Supplier Price Rise Calculator
Calculate the weighted impact of a specific supplier's price hike on your total Cost of Goods Sold (COGS). Helps prioritize negotiation efforts.
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Formula
A mathematical way to see how much your total inventory cost will rise based on the importance of the supplier being analyzed.
Worked Example
Analyzing Supplier Increases
- Diversifying suppliers can lower your "Supplier Share" risk.
- Prioritize negotiations with suppliers who have the highest weighted impact.
- Use this data to decide where to start looking for alternative sources.
Focused data leads to more effective supplier negotiations.
You can also calculate changes using our Price Increase Needed Calculator or Purchase Order Cost Adjustment Calculator.
Frequently Asked Questions
What is weighted impact?
It is a calculation that accounts for the size of a supplier. A 50% hike from a small supplier may hurt less than a 5% hike from your main supplier.
How do I calculate "Supplier Share of COGS"?
Take the total amount you spend with that supplier per year and divide it by your total annual Cost of Goods Sold.
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