What is benchmarking?
Benchmarking is a method by which companies compare their effectiveness with the efficiency of their best competitors by analyzing all the processes and functions of the selected companies. This analysis is based on benchmarks. The company can focus on them, adapt to their situation and thereby optimize the relevant business processes. The key idea is to identify the differences, their causes, and opportunities for improvement.
Benchmarking is a continuous comparison of products, services, as well as processes and methods with several companies. The main question in benchmarking is: What do others do and why others are more successful? Benchmarking, therefore, helps to make certain areas of activity, processes, and tasks in a company better, more efficient, more successful and, above all, to determine the winning cost-benefit ratio according to sample companies.