Production Schedule Adherence

Measures the percentage of a supplier’s capacity that is being utilized.

What it Measures ?

Measures how much of the supplier's capacity is being used.

Relevant StakeHolders 

Procurement Manager, Supplier Manager

Why it Matters ?

Ensures supplier capacity aligns with demand.

In-depth Use Case / Real-world Example

A company manufacturing automotive parts calculates Supplier Capacity Utilization by evaluating how much of the supplier’s production capacity is being used. If a supplier has the capacity to produce 100,000 units per month, but the company only orders 75,000 units, the Supplier Capacity Utilization is 75%. Monitoring this helps optimize supplier relationships and production schedules.