L4M3 Exam Dumps | Which of the following would be suitable key performance indicators (KPIs) for supplier performance?

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Question 26/84

Which of the following would be suitable key performance indicators (KPIs) for supplier performance?
Ensure you have customer loyalty
Value or percentage of cost reductions obtained
Win an award in the next 12 months
Percentage of on-time in full deliveries

A. 1 and 3 only

B. 2 and 4 only

C. 1 and 4 only

D. 2 and 3 only

Correct Answer: B

"Cost reductions" and "on-time in full deliveries" are quantifiable, objective performance measures that align directly with supplier effectiveness and value. "Customer loyalty" and "awards" are subjective or aspirational and not reliable indicators of contract or supplier performance.
Reference:CIPS L4M3 Commercial Contracting Study Guide, Chapter 4, Section 4.3.1 - Development and useof KPIs in contract management.

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