Supply chain Benchmarking

 Hello Everyone I am Dharunanand R, pursuing my MBA second year from Amrita School of Business, Coimbatore. In this blog let's explore "Supply chain Benchmarking", what is it why do we do it and how do we do it.

 So what is benchmarking?, A benchmark is an old sort of woodworking term  where you would literally put a mark on the bench and if you know cutting bits of wood you basically could measure every bit of wood you're cutting against that so it all come out the same so it's a benchmark. In terms of business what a benchmark is, A measure of performance so that we can start to track over time how our performance is going and ideally how it compares to others.

A supply chain benchmarking  is any sort of business benchmarking to rate our performance against the performance of others and we're generally doing that to understand the gap in performance and what we need to do to lift our game to improve our performance to be nearer the best.  So it is recognized as probably one of the best management tools out there benchmarking find out what your current performance is tick find out what the performance is like in your industry and are you below that above that tick and then start to identify the gaps in performance and then you can work out how you're going to close that gap and improve that in a nutshell is supply chain benchmarking.

If you want to really use benchmarking effectively you've got to look externally and you've got to try and find some metrics on other businesses in your industry maybe internationally what are the best in class companies doing and that's where you can really stretch and do a lot better.