2. What is Benchmarking?
Competitive Benchmarking is
the continuous measurement of the companyâs products,
services, processes and practices against the standards of
best competitors and other companies who are recognized
as leaders.
Who are doing it?
ïXerox started the practice in 1981, then became popular
in all major international companies, e.g. Motorola
ïThere are international organizations specialized in
this service, e.g., Global Benchmarking Council,
American Productivity and Quality Center
ïAsian Benchmarking Clearinghouse, Hong Kong
Benchmarking Clearinghouse
3. Setting Benchmarking Priorities
ïWhich processes and entities in the supply chain are of
strategic importance
ïWhich processes and entities have a high relative
impact on the business economics (costs, revenue,
asset performance, and human productivity)
ïWhere there is a choice between âmakeâ and âbuyâ
(processes of high impact on performance /productivity
and hard to source from suppliers)
ïWhere there is internal readiness to change
4. Benchmark
Priorities
Relative impact on business
economics
Processes that have a
disproportionate impact on:
Total cost
Revenue generation
Fixed-asset productivity
Human productivity
Strategic importance
Process that are likely to play a
major role in the future success of
the company
Organizational readiness
Processes executed by
personnel who are âreadyâ to
improve
Make versus buy economics
Processes determined to have high
impact on product performance/
profitability and which are hard to
source from quality suppliers
6. Conclusion
ïBenchmarking vital tool in maintaining world class
status.
ïSuccessful benchmarking programmes firstly enable
logistics strategies to be developed which are firmly
based upon customer service requirements,
and secondly, ensure that the processes
employed are truly leading edge.