Have you ever considered the best way to identify strengths and weaknesses in your company’s supply chain management? Or, have you focused on how to prioritize opportunities in improving supply chain components? For supply chain managers, it can be challenging to set a market strategy and tactical goals because there could be too much information that is poorly organized or has no reference points. This is where benchmarking comes into play. Benchmarking measures the performance of company’s supply chain by considering quantity, value and time. Benchmarking formulates a tangible measure of the efficiency of main processes in the supply chain and serves to create a solid foundation of an organization’s performance. It also measures the impact of each improvement made by managers subject to proper measurement indicators.
Based on different purposes and outcomes, benchmarking can be divided into qualitative and quantitative.