Supplier Compliance Rate
Percentage
Measures how frequently a supplier adheres to contractual terms, industry standards, and regulatory guidelines. Ensuring compliance is pivotal to prevent potential legal issues and safeguard the company's reputation.
Formula
(Number of Compliant Supplier Deliveries / Total Supplier Deliveries) x 100
Example
If a supplier adhered to compliance terms for 95 out of 100 deliveries, the compliance rate is 95%.