Contract Manufacturing, Job Shop Quoting & Make-to-Order worked example

Customer Concentration Risk with customer concentration impact score of 23 score: a worked example

Push customer concentration impact score up to 23 score and the picture changes. This example computes every intermediate figure at that operating point. deciding whether a customer concentration needs pricing discipline, diversification, or capacity limits

The inputs for this scenario

  • Customer concentration impact score: 23 score (raised for this scenario; the documented default is 9)
  • Concentration disruption likelihood score: 5 score (unchanged)
  • Replacement difficulty score: 6 score (unchanged)

Working through the calculation

  • Applying the documented formula (customer concentration risk score = customer concentration impact score × concentration disruption likelihood score × replacement difficulty score) to the inputs above produces each figure below.
  • At this operating point the engine returns 12.45 score for customer concentration risk score, the number this scenario is built around.
  • At this operating point the engine returns 23 score for customer concentration impact score.
  • At this operating point the engine returns 5 score for concentration disruption likelihood score.
  • At this operating point the engine returns 6 score for replacement difficulty score.

How this compares with the baseline

  • Against the tool's baseline example, where customer concentration impact score sits at 9 score and the headline result is 6.85 score, this scenario comes in 81.75% above the baseline at 12.45 score.
  • It produces a composite concentration risk score from impact, disruption likelihood, and replacement difficulty scores on a shared scale. The value of this scenario is the size of the gap it exposes: that gap, priced out over a year, is the budget you can justify spending to close it.

Results at a glance

  • customer concentration risk score: 12.45 score (headline result)
  • customer concentration impact score: 23 score
  • concentration disruption likelihood score: 5 score
  • replacement difficulty score: 6 score

Run it with your numbers

  • Every input above is editable in the live Customer Concentration Risk calculator, which recalculates instantly and can be shared with the inputs intact.

Last reviewed 2026-05-12.