Which of the following should be applied when measuring frequency of on-time deliveries during a contract period?

The frequency of on-time deliveries is a classic Key Performance Indicator (KPI) used in contract management. This metric is inherently quantitative, as it is measured and reported using numbers. For example, it can be expressed as a percentage (e.g., 95% of deliveries were on time), a ratio (e.g., 95/100), or a simple count. This method provides an objective, data-driven assessment of supplier performance against an agreed-upon service level, making it a numerical measure.

A. Qualitative assessment: This involves non-numerical data like opinions or descriptions (e.g., quality of communication), which is not suitable for measuring the frequency of a specific event like delivery.
C. Binary measure: While a single delivery can be viewed as binary (either on-time or not), the question asks for the frequency over a period, which requires aggregating these outcomes into a numerical value.
D. Subjective measure: This is based on personal judgment or opinion. On-time delivery is an objective measure based on predefined, verifiable criteria (e.g., agreed delivery dates and times).

1. CIPS (Chartered Institute of Procurement & Supply). (2018). Commercial Contracting L4M3 Study Guide. Profex Publishing. In the section on Key Performance Indicators (KPIs)

it is emphasized that metrics like 'On-Time In-Full' (OTIF) are quantitative measures used to objectively track supplier performance. Performance is tracked using numerical data against a baseline or target (See Chapter 6: Measuring Contract Performance).

2. Lysons

K.

& Farrington

B. (2020). Procurement and Supply Chain Management (10th ed.). Pearson. Chapter 15

"Supplier Relationship Management

" distinguishes between quantitative (objective) performance measures

such as delivery reliability

and qualitative (subjective) measures. On-time delivery is presented as a primary example of a quantitative

numerical metric.

3. Monczka

R. M.

Handfield

R. B.

Giunipero

L. C.

& Patterson

J. L. (2016). Purchasing and Supply Chain Management (6th ed.). Cengage Learning. Chapter 10

"Supplier Performance Management

" details the use of quantitative measures for performance evaluation. Delivery performance is categorized under quantitative metrics

typically measured as a percentage of on-time deliveries

reinforcing its status as a numerical measure.