Measures the percentage of goods delivered by a supplier that do not meet the required quality standards.

What it Measures ?

What percentage of deliveries are defective.

Relevant StakeHolders 

Quality Assurance, Procurement Teams

In-depth Use Case / Real-world Example

A company manufacturing electric motors calculates the Supplier Defect Rate by measuring the percentage of parts received that do not meet quality standards. If the company receives 10,000 parts, and 200 are defective, the Supplier Defect Rate is 2%. A higher defect rate can lead to production delays, higher rework costs, and customer dissatisfaction. Tracking and reducing this rate is crucial for maintaining product quality and efficiency.