Benchmarking Essay Example | Topics and Well Written Essays - 2000 words

Benchmarking - Essay Example It is useful in assessing the company’s strength or weakness in the purchase process vis-à  -vis the suppliers and competitors. The concept of quality and delivery schedules got more importance than price. It also became possible to evaluate the performances of the various vendors against benchmarking and ABC analysis made them perform better if they wanted continued patronage from the Purchaser. The Purchaser too became accountable as his track record now became transparent and in turn his position became respectable in the company. These actions finally grow into Best Practices. Best Practices evolve over a period of experimentation and result in setting parameters of quality and terms. In the past ten years, benchmarking has become a common practice in purchasing departments (Carr and Smeltzer, 1999). This has helped in getting better products at better prices and on better terms. Therefore Benchmarking has made a positive impact on the purchasing function and has improved performance. A high performance level of purchasing functions results in high levels of business performance. The ultimate goal is to deliver total quality and 100 percent value to the end customer (Zairi 1994) and it is this standard or benchmark that makes it possible. According to Zairi (1988) â€Å"Benchmarking is anything taken or used as a point of reference or comparison. Something that serves as a standard by which others may be served; it is all to do with anything or something that is comparatively measurable†. (Zairi 1988) The core of benchmarking practice is the sequence of identifying the best and most suitable standard of quality for products, services, or processes, and making the improvements necessary to reach those standards. These are described as best practices. (Bhutta and Huq 1999). Best Practices normally start with manufacturing as this is the core of the enterprise and on this strength organisations aim