technique of benchmarking

in supply chain management, various techniques of benchmarking can be employed to compare

performance, processes, and strategies with industry standards or best practices. Here are some
different techniques of benchmarking in supply chain management:

Competitive Benchmarking:

Comparing supply chain performance, processes, and strategies with direct competitors in the
industry.

Helps identify areas of strength and weakness relative to competitors.

Provides insights into industry best practices and benchmarks for improvement.

Internal Benchmarking:

Comparing supply chain processes and performance metrics within different departments or units
of the same organization.

Allows identification of best practices within the organization and promotes knowledge sharing.

Facilitates standardization and optimization of processes across departments.

External Benchmarking:

Comparing supply chain performance and practices with those of other organizations outside the
industry.

Provides broader insights into different approaches and best practices across industries.

Helps in adopting innovative ideas and strategies from unrelated industries.

Functional Benchmarking:

Comparing specific functions or processes within the supply chain across different industries or
organizations.

Focuses on benchmarking particular functions such as logistics, inventory management, or

procurement.

Allows organizations to adopt best practices from different industries to improve specific aspects
of their supply chain.

Strategic Benchmarking:

Comparing overall strategies and long-term goals of the supply chain with industry leaders or best-
in-class organizations.

Focuses on understanding competitors' strategic priorities, capabilities, and future directions.

Helps in aligning supply chain strategies with overall business objectives and industry trends.
Performance Benchmarking:

Comparing specific performance metrics, such as cost, quality, delivery time, or customer
satisfaction, with industry benchmarks or best practices.

Provides quantitative insights into performance gaps and areas for improvement.

Enables organizations to set realistic performance targets and track progress over time.

Process Benchmarking:

Comparing specific supply chain processes, workflows, or practices with industry benchmarks or
best practices.

Focuses on improving efficiency, reducing waste, and enhancing quality within specific processes.

Allows organizations to identify and implement process improvements based on successful

practices adopted by others.

Each of these benchmarking techniques has its own advantages and applicability depending on
the organization's goals, industry, and competitive landscape. Combining multiple techniques or
customizing them to suit specific needs can provide comprehensive insights and drive continuous
improvement in supply chain management..

by ass. prof. utkarsh Singh parihar