What are the goals of benchmarking

Question

What are the goals of benchmarking?

Answer 1

Benchmarking entails comparing how various companies perform different value chain activities.

The objects of benchmarking are:

i. To identify the best practices in executing an activity.
ii. To study how other companies have actually achieved better results or lower costs in performing benchmarked activities.
iii. To take action to enhance a company’s competitiveness whenever benchmarking reveals that its results and its costs of executing an activity don’t match those of other companies.