Benchmarking refers to the continuous process of measuring, products, services and practice against competitors recognized by industry leaders. Benchmarking can’t be performed once and discarded thereafter in the belief that the task is complete. It must be a continuous process because industry practices constantly change and industry leaders constantly get stronger.
Moreover, benchmarking is viewed as a continuous process used to measure performance gaps, to establish where best practices are and to introduce change capable of closing identified gaps. Learning by borrowing from the best and by adopting their approaches to fit your own needs is the essence of benchmarking.
Companies from all different industries use benchmarking to gauge their success and pin their shortcomings. The general process of benchmarking involves identifying problem areas. Selecting top competitors who exceled where companies fails short and making the
necessary changes. In today’s economic environment, doing what you’re always told even if you do it very well is not acceptable.
Under the pressure to contain the costs and produce results, despite challenging circumstances, entities must transform rather than simply improve their operations. This means adopting the philosophy methods and processes that will make a firm or organization to be the best. What makes an organization to be the best in procurement will vary for each entity.