Measures the percentage of contracted goods and services actually purchased compared to what was agreed upon in the contract.

What it Measures ?

What percent of available contracts are actively used.

Relevant StakeHolders 

Contract Managers, Legal Teams

In-depth Use Case / Real-world Example

A manufacturing company producing industrial pumps calculates the Contract Utilization Rate by tracking how much of its total procurement spend is aligned with contracts. For example, if the company has a contract for ₹50 crore worth of raw materials and ends up purchasing only ₹40 crore worth, the Contract Utilization Rate is 80%. A higher rate means the company is maximizing its contracted terms, ensuring price stability and favorable conditions.