Supplier Compliance Rate
Category: Analytical
Measures the percentage of suppliers who adhere to the agreed-upon terms, contracts, and regulatory requirements.
What it Measures ?
Shows how many suppliers follow set rules
Relevant StakeHolders
Vendor Risk Teams, Compliance Officers
Why it Matters ?
Tracks supplier adherence to compliance standards.
In-depth Use Case / Real-world Example
A company manufacturing industrial motors calculates the Supplier Compliance Rate by tracking how many of its suppliers meet the required contract terms, quality standards, and regulatory requirements. If out of 20 suppliers, 18 meet the requirements, the Supplier Compliance Rate is 90%. High compliance ensures that suppliers are reliable and aligned with the company’s quality and regulatory standards, reducing risks associated with non-compliance.
Sample Formula
(Suppliers Meeting Standards / Total Suppliers) * 100