BENCHMARKING
Benchmarking is a valuable method by which an organization can use to measure their performance and internal processes. By comparing themselves with organizations that in excel in best business practices, top management can use benchmarking as a tool for driving continuous improvement throughout the organization and to gain advantage over competitors such as reducing costs, increasing productivity and better aligning product (Fleisher amd Bensoussan, 2007). Benchmarking began in the late 1950s as a natural development of early Japanese practices focusing on a clear desire to improve. Then, Xeros Corportation in America adopted a similar vigorous approach in 1979 which start the term “Benchmarking” by investigating the practices of Fuji Xerox in Japan. The improvement opportunities that were identified and put into place resulted in Xerox’s benefits and let to Best Practice Benchmarking (Bendell et al., 1993).

Table: Advantages and disadvantages of benchmarking ADVANTAGES | DISADVANTAGES | Powerful Competitive Analysis Tool | Copycat syndrome | Objective stretch goal setting & performance measurement | High rate of failure | Flexibility | What works well in one organization might not work in another | Removal of blind spots | Benchmarking is resource intensive | Improves cost efficiencies & quality | No firm does everything the best | Not reinventing the wheel but redesigning it | Low-performing firms have a disadvantage | Media recognition | Some high-performing companies may not be willing to share information | Requirement for other certifications | Process for applying the technique | Creates an innovative culture open to new ideas | |

Table: Example of a Benchmark Evaluation Performance Data | | | | Avg. # of daily packages delivered to correct destination | 300 | 200 | 100 | # of packages arriving late