Supply Chain - Benchmarking Supply Chain Performance
External benchmarking of supply chain operations is carried out to compare a company’s operations with those of its competitors, in order to highlight areas for performance improvement. Benchmarking in this way can be problematic, as it is difficult to carry out true comparisons for operations with different characteristics.
An alternative approach is to carry out synthetic benchmarking of logistics operations. This method breaks each activity into its component parts and uses modelling techniques to estimate the performance standards that can be achieved for each one. The performance can then be calculated for the overall activity and compared to actual results, allowing gaps to be identified and addressed.
Total Logistics carries out synthetic benchmarking, using models within its Insight suite of supply chain models. The results are combined with those of external benchmarking, in order to highlight potential areas for improvement.
Total Logistics provides practical strategic supply chain consultancy across all industry sectors throughout Europe and the rest of the world. For more information contact us on +44 (0)118 977 3027, or send an e-mail to info@total-logistics.eu.com.
This Supply Chain glossary article was last updated on 8th November 2007
Total Logistics5 Market Place, Wokingham, UK, RG40 1AL
T: +44 (0)118 977 3027 F: +44 (0)118 989 0081
E: info@total-logistics.eu.com