It is a common practice among the Supply Chain Experts to always focus only on  the products or services that contribute more than 80% of their spend. They go a long way in hiring procurement intelligence companies or consultants who can help them to assess the supply chain risk of only their major spend categories. But lets face it. What if there is a raw material which is very low on spend but highly required to manufacture a product? What if it is single sourced? In other words, what if there is only one supplier from whom this can be procured? Since we cannot manufacture our product without this raw material, will this not have a significant impact on the company’s revenue? It is true that in the past there have been many cases wherein companies suffered huge loss in their revenue while others went to the extent of bankruptcy purely because of the fact they did not focus on the supply chain risk of low spend categories and items. In the following video, Ms.Bindiya Vakil, President of Resilink gives a classic example with Apple Inc. Check it out

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