In procurement, the share of spend in a category that went to the supplier and price the contract specifies. Its opposite is off-contract or maverick spend.
Compliance = spend with the contracted supplier at contracted terms ÷ total spend in the category
From the purchase ledger or accounts payable, joined to the contract's category, supplier and site coverage.
Off-contract spend clusters. A site or a department buying the same category from a non-contracted supplier is the finding, and it is invisible in the category total.
Category spend by supplier sums to the ledger. When it does not, a supplier has two identifiers, an invoice was coded to the wrong category, or the ledger extract is missing a company code.
Purchases made on the agreement, with the contracted supplier and price, divided by eligible purchases in the category, per site or facility.
A facility bought $400,000 in a contracted category, $290,000 of it on the agreement: 73 percent. The rest went to a second brand through a local distributor.
Measured at group level. A compliant total hides the four sites that ignore the agreement.