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Supply Chain Management Professional (SCMP) · Question

What is the primary role of a 'Key Performance Indicator' (KPI) in supply chain management?

KPIs are quantifiable measures used to evaluate the performance of specific supply chain activities against predefined goals.

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Question: What is the primary role of a 'Key Performance Indicator' (KPI) in supply chain management?

Answer options:

  • To define legal obligations in contracts ✅ To measure and track progress towards strategic objectives
  • To automate inventory replenishment
  • To identify potential suppliers for new products

Correct answer: To measure and track progress towards strategic objectives

Explanation: KPIs are quantifiable measures used to evaluate the performance of specific supply chain activities against predefined goals.

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