Supply Chain Risk and Diversification Planner

Map your supply chain vulnerabilities, score risk by supplier and region, and build a diversification strategy that protects revenue without killing margins.

Prompt Template

You are a supply chain strategy consultant who has helped Fortune 500 companies and high-growth startups build resilient supply networks. Analyze my supply chain and create a diversification plan.

**Company/Product:** [company name and what you sell]
**Industry:** [industry]
**Annual revenue:** [revenue range]
**Key suppliers:** [list your top 5-10 suppliers, what they provide, and their location]
**Single-source dependencies:** [any components/materials with only one supplier]
**Recent disruptions:** [any supply chain issues you've experienced]
**Geographic concentration:** [where most of your suppliers are located]
**Lead times:** [typical lead times for critical components]
**Budget for diversification:** [what you can invest in reducing risk]

Deliver the following:

## 1. Supply Chain Risk Heat Map
For each supplier/component, score:
- **Concentration risk** (1-5): How dependent are you on this single source?
- **Geographic risk** (1-5): Political, climate, logistics risks of their region
- **Financial risk** (1-5): Supplier's financial stability
- **Substitution difficulty** (1-5): How hard is it to switch?
- **Overall risk score** (weighted average)

Present as a ranked table from highest to lowest risk.

## 2. Critical Vulnerability Analysis
- Identify your top 3 "single points of failure"
- Estimate revenue impact if each failed for 30/60/90 days
- Map second-order effects (e.g., if Supplier A fails, does it affect Supplier B?)

## 3. Diversification Strategy
For each high-risk area:
- **Dual-source plan**: Recommended alternative suppliers with pros/cons
- **Near-shoring options**: Closer alternatives to reduce lead time
- **Safety stock recommendations**: Buffer inventory levels for critical items
- **Contractual protections**: Key terms to negotiate (penalty clauses, guaranteed capacity)

## 4. Implementation Roadmap
- Phase 1 (0-90 days): Quick wins and emergency preparations
- Phase 2 (3-6 months): New supplier qualification and onboarding
- Phase 3 (6-12 months): Full diversification and ongoing monitoring

## 5. Cost-Benefit Analysis
- Investment required vs. risk reduction achieved
- Break-even scenarios (how quickly does diversification pay for itself if disruption occurs)

Example Output

# Supply Chain Risk Assessment: TechGear — Consumer Electronics

Supply Chain Risk Heat Map

| Supplier | Component | Location | Concentration | Geographic | Financial | Substitution | **Overall** |

|----------|-----------|----------|:---:|:---:|:---:|:---:|:---:|

| ChipTech Ltd | Main SoC | Shenzhen, China | 5 | 4 | 3 | 5 | **4.4** |

| BattCorp | Li-ion cells | Guangdong, China | 4 | 4 | 2 | 3 | **3.4** |

| ScreenPro | OLED displays | Seoul, South Korea | 3 | 2 | 2 | 3 | **2.6** |

| CaseMakers | Aluminum housing | Vietnam | 2 | 2 | 3 | 1 | **2.0** |

| PackRight | Retail packaging | Mexico | 1 | 1 | 2 | 1 | **1.2** |

Critical Vulnerabilities

🔴 #1: ChipTech Ltd (SoC) — Risk Score 4.4

- **Single source** for your core processor; no qualified alternative

- **30-day outage impact:** .1M lost revenue (entire production stops)

- **90-day outage impact:** .4M + potential retail partner penalties of K

- **Second-order effect:** Also supplies the Bluetooth module in your accessories line

Action Plan — Phase 1 (0-90 days)

1. Increase safety stock from 2 weeks → 6 weeks (K additional inventory cost)

2. Begin qualification process with MediaTek for alternative SoC

3. Negotiate "capacity reservation" clause in next ChipTech contract renewal

4. Add force majeure monitoring via Resilinc or Everstream alerts

Cost-Benefit Summary

- **Total diversification investment:** K over 12 months

- **Risk reduction:** Single-source dependencies from 3 → 0

- **Break-even:** One 3-week disruption pays for the entire program

Tips for Best Results

  • 💡Start with your highest-revenue product line — that's where supply chain risk hurts most
  • 💡Don't just diversify geographically — diversify by ownership structure too (avoid suppliers owned by the same parent company)
  • 💡Safety stock is expensive but cheaper than lost revenue — calculate your "cost of stockout" to justify the investment
  • 💡Review this analysis quarterly and after any major geopolitical event