KPIOperations & Supply Chain

Supplier Quality Acceptance Rate

Percentage of goods received from suppliers that meet quality standards on first delivery

What is Supplier Quality Acceptance Rate?

Supplier quality acceptance rate is the percentage of deliveries that meet quality standards on receipt. It shows how reliable suppliers are on quality.

Rejected deliveries cost time, cause shortages and can disrupt production, so a high rate is a sign of dependable suppliers.

How this KPI is measured

Function
Operations & Supply Chain
Sub-function
Procurement
Industry
All Industries
Type
Lagging
Impact
Quality
Unit
%
Measurement frequency
Monthly / Quarterly
Formula
(Deliveries meeting quality standards / Total deliveries received) × 100

How to calculate it

Divide deliveries meeting quality standards by total deliveries received, and multiply by 100.

For example, if 970 of 1,000 deliveries passed inspection, the acceptance rate is 97%.

Track by supplier and reason for rejection, and agree the inspection criteria with suppliers.

Where it is used

  • Managing suppliers

    Hold suppliers to account.

  • Reducing incoming defects

    Protect production.

  • Choosing suppliers

    Compare reliability.

How to improve it

Tips and common mistakes

  • Clear specifications prevent disputes.
  • Track reasons for rejection.
  • Include late delivery in a wider supplier scorecard.

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