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Supply Chain Management Professional (SCMP) · Question

What is the purpose of a 'key performance indicator' (KPI) in supply chain management?

KPIs are quantifiable measures used to track and assess the performance of various aspects of the supply chain against strategic goals.

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Question: What is the purpose of a 'key performance indicator' (KPI) in supply chain management?

Answer options: ✅ To measure and evaluate the effectiveness of supply chain processes

  • To define the legal terms of supplier contracts
  • To automate inventory reordering decisions
  • To set minimum ethical standards for supplier conduct

Correct answer: To measure and evaluate the effectiveness of supply chain processes

Explanation: KPIs are quantifiable measures used to track and assess the performance of various aspects of the supply chain against strategic goals.

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