Topic > What are the disadvantages of purchasing and supplying…

Benchmarking is an organized system used to establish an organization's best practices from which future companies can learn and achieve success. According to Fitz-enz (1992), these best practices are a collection of a company's administration, production, sales and service provision. Benchmarks are a means for managers to determine whether their organization's productivity is reaching expected levels and, if not, where and how it can be improved. When working within supply chain management, benchmarking can be used in several ways. In recent years, benchmarking has shown that, with cooperation between buyer and supplier, the identification and implementation of applicable data can be used to refine or simplify the flow within the supply chain. In turn, this is a cost reduction. However, this data can only be collected through comprehensive field work carried out and contributions collected from all parties involved. With the active involvement and participation of suppliers in the benchmarking initiative, companies should identify value-added strategies and practices to improve supply chain performance and competitiveness of integrated supply chains (Gunasekaran, 2001, p..