Key Performance Indicator (KPI)
Used across a number of professional industries, this term is defined by a set of quantifiable measures that a company or industry uses to gauge or compare performance in terms of meeting their strategic and operational goals. KPIs vary between companies and industries, depending on their priorities or performance criteria. In contingent programs, KPIs include broadly defined metrics like Time-to-fill or agency fill rate, to more granular metrics like invoice accuracy or VMS system uptime. KPIs are meant to track supplier and program performance and are different from Service Level Agreements in that they usually do not carry a contractual or fiscal consequence for failure to achieve. KPIs vary between companies and industries, depending on their priorities or performance criteria.