3 Ways to Benchmark to Improve Your Supply Chain
Benchmarking has long been recognised as one of the Top 3 management tools to improve Business Performance. And of course that’s particularly true in your Supply Chain, where there are so many moving parts that can impact your costs and service performance.
If you don’t know what other similar business are achieving it’s impossible to know what targets are realistic and achievable for your business.
It would be like training for a 100 metre race without knowing what the best times were at the last race meeting. In business it’s just the same.
There are 3 main types of Benchmarking you can look at.
1. Informal. Measure what you’re doing now, and try to compare your performance with other parts of your business or other businesses that you know well. The only problem with this, is that you need to make sure you’re comparing like with like. That you’re measuring the performance in exactly the same way, and the businesses are similar in operation.
2. Formally. Maybe try to set up a formal structure with other parts of your business, perhaps in different countries or similar business that you know. But make sure there are strict rules in place about what is measured and how it’s measured.
3. Professionally. Engage a professional Benchmarking service. The benefits here are: Exactly the same metrics are measured in exactly the same way, for your business and those who are compared against.
You have access to a sizeable database of results, so that you can make sure your business is being compared against businesses with similar operations. And critically, the database is large enough, that the results are statistically valid, and will give you a solid perspective on where your improvement opportunities are.
We’ve been Professionally Benchmarking Supply Chains for over 25 years, and some of the results have been amazing.
I’ve seen businesses reduce costs by up to 14% and improve service by up to 18% All because Benchmarking showed them what was possible and already being achieved in their industry.
So if you need any further tips or guidance feel free to reach out to me. Best way to reach me is here: LinkedIn (me): https://www.linkedin.com/in/robobyrne/
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