Part 4 (10 marks Total) Supplier Relationship Management is a key role for Purchasing, as the Air Canada experience highlighted for us the Purchasing financial savings and benefits will be lost within 18 months unless the supplier relationship is fully managed. To this end in this Module we learned the importance of KPI's (Key Performance Indicators) and how they are to be mutually agreed with measures provided monthly to your attention from the supplier.

Scenario: Assume that your company (Home Hardware parts) has just set up a contract with "Reliable Courier" for pick up and deliveries at your company and the volumes are in the range of 30-40 daily (in and out basis) Monday to Friday 09:00-5:00 pm, Special rush shipments after hours and weekends are available (part of the contract) with prior approval (name, date and time) & full supporting documentation required. As agreed in the contract within 3 hours of after-hours' notice to Reliable Courier the delivery will have taken place.

Question 1 (6 marks) Outline 6 (KPI's) Key Performance Indicators you would expect on a monthly basis?

Question 2 (4 marks) Outline any other feedback you would welcome from "Reliable Courier" on a monthly basis? (feel free to develop examples).