Within Supplyframe, you can create your own risk metric so that you can evaluate the supply chain risk of components based on a mix of internal and market intelligence data available inside the BOM. This is called the Risk Index. There is also a Risk Rank, which is a separate proprietary algorithm that Supplyframe developed to quantify component risk using multiple data points.
Risk Index
The Risk Index empowers you to define and use risk metrics when analyzing parts inside BOMs in BOM Insight. There is a default Risk Index that will be used across BOMs, until a customized index is created by your admins.
The default Risk Index is pre-set with selected parameters, conditions, and scores. When there are custom-created Risk Indices, these are available for you to select from when uploading a new BOM and in the Settings for their existing BOMs.
Creating a BOM
Existing BOM Settings
Risk Scale
Within Risk Index results, a scale is used to convey the riskiness of the part:
- Low (green): 0 - 30
- Medium (orange): 31 - 60
- High (red): 61 - 100
When calculating the averaged risk across all parameters, Supplyframe is rounding to the nearest whole number. When either conditions are not met, data is not available or identified, then those conditions are ignored when calculating the overall Risk Index score. If multiple conditions are satisfied for one parameter, then the first one in order will be taken into account.
When a condition is evaluated but the outcome is not part of the risk algorithm, such that it doesn’t carry a score, or there is no data available to evaluate the condition, then it will display as “No Score”.
Risk Index will calculate regardless if a part is in Part Master and belongs to a Part Category. If a part belongs to a Part Category, the Risk Index will calculate regardless if the setting “Use Supplyframe Intelligence” is enabled for a category.
When a Risk Index is adjusted in the System Settings by an admin, it does not affect the Risk Index already calculated and being displayed in a BOM. In order to see any changes made to a Risk Index's settings, you will need to refresh the BOM or specific line items that you want to see updated.
Viewing Risk Index Results
You can click on a part's Risk Index result in order to open the side modal for more details.
At the top of modal, you'll see the name of the specific Risk Index being used to calculate the results.
Then you'll see the MPN that the results are displayed for and the total Risk Index number. Below will be the different factors and their rankings for the specific Risk Index that were calculated in order to provide the assessment.
Please see this article for more information on how to create a custom Risk Index as an admin.
Risk Rank
Risk Rank is a separate proprietary algorithm that Supplyframe developed to quantify component risk using multiple data points. This ranking helps engineers and buyers determine whether alternates should be sought for parts that are deemed as high risk.
Risk Rank is viewable in the following areas:
- Alternates modal (Xref FFF, Functional Equivalents)
- Suggestions modal (Did you mean?)
- Parametric search results
Risk Rank is determined by a combination of factors such as product lifecycle status, price & inventory volatility, current inventory availability and much more. Even the availability of manufacturer specifications, part documentation such as datasheets and reference designs have an impact on determining the overall riskiness of a part.
The risk is characterized across three product phases:
- Design
- Production
- Long Term
The data for Risk Rank is based on suppliers feed data from approximately 88 suppliers, and long-tail distributors & brokers (e.g. Oemstrade).
However, it excludes data from the current 8 suppliers as it is providing it via API:
- AE Petsche Co.
- Arrow Electronics
- Digi-Key
- Mouser Electronics
- PEI Genesis
- Quest Components
- TTI
- Verical