Certified Supply Chain Professional (CSCP) Practice Exam

What does the term 'on-time delivery' refer to?

1. Percentage of late deliveries to customers

2. Metric measuring the percent of receipts received on time

3. Average time taken for deliveries

4. Metric evaluating delivery costs

The correct answer is: Metric measuring the percent of receipts received on time

The term 'on-time delivery' is primarily associated with the metric that measures the percentage of receipts received on time. In the context of supply chain management, this metric is crucial as it reflects the effectiveness and reliability of a company's logistics and fulfillment processes. On-time delivery is a key performance indicator (KPI) that helps organizations assess their ability to meet customer expectations and maintain satisfaction levels. By focusing on the punctuality of deliveries, businesses can identify trends and areas for improvement in their supply chain operations. Monitoring this metric allows companies to take proactive measures, such as optimizing inventory management, improving communication with suppliers, or enhancing transportation strategies, to ensure that products reach customers as promised. Other options describe different aspects of delivery and supply chain performance but do not encapsulate on-time delivery accurately. For instance, measuring the percentage of late deliveries is a backwards-looking metric that doesn't focus on the timely aspect. Similarly, the average time taken for deliveries provides insight into delivery speed but does not specifically address the notion of meeting promised delivery dates. Lastly, evaluating delivery costs is crucial for financial analysis but is not directly related to the timeliness of deliveries, which is what 'on-time delivery' specifically refers to.