Supplier capacity reallocation matrix
Use this matrix after the portfolio heatmap identifies suppliers that should be expanded, capped, restricted or replaced. It turns a portfolio decision into a controlled volume-transfer plan with readiness checks, pilot quantities, payment exposure limits and rollback triggers.
When to use it
- A red or restricted supplier must lose volume this month.
- A backup supplier is available but has not proven full capacity.
- A stable supplier is being asked to absorb extra quantity.
- Management wants a quantified split instead of a vague “move orders away” instruction.
Decision output
Every reallocation should produce one of four controlled actions: hold current split, pilot transfer, staged transfer, or emergency transfer. No transfer is approved without an owner, pilot lot, acceptance rule and rollback trigger.
hold splitpilotstageemergency
Copy-ready reallocation matrix
| Field | Example entry | Control purpose |
|---|---|---|
| Current supplier / current share | Supplier A · 55% · capped after repeat late shipment | Shows the exposure being reduced. |
| Receiving supplier / proposed share | Supplier B · increase from 20% to 35% | Defines the exact target, not just a direction. |
| Capacity proof | Line capacity photo, material booking, pilot delivery record | Prevents moving volume to an unproven supplier. |
| Quality proof | Approved sample, PSI pass, defect rate under threshold | Stops capacity transfer from becoming quality drift. |
| Commercial exposure cap | Deposit below 20%, no balance before inspection | Limits payment risk while the new split is tested. |
| Pilot quantity | First 10% of monthly demand or one low-risk SKU | Creates a reversible learning step. |
| Acceptance rule | On-time shipment, document match, no critical defect | Defines what evidence unlocks the next increase. |
| Rollback trigger | Late by 5 days, failed inspection, payment-account mismatch | Prevents repeated exceptions from becoming normal. |
| Owner and review date | Buyer owner · review every Friday until stable | Keeps the allocation decision active. |
Suggested transfer ladder
- 0–10% pilot: low-risk SKU, strict inspection and document check.
- 10–25% staged transfer: expand only after pilot proof closes.
- 25–50% controlled split: require capacity evidence and commercial cap.
- 50%+ emergency transfer: only with management approval and backup fallback.
Do not approve if
- The receiving supplier lacks current capacity or sample proof.
- Open claims, payment disputes or missing documents are unresolved.
- The transfer depends on informal promises instead of dated evidence.
- No rollback trigger exists for quality, delivery, document or payment failure.
Link to the portfolio layer
The heatmap decides which suppliers should expand, keep, monitor, restrict or replace. This matrix decides how much volume actually moves, when it moves, and what proof is required before the next increase. Use it with the volume-transfer control sheet when execution begins.