The document discusses performance measurement in purchasing, defining it as the quantitative or qualitative assessment over time of achieving goals related to purchasing economics, efficiency, and effectiveness. It notes difficulties in measuring purchasing performance due to lack of clear definitions and standards. Finally, it discusses approaches to measuring purchasing performance like accounting, auditing, benchmarking, and management by objectives, providing examples of benchmarking criteria.
8. Benchmarking Purchasing Research, Performance & Ethics Types of Benchmarking INTERNAL BENCHMARKING A method comparing the performance of an operating unit or function within an organisation with those of a similar business within the same industry. FUNCTIONAL BENCHMARKING A method of comparing internal functions with those of the best external practitioners of those functions irrespective of the industry in which they are in (this may also be referred to as operational or genuine benchmarking). COMPETITIVE BENCHMARKING A method of comparing organisational performance against that of competing organisations. STRATEGIC BENCHMARKING A method for evaluating alternatives, implementing strategies and improving performance by understanding and adapting successful organisations who may be competitors or partners.
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