylinders. Not every supplier can deliver these high-quality parts consistently, at scale, and on time. Strategic Supplier Coverage ensures that the company’s most important materials and components are secured through carefully selected, dependable suppliers who align with business goals. These are not just transactional vendors—they are trusted partners chosen based on their capabilities, quality, stability, innovation, and long-term fit. For example, if the company has 10 critical components required to build a machine and 8 of those are sourced through vetted, long-term strategic suppliers, the strategic supplier coverage is 80%. This metric helps the business assess how well-protected it is from risks like supply disruptions, sudden price hikes, or quality failures. High strategic supplier coverage means: Fewer surprises during production. Better contract terms and pricing stability. Stronger collaboration for product innovation or process improvement. Faster problem resolution in case of delays or shortages. Strategic Supplier Coverage is often improved by performing regular supplier evaluations, risk assessments, and building joint plans with suppliers. It also supports diversification—ensuring the company isn’t overly dependent on a single vendor. In short, this metric reflects how well the procurement team has prepared the supply base to support current operations and future growth in a stable, cost-effective, and risk-aware manner.