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An Assignment On
“SUPPLY CHAIN MANAGEMENT”
Course name: Supply Chain Management
Course Code: MGT-524

Submitted To:
M.M. NASIMUZZAMAN
Associate Professor,
Department of Management,
Islamic University, Kushtia.

Submitted by:
MD. SEAM KHAN
Roll: 200521
Session: 2020-2021(MBA)
Department of Management,
Islamic University, Kushtia.
Date of submission:
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Chapter 1
Understanding the Supply Chain
1. WHAT IS A SUPPLY CHAIN?

A supply chain consists of all parties involved, directly or indirectly, in fulfilling a customer request. The
supply chain includes not only the manufacturer and suppliers, but also transporters, warehouses,
retailers, and even customers themselves.

2. WHAT ARE THE STAGES OF SUPPLY CHAIN? EXPLAIN.

A typical supply chain may involve a variety of stages, including the following:
• Customers
• Retailers
• Wholesalers/distributors
• Manufacturers
• Component/raw material suppliers

3. THE IMPORTANCE OF SUPPLY CHAIN DECISIONS

The importance of supply chain decisions can’t describe in a word. There is a close connection between
the design and management of supply chain flows. Besides, the successes of the supply chain also
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depend on it and the three supply chain decision phases. In supply chain management, all parties are
directly or indirectly involved with each other to fulfill the demand of consumers. It does not include
only the manufacturers and suppliers but also agents, brokers, retailers, wholesalers, and customers
themselves. In organizations, the supply chain involves receiving and fulfilling customer demand. It may
be new product development, marketing .operations, distribution, finance, and customer service. In
contrast, the failure of many businesses must depend on effective supply chain decisions. Weak supply
chain decisions can’t bring success to organizations. Sometimes, we can see that, some companies’
supply chains can’t adapt to the changing nature of the supply chain. Moreover, they also fail to meet
customer expectations.

For example, Dell Computer Company has great supply chain decisions.

That’s why they become more successful than any other company. Their suppliers are much more
attentive to adapting them to the changing nature of the supply chain. Because they are technologically
advantaged and connected with each other. Besides, they have the capacity to meet the customers’
expectations.

4. EXPLAIN THE DECISION PHASES IN A SUPPLY CHAIN.

1. Supply chain strategy or design:

In this supply chain decision phase, a company decides how to design the supply chain over the next
several years. The company decision includes – what the chain configuration will be.

2. Supply chain planning

Time is considered in a quarter to a year. Therefore, the previous phase determined the phase is
fixed. This phase establishes constraints within the organization. Supply chain planning is used for
solving the constraints. Therefore, This decision phase has a goal. This is to maximize the supply chain
surplus.

3. Supply chain operations:

After completing the previous two phases, supply chain operations are needed to do. Here, The time
horizon is weekly or daily. In this phase, companies make decisions on managing individual customer
orders. Here, the supply chain configuration is considered fixed. And planning policies are already
defined.

5. EXPLAIN SUPPLY CHAIN PROCESS CYCLES.

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6. DISCUSS THE GOAL OF A SUPPLY CHAIN AND EXPLAIN THE IMPACT OF

SUPPLY CHAIN DECISIONS ON THE SUCCESS OF A FIRM.

The goal of a supply chain should be to maximize overall supply chain surplus. Supply chain surplus
is the difference between the value generated for the customer and the total cost incurred across all
stages of the supply chain. A focus on the supply chain surplus grows the size of the overall pie for
all members of the supply chain. Supply chain decisions have a large impact on the success or failure
of each firm because they significantly influence both the revenue generated and the cost incurred.
Successful supply chains manage flows of product, information, and funds to provide a high level of
product availability to the customer while keeping costs low.

Chapter 2
Supply Chain Performance: Achieving
Strategic Fit and Scope
1. DEFINE COMPETITIVE AND SUPPLY CHAIN STRATEGIES?

A company’s competitive strategy defines, relative to its competitors, the set of customer needs that it
seeks to satisfy through its products and services. A company’s competitive strategy defines, relative to
its competitors, the set of customer needs that it seeks to satisfy through its products and services.

2. Draw The Value Chain in a Company.

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3. How Is Strategic Fit Achieved?

There are three basic steps to achieving this strategic fit, which we outline here and then discuss in more
detail:
1. Understanding the Customer and Supply Chain Uncertainty: First, a company must understand the
customer needs for each targeted segment and the uncertainty these needs impose on the supply chain.
These needs help the company define the desired cost and service requirements. The supply chain
uncertainty helps the company identify the extent of the unpredictability of demand, disruption, and
delay that the supply chain must be prepared for.
2. Understanding the Supply Chain Capabilities: Each of the many types of supply chains is designed to
perform different tasks well. A company must understand what its supply chain is designed to do well.
3. Achieving Strategic Fit: If a mismatch exists between what the supply chain does particularly well and
the desired customer needs, the company will either need to restructure the supply chain to support the
competitive strategy or alter its competitive strategy.

4. How you can find the zone of strategic fit? Explain with the help of a
figure.
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5. DISCUSS THE SCOPE OF EXPANDING STRATEGIC FIT?

A key issue relating to strategic fit is the scope, in terms of supply chain stages, across which the
strategic fit applies. Scope of strategic fit refers to the functions within the firm and stages across the
supply chain that devise an integrated strategy with an aligned objective. At one extreme, every
operation within each functional area devises its own independent strategy with the objective of
optimizing its individual performance. In this case, the scope of strategic fit is restricted to an operation
in a functional area within a stage of the supply chain. At the opposite extreme, all functional areas
across all stages of the supply chain devise aligned strategies that maximize supply chain surplus. In this
case, the scope of strategic fit extends to the entire supply chain.

6. WHAT ARE THE CHALLENGES TO ACHIEVING AND MAINTAINING

STRATEGIC FIT?

Increasing Product Variety and Shrinking Life Cycles

One of the biggest challenges to maintaining strategic fit is the growth in product variety and the
decrease in the life cycle of many products. Greater product variety and shorter life cycles increase
uncertainty while reducing the window of opportunity within which the supply chain can achieve fit.
Globalization and Increasing Uncertainty
Globalization has increased both the opportunities and risks for supply chains. The 21st century has
started with significant fluctuations in exchange rates, global demand, and the price of crude oil, all
factors that impact supply chain performance.
Fragmentation of Supply Chain Ownership
Over the past several decades, most firms have become less vertically integrated. As companies have
shed noncore functions, they have been able to take advantage of supplier and customer competencies
that they themselves did not have.
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Changing Technology and Business Environment

As customer needs and technology change, firms are forced to constantly rethink their supply chain
strategy. A strategy that may have been very successful in one environment can easily become a
weakness in a changed setting.
The Environment and Sustainability
Issues related to the environment and sustainability have grown in relevance and must be accounted for
when designing supply chain strategy.

Logistics and Supply Chain

Management
MARTIN CHRISTOPHER

Logistics and customer value:

chapter 2
1. What is customer service?
It has been suggested that the role of customer service is to provide ‘time and place utility’ in the
transfer of goods and services between buyer and seller. Put another way, there is no value in the
product or service until it is in the hands of the customer or consumer. It follows that making the
product or service ‘available’ is what, in essence, the distribution function of the business is all about.
‘Availability’ is in itself a complex concept, impacted upon by a galaxy of factors which together
constitute customer service. These factors might include delivery frequency and reliability, stock levels
and order cycle time

2. What is customer value?

Ultimately the success or failure of any business will be determined by the level of customer value that it
delivers in its chosen markets. Customer value can be defined quite simply as the difference between the
perceived benefits that flow from a purchase or a relationship and the total costs incurred. Another way of
expressing the idea is:

Perceptions of benefits
Customer value = ––––––––––––––––––––––
Total cost of ownership

3. ILLUSTRATE THE IMPACT OF LOGISTICS AND CUSTOMER SERVICE ON MARKETING?

The impact of both a strong consumer franchise and a customer franchise can be enhanced or
diminished by the efficiency of the supplier’s logistics system. It is only when all three components are
working optimally that marketing effectiveness is maximized. To stress the interdependence of these
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three components of competitive performance it is suggested that the relationship is multiplicative. In

other words the combined impact depends upon the product of all three.

4. DESCRIBE THE PROCESS OF LINKING CUSTOMER VALUE TO SUPPLY

CHAIN STRATEGY WITH THE HELP OF A FIGURE?

5. DISCUSS THE PROCESS OF SERVICE SEGMENTATION APPROACH?

1. Identify the key components of customer service as seen by customers themselves.
2. Establish the relative importance of those service components to customers3
3. Identify ‘clusters’ of customers according to similarity of service preferences.
6. EXPLAIN HOW TO MANAGE PRODUCT SERVICE LEVELS? DRAW A FIGURE.

7. Identify Some Of The Key Areas Where Standards Are Essential?

● Order cycle time

● Stock availability
● Order-size constraints
● Ordering convenience
● Frequency of delivery
● Delivery reliability
● Documentation quality
● Claims procedure
● Order completeness
● Technical support
● Order status information
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Creating the responsive supply

chain: chapter 4
1. EXPLAIN GENERIC SUPPLY CHAIN STRATEGIES WITH THE HELP OF A
FIGURE?

2. SHOW THE DIFFERENT CONTEXTS IN WHICH THE ‘LEAN’ AND

‘AGILE’ PARADIGMS MIGHT WORK BEST.
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3. “AGILE A SUPPLY CHAIN MUST POSSESS A NUMBER OF DISTINGUISHING

CHARACTERISTICS” EXPLAIN IT.

4. ADVANTAGES OF PUSH STRATEGY

Better Inventory Control: A key advantage of a push strategy in a supply chain is better inventory
control. Using the push strategy, manufacturers can produce products in advance, stock them, and then
sell them with rising demand. This reduces the risk of stock-outs.
Forecasting Accuracy: A push strategy in the supply chain helps manufacturers have a better
understanding of demand patterns. Using the push strategy, manufacturers can have a more accurate
view of the market.
Reduced Lead Time: Another advantage of a push strategy in the supply chain is that it can reduce lead
times. In this strategy, customers receive the products faster as products are produced and stocked
even before the customer places an order.
Alignment of Supply and Demand: A push strategy can help align supply and demand in a better way.
This reduces the risk of obsolescence. Using a push strategy in the supply chain, manufacturers can
respond quickly to changes in demand and make necessary adjustments to production and inventory
levels.
Focus on Standard Products: A push strategy in the supply chain can allow manufacturers to focus on
producing standard products in high volume. This will help in reducing costs and improve efficiency.

5. LIMITATIONS OF PUSH STRATEGY

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Customer Demand Variability: In a push strategy, products are manufactured based on forecasts and
pushed into the market. However, unpredictable changes in customer demand can lead to inventory
imbalances and excess stock.

Inventory Management: Push strategy relies on maintaining high inventory levels to meet anticipated
demand. However, this approach can result in carrying costs, product obsolescence, and the risk of stock
outs.

Production Planning: Aligning production capacity with anticipated demand is a crucial aspect of push
strategy. Insufficient production capacity can lead to delays and missed delivery deadlines.

Information Sharing in the Supply Chain: In a push strategy, effective communication and information
sharing among supply chain partners become critical. Lack of real-time data exchange and collaboration
can lead to inaccurate forecasts, delayed responses, and inefficient operations.

6. ADVANTAGES OF PULL STRATEGY

Enhanced Customer Relationships

Satisfied customers are the lifeline of any business. A pull strategy in supply chain management can help
businesses build strong, long-lasting relationships with their customers.
Dynamic Response to Customer Demand
One of the key benefits of a pull strategy is that it allows businesses to respond dynamically to changing
customer demand. This strategy helps manufacturers closely monitor customer behavior. It helps them
to adjust production and delivery.
Better Quality Control
With a pull strategy in the supply chain, businesses can take a more hands-on approach to quality
control. In a pull strategy, businesses only produce products when they are needed. This allows
businesses to produce only high-quality products.
Sustainable Supply Chain
A pull strategy in supply chain management can help businesses reduce waste, minimize surplus
inventory, and improve overall sustainability. Businesses produce products as they are needed using a
pull strategy.
Better Resource Allocation
A pull strategy in supply chain management can help businesses allocate their resources more
effectively. Businesses using this strategy are not tied up in surplus inventory or overproduction.

7. LIMITATIONS OF PULL STRATEGY

Order Fulfillment: In pull strategy, products are manufactured based on actual customer demand.
However, managing order fulfillment efficiently poses challenges such as lead time reduction, ensuring
product availability, and minimizing stock outs.
Bullwhip Effect: The bullwhip effect refers to the amplification of demand fluctuations as they
propagate upstream in the supply chain. This phenomenon can result in excessive inventory, inefficient
resource allocation, and increased costs.
Technology and Automation:
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Leveraging technology in a pull strategy can enhance visibility, enable accurate demand sensing, and
automate various supply chain processes. Integration of advanced technologies like Artificial Intelligence
(AI), Internet of Things (IoT), and predictive analytics can enable real-time demand monitoring, efficient
order processing, and proactive inventory management.

The synchronous supply chain:

chapter 6

1. DEFINE SYNCHRONIZATION.
The fact of happening at the same time or moving at the same speed as something else; the act of
making something do this.

2. DESCRIBE THE ROLE OF INFORMATION IN THE VIRTUAL SUPPLY CHAIN.

Leading organizations have long recognized that the key to success in supply chain management is the
information system. However, what we are now learning is that there is a dimension to information that
enables supply and demand to be matched in multiple markets, often with tailored products, in ever-
shorter time-frames. This extension of the information system beyond the classical dimensions of simple
planning and control enables time and space to be collapsed through the ability to link the customer
directly to the supplier and for the supplier to react, sometimes in real time, to changes in the market
.The Internet has in many ways transformed the ways in which supply chain members can connect with
each other.2 It provides a perfect vehicle for the establishment of the virtual supply chain. Not only does
it enable vast global markets to be accessed at minimal cost and allow customers to shorten
dramatically search time and reduce transaction costs, but it also enables different organizations in a
supply chain to share information with each other in a highly cost-effective way.
3. EXPLAIN THE FUNCTIONS OF A LOGISTICS INFORMATION SYSTEM?
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4. SHOW THE IMPLICATIONS FOR LOGISTICS.

In the same way that the conventional wisdom in production and manufacturing was to maximize batch
quantities, similar thinking could be found in the rest of the supply chain. Thus we used to seek to ship
by the container or truck load, customers were discouraged from ordering in smaller quantities by price
penalties and delivery schedules were typically based on optimizing the efficiency of routes and the
consolidation of deliveries. Clearly such an approach runs counter to the requirements of a synchronous
supply chain. Under the synchronization philosophy the requirement is for small shipments to be made
more frequently and to meet the precise time requirements of the customer. The challenge to logistics
management is to find ways in which these changed requirements can be achieved without an
uneconomic escalation of costs. There may have to be trade-offs but the goal must be to improve total
supply chain cost effectiveness.

5. EXPLAIN A PRODUCTION STRATEGIES FOR QUICK RESPONSE.

As the demand by all partners in the supply chain for a quick response increases, the more will be the
pressure placed upon manufacturing to meet the customer’s needs for variety in shorter and shorter
time-frames. The answer has to lie in flexibility. As we have already observed, if it were possible to
reduce manufacturing and logistics lead times to zero then total flexibility could be achieved. In other
words the organization could respond to any request that was technologically feasible in any quantity.
Whilst zero lead times are obviously not achievable, the new focus on flexible manufacturing systems
(FMS) has highlighted the possibility of substantial progress in this direction. The key to flexibility in
manufacturing is not just new technology, e.g. robotics, although this can contribute dramatically to its
achievement. The main barrier to flexibility is the time taken to change; to change from one level of
volume to another and to change from making one variant to another. Typically we call this ‘set-up
time’. It will be apparent that if set-up times can be driven as close as possible to zero then flexible
response to customer requirements presents no problem.

Managing risk in the supply chain:

chapter 8

1. WHY ARE SUPPLY CHAINS MORE VULNERABLE?

A focus on efficiency rather than effectiveness

The prevailing business model of the closing decades of the twentieth century was very much based
upon the search for greater levels of efficiency in the supply chain.
The globalization of supply chains
There has been a dramatic shift away from the predominantly ‘local for local’ manufacturing and
marketing strategy of the past.
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Focused factories and centralized distribution

One of the impacts of the implementation of the Single Market within the European Union and the
consequent reduction in the barriers to the flow of products across borders has been the centralization
of production and distribution facilities.
The trend to outsourcing
One widespread trend, observable over many years, has been the tendency to outsource activities that
were previously conducted within the organization.
Reduction of the supplier base
A further prevailing trend over the last decade or so has been a dramatic reduction in the number of
suppliers from whom an organization typically will procure materials, components, services, etc.

2. EXPLAIN THE FIVE SOURCES OF POTENTIAL RISK TO BUSINESS

DISRUPTIONS.

1. Supply risk
How vulnerable is the business to disruptions in supply? Risk may be higher due to global sourcing,
reliance on key suppliers, poor supply management, etc.
2. Demand risk
How volatile is demand? Does the ‘bullwhip’ effect cause demand amplification? Are there parallel
interactions where the demand for another product affects the demand for ours?
3. Process risk
How resilient are our processes? Do we understand the sources of variability in those process, e.g.
manufacturing? Where are the bottlenecks? How much additional capacity is available if required?
4. Control risk
How likely are disturbances and distortions to be caused by our own internal control systems? For
example, order opportunities, batch sizes and safety stock policies can distant real demand. Our own
decision rules and policies can cause ‘chaos’ type effects.
5. Environmental risk
Where across the supply chain as a whole are we vulnerable to external forces? Whilst the type and
timings of extreme external events may not be forecastable their impact needs to be assessed.

3. EXPLAIN THE SUPPLY CHAIN RISK MANAGEMENT PROCESS.

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4. EXPLAIN THE CHARACTERISTICS CRITICAL PATHS.

●Long lead time, e.g. the time taken to replenish components from order to delivery.
●A single source of supply with no short-term alternative.
●Dependence on specific infrastructure, e.g. ports, transport modes or information systems.
●A high degree of concentration amongst suppliers and customers.
● Bottlenecks or ‘pinch points’ through which material or product must flow.
●High levels of identifiable risk (i.e. supply, demand, process, control and environmental risk).

5. HOW TO ACHIEVE SUPPLY CHAIN RESILIENCE?

Because even the best managed supply chains will hit unexpected turbulence or be impacted by events
that are impossible to forecast, it is critical that resilience be built into them. Resilience implies the
ability of a system to return to its original or desired state after being disturbed. Resilient processes are
flexible and agile and are able to change quickly. In this latter respect it is important to realize that
velocity alone is not enough – it is acceleration or the ability to ramp up or down quickly that matters so
far as resilience is concerned. Supply chain resilience also requires ‘slack’ at those critical points that
constitute the limiting factors to changes in the rate of flow. Access to information as rapidly as possible
is also a prerequisite for resilience as we observed in the Nokia/Ericsson case study. Through
collaborative working this information can be converted into supply chain intelligence. Because
networks have become more complex they will rapidly descent into chaos unless they can be connected
through shared information and knowledge. The aim is to create a supply chain community whereby
there is a greater visibility of upstream and downstream risk profiles (and change in those profiles) and a
shared commitment to mitigate and manage those risks.

Entering the era of network

competition: chapter 10
1. EXPLAIN THE IMPORTANCE OF MANAGING THE SUPPLY CHAIN AS A
NETWORK.

1 Collective strategy development

Traditionally, members of a supply chain have never considered themselves to be part of a marketing
network and so have not shared with each other their strategic thinking.
2 Win-win thinking
Perhaps one of the biggest challenges to the successful establishment of marketing networks is the need
to break free from the often adversarial nature of buyer/supplier relationships that existed in the past.
3 Open communication
One of the most powerful drivers of change in marketing networks has been the advent of information
technology, making the exchange of information between supply chain partners so easy and so
advantageous.

2. EXPLAIN THE CHALLENGES OF SUPPLY CHAIN OF THE FUTURE.

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3. EXPLAIN THE MAJOR BUSINESS TRANSFORMATIONS.

1 From supplier-centric to customer-centric

Traditionally supply chains have been designed from the ‘factory outwards’ rather than from the ‘customer
backwards’.
2 From push to pull
Closely linked to the first transformation is the idea of moving from a ‘production push’ mentality which seeks
to optimize operations through level scheduling and long planning horizons to a ‘demand pull’ philosophy in
which, ideally, nothing is made, sourced or moved until there is a demand for it.
3 From inventory to information
Logistics and supply chain management have conventionally been forecast-driven rather than demand-driven.
4 From transactions to relationships
There is a growing recognition that the route to sustained profitability is through building long-term
relationships with selected customers.
5 From ‘trucks and sheds’ to ‘end-to-end’ pipeline management
Over the last two decades there has been a dramatic broadening of the scope of logistics and supply chain
management in many organizations.
6 From functions to processes
Only recently have companies come to challenge the primacy of functions in the organizational structure.
7 From stand-alone competition to network rivalry
The conventional business model has always been that companies succeed or fail on the basis of their own
resources and competencies.
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4. Explain key business transformations and the implications for

management skills.

Managing the global pipeline:

chapter-7
1. EXPLAIN SOME GENERAL PRINCIPLES ORGANIZING FOR GLOBAL LOGISTICS.

●The strategic structuring and overall control of logistics flows must be centralized to achieve worldwide
optimization of costs.
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●The control and management of customer service must be localized against the requirements of
specific markets to ensure competitive advantage is gained and maintained.
●As the trend towards outsourcing everything except core competencies increases then so does the
need for global co-ordination.
●A global logistics information system is the prerequisite for enabling the achievement of local service
needs whilst seeking global cost optimization.

2. WHAT ARE THE DIFFERENCE BETWEEN GLOBAL CO-ORDINATION AND

LOCAL MANAGEMENT?

3. SHOW THE PROGRESSION TO SUPPLY CHAIN EVENT MANAGEMENT

WITH THE HELP OF A FIGURE?
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4. DISCUSS THE SCOPE OF STRUCTURE AND CONTROL?

If the potential trade-offs in rationalizing sourcing, production and distribution across national
boundaries are to be achieved then it is essential that a central decision-making structure for logistics is
established. Many companies that are active on an international basis find that they are constrained in
their search for global optimization by strongly entrenched local systems and structures. Only through
centralized planning and co-ordination of logistics can the organization hope to achieve the twin goals of
cost minimization and service maximization.

5. DISCUSS THE IMPORTANCE OF CUSTOMER SERVICE MANAGEMENT?

Because local markets have their own specific characteristics and needs there is considerable advantage
to be achieved by shaping marketing strategies locally – albeit within overall global guidelines. This is
particularly true of customer service management where the opportunities for tailoring service against
individual customer requirements are great. The management of customer service involves the
monitoring of service needs as well as performance and extends to the management of the entire order
fulfilment process – from order through to delivery. Whilst order fulfilment systems are increasingly
global and centrally managed there will always remain the need to have strong local customer service
management.

Overcoming the barriers to supply

chain integration: chapter 9

1. SHOW SOME REASONS FOR WHY CREATING THE LOGISTICS VISION IS

IMPORTANT?

Making service happen is the ultimate challenge. Whilst it is by no means easy to develop strategies for
service that will lead to improved competitive performance, the hardest task is to put that strategy into
action. How do we develop an organization that is capable of delivering high quality service on a
consistent, ongoing basis? These days most companies are familiar with the idea of ‘mission statements’
as an articulation of the vision of the business. The mission statement seeks to define the purpose of the
business, its boundaries and its aspirations.

2. IDENTIFY THE PROBLEMS WITH CONVENTIONAL ORGANIZATIONS.

Amongst experienced observers and commentators of the logistics management process there is
general agreement that the major barrier to the implementation of the logistics concept is
organizational. In other words, a major impediment to change in this crucial managerial area is the
entrenched and rigid organizational structure that most established companies are burdened with.
There is a great danger that those companies that do not recognize the need for organizational change,
or that lack the will to make it happen, will never achieve the improvements in competitive advantage
that integrated logistics management can bring. The argument advanced here is that the demands of
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the marketplace for enhanced service provision combined with dramatically heightened competition call
for a paradigm shift in the way in which we think about our organizations.

3. HOW FUNCTIONAL BOUNDARIES IMPEDE PROCESS MANAGEMENT?

EXPLAIN.

The process of satisfying customer demand begins with in-bound supply and continues through
manufacturing or assembly operations and onwards by way of distribution to the customer. Logically the
ideal way to manage this process is as a complete system, not by fragmenting it into watertight sections.
Yet that is more or less what happens in the conventional business as we have seen. Not only is this
inefficient, it actually leads to a loss of effectiveness in competitive terms.

4. WHAT ARE THE CORE PROCESSES OF A BUSINESS?

●Innovation (including new product development)

●Consumer development (primarily focused on building loyalty with end users)
●Customer management (creating relationships with intermediaries)
●Supplier development (strengthening upstream and alliance relationships)
●supply chain management (the cash-to-cash process)

5. IDENTIFY A NUMBER OF BENEFITS THAT A COMPANY DERIVES FROM

BENCHMARKING.

●It enables the best practices from any industry to be creatively incorporated into the processes of the
benchmarked function.
●It can provide stimulation and motivation to the professionals whose relativity is required to perform and
implement benchmark findings.
●Benchmarking breaks down ingrained reluctance of operations to change. It has been found that people are
more receptive to new ideas and their creative adoption when those ideas did not necessarily originate in their
own industry.
●Benchmarking may also identify a technological breakthrough that would not have been recognized, and
thus not applied, in one’s own industry for some time to come.