Benchmarking is:
A)A system of performance metrics that seeks to motivate suppliers to perform better.
B)A practice where companies attempt to learn and apply the best practices of other companies.
C)A system of marking defective inbound inventory so it can quickly be identified for return to the supplier.
D)A program where suppliers compete for contracts,but those companies who are outbid are provided advice for winning future contracts

Question

Quizplus · Accepted Answer

Benchmarking is a practice where companies attempt to learn and apply the best practices of other companies. It involves comparing one's own business processes and performance metrics to industry standards or best practices of other companies to identify areas for improvement. Option A is closer to supplier performance management, Option C is about marking defective inventory, and Option D is about suppliers competing for contracts, neither of which are the correct definitions of benchmarking.

Benchmarking Is