1. 1

Benchmarking refers to a process where a company measures products, services, and practices against those of its strongest competitors. It has a significant impact as far as the strategic plan of the organization is concerned. Benchmarking is a tool for managers to determine whether the company performs certain activities and functions efficiently (Camp, 1994). It also helps to determine whether the company’s costs are in line with those of competitors thus making improvement within the organization. The reason behind benchmarking is to measure internal operations against external standard.

QN.2

Benchmarking has a significant impact on the supply chain management and performance. Benchmarking helps the company to identify best practices for a better supply chain performance. Benchmarking helps in implementing a proper way of coordinating resources within the organization (Camp, 1994). For example ensuring proper supply chain costs, controlling all the operations by comparing to those of other competitors, comparing the organizational structure with that of the competitors, ensuring effective technology, and looking on how to collaborate with the supply and logistics service providers.

QN.3

There are challenges that are associated with benchmarking and they limit organizations to actively get involved in it. Some of those challenges are encountered during the process for example difficulty in getting suitable partners (Andersen & Pettersen, 1996). It is also hard to compare organizational data hence difficult to make appropriate decisions. Some organizations face resource constraints and this limits most organizations. Additionally, organizations face resistance from the staff.

QN.4

To develop and maintain a benchmarking environment, first of all, organizations need to understand the purpose of benchmarking in order to make the best use of it. It is also important for the organization to get best partners suitable for benchmarking. Finally, organization should learn of the best business practices from the Business Performance Improvement Resource (Andersen & Pettersen, 1996).

1. 5

Benchmarking marking relates to quality improvement in a way it involves comparing business best practices with other best performing competitive organizations and applying them in your organization and by doing so, quality can be achieved.

References

Camp, R. C. (1994). Business process benchmarking: Finding and implementing best practices. Milwaukee, Wis: ASQC Quality Press.

Andersen, B., & Pettersen, P.-G. (1996). The benchmarking handbook: Step-by-step instructions. London [u.a.: Chapman & Hall.