Supply Chain Exposure

The Supply Chain Exposure cluster measures structural vulnerabilities in how a company sources its inputs. Companies that depend on a small number of suppliers, source from geographically concentrated regions, or rely on specialised inputs that cannot be easily substituted are most at risk when supply chains are disrupted.

Upstream Supplier Concentration

Dependency on a small number of suppliers. If a company relies on one or two critical suppliers for key components, any disruption to those suppliers directly threatens production. This is proxied by inventory volatility: companies with erratic inventory levels often reflect an unstable supply relationship.

Higher score = worse.

Geographic Supply Risk

Exposure to disruption from a geographically concentrated supply chain — for example, sourcing semiconductors exclusively from Taiwan, or rare earth materials primarily from China. Regional concentration means that a single geopolitical event, natural disaster, or logistics disruption can affect the entire input supply simultaneously. Proxied by sector and international revenue as a composite.

Higher score = worse.

Inventory Intensity

Inventory as a percentage of revenue. Companies that carry high inventories are more exposed to supply chain cost shocks (they may have paid too much for inputs they now hold), obsolescence risk (technology companies with fast product cycles), and working capital strain during disruptions. High inventory also creates a drag on free cash flow.

Higher score = worse.