Puja Agrawal presented on setting benchmarking priorities. Benchmarking involves continuously measuring a company's products, services, processes, and practices against industry leaders. When setting benchmarking priorities, companies consider which processes have the highest impact on business economics like costs and revenue. They also consider processes that are strategically important to future success and those where personnel are ready to improve. Processes determined to have high impact on performance but are difficult to source from suppliers are also priorities. The goal of benchmarking is to maintain world-class status by developing logistics strategies based on customer needs and ensuring leading edge processes.

1. PRESENTATION ON
SETTING BENCHMARKING
PRIORITIES
Presented By:
Puja Agrawal

2. What is Benchmarking?
Competitive Benchmarking is
the continuous measurement of the company’s products,
services, processes and practices against the standards of
best competitors and other companies who are recognized
as leaders.
Who are doing it?
Xerox started the practice in 1981, then became popular
in all major international companies, e.g. Motorola
There are international organizations specialized in
this service, e.g., Global Benchmarking Council,
American Productivity and Quality Center
Asian Benchmarking Clearinghouse, Hong Kong
Benchmarking Clearinghouse

3. Setting Benchmarking Priorities
Which processes and entities in the supply chain are of
strategic importance
Which processes and entities have a high relative
impact on the business economics (costs, revenue,
asset performance, and human productivity)
Where there is a choice between ‘make’ and ‘buy’
(processes of high impact on performance /productivity
and hard to source from suppliers)
Where 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 ‘ready’ 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

5. Marketing Logistics Strategic Goal
Relativedifferentiation(Effectiveness)
Relative delivered cost (Efficiency)
low
High
LowHigh

6. Conclusion
Benchmarking vital tool in maintaining world class
status.
Successful 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.

7. References
Christopher, M., Logistics and Supply Chain
Management, 3rd edition, FT-Prentice Hall,
2005.