Measures the percentage of procurement spend that follows company-approved procurement processes, policies, and supplier contracts.

What it Measures ?

How much of our spending follows approved rules and policies.

Relevant StakeHolders 

Auditors, Procurement Governance Teams

In-depth Use Case / Real-world Example

A manufacturing company producing industrial pumps calculates the Spend Compliance Rate by evaluating how much of its total procurement spend adheres to approved contracts, supplier agreements, and procurement policies. If the company spends ₹80 crores, and ₹75 crores are compliant with procurement policies, the Spend Compliance Rate is 93.75%. This KPI helps ensure that the company adheres to its procurement guidelines, reduces risks, and avoids unnecessary or unauthorized spending.