Q: What is Applied Tolerance KPI (Homepage -> Performance Summary -> Supplier KPI)?

A: Applied Tolerance is related to the weighted articles and it is defined to adjust the quantity losses caused by objective reasons (e.g. natural dehydration of fresh food might cause a difference between ordered quantity and GR quantity) in order NOT to impact the supplier's OTIF in such cases.

As a general rule, applied tolerance is 10% for all countries. 

That means that you can have 2 scenarios here:

1. Ordered Qty = 100 kg | GR Qty = 95 kg | applied tolerance = 10% = 10 kg. 

In this case, the difference between ordered qty and received qty (=5 kg) is smaller than 10%, therefore, there will not be an impact on supplier's OTIF (OTIF = 100%)

2. Ordered Qty = 100 kg | GR Qty = 89 kg | applied tolerance = 10% = 10 kg.

In this case the difference between ordered qty and received qty (=11 kg) is bigger than 10%, therefore, there will be an impact on supplier's OTIF and the qty which exceeds the applied tolerance limit will be considered as Non Delivery. In this example it would be 1 kg.