Supply Chain & Procurement worked example

Supplier Risk Score with severity of a supplier failure of 4 score: a worked example in supply chain & procurement

Here is what the math looks like when conditions slip. We hold every other input steady and drop severity of a supplier failure to 4 score, then walk the calculation through step by step. Score supplier risk from financial, delivery, and geopolitical factors.

The inputs for this scenario

  • Severity of a supplier failure (1-10): 4 score (the input this scenario stresses; the baseline uses 8)
  • Likelihood the failure occurs (1-10): 6 score (held at the documented default)
  • Difficulty detecting it before impact (1-10): 7 score (held at the documented default)

Working through the calculation

  • The calculation starts from the formula this tool documents: Weighted score = severity × 0.40 + occurrence × 0.35 + detection × 0.25.
  • Supplier risk score works out to 5.45 score at these inputs, and this is the headline figure for the scenario.
  • Supplier risk severity score works out to 4 score at these inputs.
  • Supplier risk occurrence score works out to 6 score at these inputs.
  • Supplier risk detection score works out to 7 score at these inputs.

How this compares with the baseline

  • Against the tool's baseline example, where severity of a supplier failure sits at 8 score and the headline result is 7.05 score, this scenario comes in 22.7% below the baseline at 5.45 score.
  • The practical read: the gap between this scenario and the baseline is entirely attributable to severity of a supplier failure, so recovering it is worth quantifying in dollars before considering equipment or staffing changes. The weights are a convention, not a law of physics; a supplier that is catastrophic but rare can still score moderate, so always eyeball a severity of 9-10 regardless of the composite.

Results at a glance

  • Supplier risk score: 5.45 score (headline result)
  • Supplier risk severity score: 4 score
  • Supplier risk occurrence score: 6 score
  • Supplier risk detection score: 7 score

Run it with your numbers

  • To rerun this with your own numbers, open the live Supplier Risk Score calculator, set severity of a supplier failure to your actual value, and adjust the remaining inputs to match your operation.

Last reviewed 2026-05-12.