The Supply Chain analysis examines how the Company provides the goods and services to the Company customers.  As the name indicates it is an examination of the chain of suppliers (external and internal) that supply these goods and services. 

Since the "Cost of Goods Sold" is usually a large cost element this analysis provides the basis for comparing the tradeoffs selected in the development of the supply chain.  These tradeoffs are usually characterized as: cost, quality, lead time, inventory cost, obsolesence risk, etc.

Vendor Pareto Analysis

• Concentration
• Characterization of Key Vendors
• Commodity vs. Specified products
• Sole Source or Multi-source
• Performance Ratings
  

Sourcing Objectives

• Product Cost, inventory reduction, flexibility, risk
  

Sourcing Strategies

• Vendor Consolidation
  
• Renegotiation Supply Agreements
•  Re-sourcing – Domestic or Offshore