The document discusses benchmarking best practices to improve processes. It suggests benchmarking supply chain operations using SCOR, which provides a framework to facilitate cross-organizational benchmarking in areas like planning, sourcing, production, and delivery. Companies should benchmark competitors as well as firms in unrelated industries. The goals of benchmarking are to identify inefficient processes, measure value added at each step, find reasons for delays, and implement improvements. Planning benchmarking involves collecting and analyzing data, reporting findings, learning from others, and institutionalizing changes.

1. sushil pd. sharma 1

2. Ongoing process of measuring products, services, practices &
processes against the best that can be identified in order to:
Learn about & improve best practice.
Achieve realistic targets.
Integrate improvements into your strategy.
Use best practice as inspiration for innovation.
Be externally focused.
Be purposeful about improvement.
Measure improvement.

3.  What to Benchmark?
› Supply Chain Council suggests:
 SCOR (Supply Chain operations reference)
 Plan, Source, Make & Deliver. SCOR is designed to
provide a common framework to facilitate cross
organisational benchmarking.
 Who to Benchmark with?
› Competitors
› Significant opportunities for firms in non competing
industries
sushil pd. sharma 3

5.  Identify the steps that consume the most time
resources.
 Identify processes that take too long or vary
greatly in time.
 Identify Points of delay.
 Estimate the value added by each step and
judge the value against the cost.
 Consider the reasons for problems and how to
improve specific activities or processes.
sushil pd. sharma 5

6.  Planning:
 Collection of data
 Analyze data
 Reporting
 Learning from best practices
 Plan and implement
 Institutionalize the learning

7.  Identify point of delay and other pinch points
 Estimate the value added by each step and judge the value against
the cost
 Consider the reasons for problems and how to improve specific
activities or processes
sushil pd. sharma 7

8. It process of measuring performance of supplier and distributor against the best
competitor.
The main purpose is to bring effectiveness and efficiency in inbound and
outbound logistics.
Company use outsourcing and integrating technology.
Issues of suppliers and distributors benchmarking:
 Willingness to work as co-maker and partner
 Commitment to the continuous improvement
 Acceptance of improvement and changes
 Focus on throughout time reduction
 Flexible logistics system

9. Suppliers Internal Distributors
Quality
 On-line performance
 Stock availability
 Communication
 Schedule Integration
 Co-maker ship
 Through out time
 On-line performance
 Stock availability
Communication
 Requirement planning
 Partnership
 Value added service
 Customer concern
 Delivery performance

10. Benchmarking
priorities
Strategic Importance
Processes that are
competitively critical
Organisational Readiness
Processes carried out
by “ready to improve
personnel”.
Make V Buy Economics
Processes with high
impact on value and
hard to outsource
Relative impact on
business.
•High total cost
•High revenue
•High human input
Setting Benchmarking Priorities
sushil pd. sharma 10