What is Benchmarking? Benchmarking is a systematic and continuous process of searching, learning, adapting and implementing the best practices from within own organisation or from other organisations towards attaining superior performance. Malaysia Productivity Corporation Four Types of Benchmarking 1. Internal Benchmarking A comparison of one specific process within your own organisation or across different departments and business units. Example : Studying and comparing the billing process among various branches / subsidiaries of the company. 2. Competitive Benchmarking A comparison of a specific process with that of a direct competitor. Example : Nokia studying customer problem resolve at Samsung. 3. Functional Benchmarking Focuses on comparison of a specific process externally with a similar one within a broad range of your industry and business line. Example : Xerox studying warehouse order picking operations at L.L. Bean (is an American privately held mail-order , online, and retail company) to help them improve their parts distribution process. 4. Generic Benchmarking A comparison of specific processes from unrelated industries or business lines towards identifying innovation. Example : Municipal Local Authority studying waste management at Henkel International Lubricant.

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Last Updated: 3 April 2019