What do supply chain KPIs measure?

Supply chain Key Performance Indicators (KPIs) are essential metrics used to assess various aspects of a supply chain's performance. The correct answer highlights that these indicators specifically measure the effectiveness and efficiency of the supply chain.

Effectiveness refers to how well the supply chain meets its objectives, such as timely delivery and meeting quality standards. Efficiency, on the other hand, indicates how well resources are utilized in the supply chain to minimize costs while maximizing output. By tracking these KPIs, organizations can identify areas for improvement, optimize processes, and ensure that they are achieving their desired operational goals.

Other options, while important in their own right, do not capture the primary focus of supply chain KPIs. For instance, financial performance and customer satisfaction are components that can be influenced by supply chain efficiency and effectiveness but do not directly address the operational metrics that KPIs provide. Market share is a broader business metric influenced by various factors beyond just the supply chain. Therefore, the emphasis on effectiveness and efficiency in measuring supply chain KPIs makes this answer particularly relevant for understanding how supply chains operate and can be optimized for better performance.