Which of the following are potential benefits of critical or key performance indicators?
A) They facilitate discussions on how to punish sub-standard performance in suppliers.
B) They allow the application of penalties and incentives in contract to stimulate service providers to perform better.
C) They provide answers to supply problems.
D) They inform suppliers.

Question

Which of the following are potential benefits of critical or key performance indicators? 
A) They facilitate discussions on how to punish sub-standard performance in suppliers. 
B) They allow the application of penalties and incentives in contract to stimulate service providers to perform better. 
C) They provide answers to supply problems. 
D) They inform suppliers.

Quizplus · Accepted Answer

Critical or key performance indicators allow the application of penalties and incentives in contract to stimulate service providers to perform better. This can ultimately improve the quality of service being provided. Option A is not a benefit as it focuses on punishing sub-standard performance rather than improving it. Option C is not a clear benefit as critical or key performance indicators may provide insight into supply problems, but they do not necessarily provide answers to those problems. Option D is not a clear benefit as it is not specified what type of information or feedback is being provided to suppliers.

Which of the Following Are Potential Benefits of Critical or Key