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Saturday, April 23, 2022

Supply Chain Benchmarking

Important to compare to competitive uses, and changes over time and industry changes.  

Why is Supply Chain Benchmarking Important?   By Marisa Brown in APQC

Supply chain benchmarking is important because managers need to:  understand how their supply chains compare to competitors’, evaluate “as is” conditions before they can determine what to fix,  encourage innovation, compare performance across business units, and leverage data for restructuring and change.

APQC defines benchmarking as the process of comparing and measuring your organization against others, anywhere in the world, to gain information on philosophies, practices, and measures that will help your organization take action to improve its performance. Benchmarking gathers the tacit knowledge—the know-how, judgments, and enablers—that explicit knowledge often misses.

The benefits of supply chain benchmarking start with the task of collecting the necessary data and converting it into industry-standard practices and metrics. The simple—and not so simple—act of gathering key operational measures on one scorecard provides a broad snapshot of current performance. This data-gathering process can be a useful cross-functional, team-building exercise when it helps managers who are ultimately responsible for making changes better understand what needs to be done.

Benchmarking can be seen as the systematic process of searching for best practices, innovative ideas, and more productive operating methods. Strategic benchmarking helps make sure that improvement efforts and resources are directed at activities that will move the organization forward.

Comparative information that shows key performance gaps can spark change within underperforming areas and focus limited resources. Of course, any benchmarking activity is pointless if it doesn’t prompt an organization into action. Download APQC's free infographic Ensuring Supply Chain Success with Measures to begin your Supply Chain Benchmarking journey. 

How is Benchmarking Done in Supply Chain?  .... ' 

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