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How To: Review Supply Risk

Judi Zietsman avatar
Written by Judi Zietsman
Updated over a month ago

For necessary background, please preread Supply Risk & Offset Explained before proceeding with this article.

Purpose

This article explains how to locate and read the Supply Risk values for an item on its Inquiry screen. It also shows where to find the detailed supplier performance data that supports these values.


Step 1: Open the Inquiry Screen

Navigate to the Inquiry screen > Safety Stock panel.


Step 2: Review the Key Metrics

Review the two key metrics displayed on this panel:

  • Supply Risk (%) represents the variability of the supplier’s deliveries.

  • Offset (days) indicates the number of days added to or subtracted from the calculated safety stock days.

These values summarize how reliable the preferred supplier has been in delivering this item.


Step 3: Evaluate the Supplier’s Performance Trend

Use the Supply Risk and Offset values together to assess supplier reliability:

  • High Supply Risk and positive Offset suggest inconsistent, frequently late deliveries.

  • High Supply Risk and negative Offset suggest inconsistency, but generally early deliveries.

  • Low Supply Risk with an Offset near zero indicates consistent and reliable performance.

If these values suggest performance concerns or unexpected variability, open the Supplier Performance tab to view the detailed graphs and data used in these calculations.

To investigate supplier-level trends across multiple items, refer to the Supplier Performance Feature, which aggregates data from all items supplied by that vendor.


How To Use the Supplier Performance Tab


Supplier Performance Feature


💡 Tip

  • Interpreting high risk values: Elevated Supply Risk or Offset values do not always indicate poor supplier performance. They can also result from inaccurate Planning Lead Time data. Review both the supplier’s performance history and the lead time configuration before drawing conclusions.


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