Everyone likes Benchmarking.
But, it may hide more than what it reveals.
Instead of benchmarking, are you better than before?
Why Benchmarking for Supply Chain is Not Easy
Benchmarking is like comparing how well you did on a test with how well your classmates did on the same test. It’s a way for companies to see how well they are doing compared to other companies in the same business.
But, it can be tough to do this for the supply chain because:
– Supply chains are always changing, but benchmarking is done at a specific time
– It’s hard to find companies that are similar to compare with
– It takes a lot of work to get accurate information
– There’s not always good data available
– Just looking at one thing (like how fast they can get things to the store) doesn’t tell the whole story
It’s important to do benchmarking because it helps companies see where they can improve. But, it’s not always easy.
For example, a company might think that by having a bigger store, they will sell more products. But, in reality, having a smaller store with a more curated selection can lead to better sales because it’s easier for customers to find what they’re looking for. This is an example of how just looking at one thing (like store size) doesn’t tell the whole story.