We rely on one supplier for everything. How do we reduce dependency?

Supplier concentration risk

Identify critical dependencies, exit barriers, knowledge gaps, and feasible alternatives. Reduce exposure proportionately through documentation, access, transfer arrangements, and tested contingency.

What to do now

  1. Map supplier-controlled capabilities
  2. Identify the hardest-to-replace elements
  3. Secure necessary knowledge and access
  4. Agree a practical continuity or exit plan
Recommended action flow for supplier concentration risk: Map supplier-controlled capabilities then Identify the hardest-to-replace elements then Secure necessary knowledge and access then Agree a practical continuity or exit plan. Escalate when supplier failure would stop essential operations without a feasible response.

When to escalate

Escalate when

Supplier failure would stop essential operations without a feasible response.

Who decides

The authorized procurement or commercial owner

Example

The institution retains configuration knowledge and export access even while using one implementation partner.

Mistake to avoid

Assuming a contract alone guarantees continuity.

Prevent a repeat

Compare supplier evidence with agreed obligations; refer contract interpretation and remedies to qualified owners.

Suggested ApprovedFlow setup

  • Vendors
  • Documents
  • Tasks
  • Approvals

Keep supplier commitments and evidence linked to the project, assign follow-up work, and route commercial decisions to authorized owners. See the platform

Related cases

Practice references