Which aspect of supply chain management is best evaluated through KPIs?

Overall supply chain performance is the best aspect to evaluate through Key Performance Indicators (KPIs) because KPIs are designed to measure efficiency, effectiveness, and the overall health of processes within an organization. They provide quantifiable metrics that allow businesses to track progress towards strategic goals.

When assessing supply chain performance, KPIs can cover various dimensions such as delivery reliability, inventory turnover, cost efficiency, order fulfillment rates, and customer satisfaction levels. These metrics provide insights into how well the supply chain is functioning as a cohesive unit, enabling organizations to identify areas for improvement, streamline operations, and enhance collaboration among supply chain partners.

In contrast, while aspects like negotiation skills, employee engagement, and technological investments are important, they do not inherently reflect the comprehensive performance of the entire supply chain. For example, negotiation skills may impact supplier relationships but do not provide a complete picture of supply chain efficiency or effectiveness. Similarly, employee engagement and technological investments, while significant for organizational development, are more indirect influences on supply chain performance, making them less suitable for a holistic evaluation of supply chain efficacy through KPIs.