Benchmarking has been one of the most popular tools when measuring cost effectiveness is concerned. The tool measures the performance and suggests ways to improve the performance of the goods, products, services and production. Irrespective of the industry based, benchmarking has helped millions of business entities to reap the benefit of fruitful utilization of the capital. Business benchmarking helps to fill the gap amongst the various industrial processes and to achieve a competitive benefit on market scale. For the companies, the benchmark consultants are the best hire.

A benchmark consultant has numerous areas of concern. Depending upon the priority sectors and the nature of their job, the benchmark consultants are categorised as-

Cost Reduction Specialists

Managing Freight and Transport

Energy Cost Reduction Consultant

Logistics Management

Managed Labour Hire Consultant

Telco cost management

Waste Management Consultant

The benchmark consultants have the entire responsibility to maximise the revenue of an organisation. Therefore, they need to be competent, well versed, practically sound, and experienced in carrying out the business financial management of the company. The required traits for a benchmark consultant are-

Should know the purpose and the priority of benchmarking

Should understand the theme of benchmarking and competition

Understanding benchmarking as an integral part of company management

Benchmarking- A Tool to Determine the Best Practices

Benchmarking is a tool to measure the excess cost curtailment. It measures the best practices and tries to implement those practices for the best result. It is all about the transition from “what” to “how”. Benchmarking is not as simple as it looks. Benchmarking is completely dependent on the guidelines laid by the companies. Some of the companies put stress on benchmarking. They have strict guidelines and a different department to look after the financial management section. Benchmarking is dependent on the size of the organisation and the productivity.

Benchmarking is not about making comparisons or inquiries of other companies business functioning. It is about accessing the won company and making decisions based on that.

The terms- benchmarking and market research are often mixed and are co-related. However, it should not be like that. Business benchmarking and research or market analysis is determined based on two different things. Available resources and time are the determining factors that differentiate the benchmarking and market research.

According to the managed labour hire consultant, various places where benchmarking is better than the market research are-

Implementation

When considered about the implementation, benchmarking puts stress on the best practices while market research aims to study the performance indices.

Determination

When market research thinks of temporary fixation of problems, the business-benchmarking stands in support of permanent improvement. In addition, it continuously strives for over-all improvement.

Accessibility

The business standards desire to collaborate with somebody to allow the continuous flow of the knowledge

Competitiveness

Market research is simply an easy-go type measurement parameter while benchmarking is a strict and always competitive in nature. It strives to maintain a competition in the market by bettering each time.

Client Satisfaction

Benchmark continuously changes with the needs and time. It adapts to what is the best in the economy

Classification of Benchmarking

The different forms of benchmarking are classified into three broad categories-

Internal

It is the type of benchmarking used for the companies that have an already established business surveys. Established companies focuses on some of the best practices all from some of the best companies of the world. According to the size of the company and the market strength, internal benchmarking is equally necessary in cases the similar industries are absent or are not easily available.

Competitive

It is considered as the healthy practice practiced by the benchmark consultants. It enables them to evaluate the position, strength of the company after accessing the competitor companies. Competitive benchmark suggests modes for improvement and helps a company with its performance targets.

Strategic

It is all about going out from the company and then accessing the various parameters. It includes the major factor of judging the level of customer satisfaction with the goods and services irrespective of the industry type. In short, it judges the basic parameters like cost, time etc.

Every individual within a company is responsible for contributing towards saving the resources. The business consultants have always welcomed the innovative ideas, feedbacks and suggestions that would help them to put a check on the worthless expenditure. The different business benchmark consultants have the full responsibility to look after the goods and services.

Benchmarking is a single term but has a diverse meaning in itself. It has the entire world embedded into it. It is, at present days, the backbone of any company. The company or industry owners have become aware about saving their capital by minimising the financial leakage of any form. They have directed the business consultants strictly regarding the strict implementations of business benchmarking norms and policies.