Return orders in an hour Is that a good thing or not?

Return orders in an hour Is that a good thing or not?
A . Yes, because these targets will propel the suppliers to continuous improvement
B. No, the local suppliers are always the best choice
C. No, because the KPIs are not a realistic and justified
D. Yes, the higher the targets are, the better the outcomes will be

View Answer

Answer: C

Explanation:

KPIs and the targets for supplier should be SMART:

– Specific: What exactly do you want to achieve?

– Measurable: How will you identify that you have achieved your goal?

– Achievable: Is your goal really attainable?

– Relevant: Is it relevant to you or, in other words, does it align with where you want to be?

– Time-bound (or timely): When will you deliver your goal, and what are the key milestones?

The two KPIs (Delivery in one hour, Return orders in one hour) are not realistic and achievable for international suppliers. Therefore, you should not put such high targets for

supplier.

Reference:

– What Are SMART KPIs? (Spoiler: They Don’t Really Exist!)

– CIPS study guide page 107-108

LO 2, AC 2.2