How can you use benchmarking to improve supplier selection?
Benchmarking is a process of comparing your performance, processes, and practices with those of other organizations that are recognized as leaders or best in class. Benchmarking can help you identify gaps, opportunities, and areas for improvement in your own operations, as well as learn from the experiences and strategies of others. In this article, you will learn how you can use benchmarking to improve supplier selection, one of the most critical aspects of logistics management.
-
Define evaluation criteria:Establish clear qualitative and quantitative benchmarks to assess suppliers. This ensures a balanced decision-making process that considers professionalism, accountability, and relevant metrics.### *Diversify your supplier base:Avoid dependency on a single supplier by maintaining a diverse pool. This mitigates risks and ensures operational stability even if one supplier faces issues.