What it shows
The part of classified internal failure cost caused by suppliers (bad material, wrong deliveries) rather than by your own process. Uncategorized sets are left out.
Why it matters in manufacturing
Supplier-caused failure cost can be claimed back from the supplier, and it points at supplier qualification and incoming checks rather than at your own lines. Without the split it hides in the internal failure total.
How to read it
Lower is better. The tag compares with the same period last year in percentage points. A rising share asks for a look at supplier performance and at how much of it you actually charge back.
What good looks like
A low share, or a known one that is charged back to the suppliers: the internal failure is mostly within your own control and the supplier part is recovered.