What is Impact?
Impact represents the measurable effect your business activities have on your supply chain, as assessed through the suppliers you engage with. By understanding your impact, you can identify opportunities to drive positive change, enhance transparency, and align your business goals with sustainable practices. We work with two different impact models at Prewave: the sustainability model and the disruption model.
How Do We Calculate Impact?
Sustainability Model
This model evaluates the dependency of a supplier on a company based on the financial impact of the business relationship:
The impact is determined by dividing the annual spend on a supplier by the supplier's total annual revenue.
A higher value means the supplier relies heavily on the company’s business, making sustainability risks more significant.
Example: If a company spends $10 million annually on a supplier that has an annual revenue of $50 million, the impact score would be 0.2 (or 20%), indicating that 20% of the supplier's revenue comes from this company.
Disruption Model
This model assesses the financial risk for a company in case of a supplier disruption:
The impact is calculated by dividing the annual revenue at risk due to a disruption by the company’s total annual revenue.
A higher value means that a disruption could significantly affect the company's revenue.
Example: If a company has $500 million in total revenue and $50 million is at risk due to supplier issues, the impact score would be 0.1 (or 10%), meaning that 10% of the company’s revenue is at risk.
Where do we retrieve our information from?
We use publicly available information as well as data provided by you:
Supplier Revenue:
This information is retrieved by our Data Science team from publicly available data sources.
In case you find that this information isn't accurate, you can report it as wrong information on the supplier profile under "More" > "Report wrong info"
Client Spend:
You will be the one sharing this information with your Customer Success Manager in order for it to be implemented onto the platform.
What to do if the impact isn't displayed correctly?
You are able to adjust the impact within the data tab of a supplier profile in case you don't agree with the level on which it has been automatically set on. In order to do so please navigate to the data tab and then click on the "edit" button at the supplier information.
Sustainability Model
The impact will be shown on the left hand side of the data tab and you can adjust it by first clicking the "edit" button and then choose between a Degree of Influence of :
No
Low
Mid
High
Critical
Once you have adjusted the Degree of Influence please go back to the top right of the page and save your changes
Disruption Model
Here, instead of adjusting the Degree of Influence you will be adjusting the impact at "business interruption" where you can choose between:
No
Low
Mid
High
Critical
Once you have chosen a new level of impact please go back to the top of the page and save the changes you have made
