Supply continuity

Supplier & Vendor Concentration

A business can have diversified customers and still depend economically on one factory, distributor, rebate program or critical vendor relationship.

Buyer lens

Measure both spend concentration and gross-profit dependence and test realistic replacement options.

Seller lens

Formalize important supplier rights and backup sources before buyer diligence.

Why it matters

A supplier may support the most profitable product even if its spend share is modest.
Terms, exclusivity and personal relationships can change after closing.
Switching can require qualification, tooling or customer approval.

Evidence to reconcile

Purchases by supplier
Contracts/terms
Product/SKU dependence
Lead times/MOQs
Backup supplier testing