Types of Benchmarking

Types of Bench-marking

Types of bench-marking can be categorized into internal benchmarking, competitive benchmarking, operation benchmarking.

1.    Internal Bench-marking

Internal benchmarking is useful in the organizations, which has similar operation at different location i.e. Branch network of a bank or branches of retails chain. Best performing branches may be used as benchmark for others.

2.    Competitive Bench-marking

In competitive benchmarking the performance of entity is compared with the performance of competitors in the market. In competitive benchmarking gap between performance are identified and strategies to fill those gaps are formulated.

3.    Operational Bench-marking

In operational benchmarking a particular aspect of a department or operation is studied. This type of benchmarking allows studying the leading companies of the world for certain operations improvement. For example inventory maintenance, order handling procedure etc.