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

Customer Concentration Risk with customer concentration impact score of 4.5 score: a worked example

This worked example runs the customer concentration risk numbers for a tougher week than the baseline: customer concentration impact score of 4.5 score instead of the typical 9 score. Score business risk from dependence on one customer or customer program.

The inputs for this scenario

  • Customer concentration impact score: 4.5 score (the input this scenario stresses; the baseline uses 9)
  • Concentration disruption likelihood score: 5 score (held at the documented default)
  • Replacement difficulty score: 6 score (held at the documented default)

Working through the calculation

  • The calculation starts from the formula this tool documents: customer concentration risk score = customer concentration impact score × concentration disruption likelihood score × replacement difficulty score.
  • customer concentration risk score works out to 5.05 score at these inputs, and this is the headline figure for the scenario.
  • customer concentration impact score works out to 4.5 score at these inputs.
  • concentration disruption likelihood score works out to 5 score at these inputs.
  • replacement difficulty score works out to 6 score at these inputs.

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 26.28% below the baseline at 5.05 score.
  • Use it in annual business reviews, before adding capacity for one big customer, or when weighing whether to chase diversification work at thinner margins. A result at this level usually justifies acting on the stressed input before touching anything else, because every other figure in the table is downstream of it.

Results at a glance

  • customer concentration risk score: 5.05 score (headline result)
  • customer concentration impact score: 4.5 score
  • concentration disruption likelihood score: 5 score
  • replacement difficulty score: 6 score

Run it with your numbers

  • To rerun this with your own numbers, open the live Customer Concentration Risk calculator, set customer concentration impact score to your actual value, and adjust the remaining inputs to match your operation.

Last reviewed 2026-05-12.