LOG490 CA3

Benchmarking: A benchmark is a standard point of reference that is normally used for the measurement of quality and value. With this in mind and considering business, benchmarking is the process by which an organization establishes the standards to determine the progress. It is a tool used both internally and externally (Camp 2006). It is divided into two basic parts that is the performance measurement and the continuous improvement. There are three basic types of benchmarking that is the kind where comparison of within the same organization is done then there is the one that compares relative service performance and the final type compares the supply chain performance of different firms although not necessarily competing ones. Benchmarking involves the process of data collection analysis and reporting. (Cheney 1998) It is a very valuable tool in the improvement of product innovation. The product innovation helps in delivering top line growth, the creation of new customer value and the establishment of a competitive advantage to the organization. The improvement of product innovation is important because it helps the organization face certain challenges. The challenges associated with product innovation include the following: The complexity of the process since it requires cross functional collaboration throughout the organization. There is also the need for cross functional management teams for the decisions on new product investments. It also enables the company to zero in on certain specific problems. Isolation of high value improvement opportunities is also administered where strengths that should be preserved are identified. Key stakeholders are involved in the consensus building for the company (Damelio 1998). The inclusion of the second phase related to continuous improvement is typically a step forward from the traditional benchmarking approaches since the goal of this second phase is to select best improvement procedures. The improvements could be in sectors like the on time delivery which could be learnt from much more established companies. On time delivery can be improved by the changing of collection schedule, increasing capability of transportation vehicles and rearranging the routes for delivery. The improvements are done by entering the ratings of sub criteria for each changing opportunity into the expert choice where best practices come out. (Damelio 1998) The second phase gives a quantitative model for managers to select the best practice that is gained from industry leader. The measurement system derived can be used to make judgments both qualitative and quantitative which are the attributes of a standard one. As managers are the decision makers then their service is required in the selection of the best practices after the customers were involved in the first phase. Since diffe...