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Supplier Shortlists

Part of Responsible and resilient sourcing

Mapping dependence on one factory or material

Trace a product to critical factories and inputs, identify shared dependencies and record where an interruption could affect supply.

Map a product’s route through the production site and the inputs that could stop it being made. Two sellers are not independent alternatives if both rely on the same critical site or material. The useful output is a dated map showing the dependency, affected demand and what remains unconfirmed.

Start with the product

Choose a product or group of variants whose interruption matters. Record the approved specification, forecast demand for your planning period, usable stock and the date more goods are needed. Keep forecasts labelled as forecasts.

Ask the seller who performs each critical production step and where. Identify the material, component, tooling or specialist process on which that step depends. Record the seller separately from the production site. If an upstream source cannot be named, show the last confirmed point and the missing link.

Map field / What to record

Product
Affected SKU, variant and approved version
Dependency
Site, input, tool or process and its role
Basis
Document, checked observation or supplier statement
Exposure
Affected demand and usable stock
Substitution
What might change and whose approval is needed
Confidence
Confirmed, supplier-stated or unknown; date checked

Find shared points of failure

Compare routes across products and sellers. Different sellers may use one factory; several factories may rely on one specialised input. Ask rather than assume.

Draw each priority route as critical input → production step → finished goods → receiving point and mark where routes meet. If the supplier cannot identify which orders or variants use a shared node, leave the affected proportion open.

For example, two hypothetical pouch sellers might use the same specified closure. The map would flag a source to verify; it would not establish that the sellers actually share one.

Supply Chain Risk: Single vs Multiple Sources

  • Single Source DependencyHigh risk: one factory or material affects multiple products; interruption impacts entire supply chain
  • Multiple Independent SourcesLower risk: diverse suppliers and inputs reduce single points of failure; better resilience
  • Shared Inputs (e.g., closure for pouches)Even with different sellers, reliance on same input creates hidden risk – requires verification

Estimate the consequence

For each dependency, compare usable stock and credible replenishment timing with the date goods are needed. List the work a substitute would require: sourcing an input, assessing a changed product, arranging production and receiving stock. Record uncertain durations separately. A supplier estimate is not reserved capacity or a guaranteed recovery date.

The Australian Government Department of Industry, Science and Resources has an Office of Supply Chain Resilience. For a buyer, the practical question is whether stock can cover an interruption, or an unavailable input needs earlier action.

Finish with a priority list naming the dependency, affected goods, evidence confidence, possible shortage point, next question and owner. Refresh it when a site, material or demand forecast changes.

Key Metrics for Dependency Mapping

Usable Stock Level
Current inventory available for use
Replenishment Lead Time
Time to source and receive replacement input (uncertain durations noted separately)
Next Order Date
Date when additional goods are required
Confidence Level
Confirmed / Supplier-stated / Unknown (date checked)

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