Certification in Supplier Diversity Practice Exam

Which measure is NOT typically used by supply management?

1. Cost effectiveness

2. Employee turnover

3. Strategic performance

4. Supplier performance

The correct answer is: Employee turnover

Employee turnover is not a typical measure used by supply management because it primarily relates to human resources and workforce management rather than the supply chain or procurement processes. Supply management focuses on optimizing supply chains, managing supplier relationships, and ensuring cost-effectiveness and strategic alignment. On the other hand, cost effectiveness evaluates how well resources are utilized to achieve desired outcomes within the supply chain, strategic performance assesses how supply management aligns with the broader goals and strategies of the organization, and supplier performance measures the effectiveness and reliability of suppliers in meeting their obligations. These measures are critical for ensuring that the supply chain operates efficiently and aligns with the overall objectives of the organization.