Key Concept Explanation
Benchmarking refers to the comparison of a company's products and services to the best practices available in the market. The best practices could be in the form of market conditions already existing or the standards set by the organizations that are excelling in the market. Benchmarking may target aligning a company's supply chain management practices with that of the best companies at it. In the end, the venture benefits by having an increased ability to monitor the trends in the market efficiently and respond positively to them. In the long run, benchmarking is essential to a company that is willing to reorganize operations in supply chain management (Tatoglu et al., 2015).
The choice of benchmarking as the topic is because of its essentiality to the companies that practice it. Benchmarking is vital for a company’s performance in all business environments. Primarily, benchmarking provides a sense of continuity to a company’s aspects such as the strategy and mission statements goals. Therefore, the other reason behind benchmarking pivots on the curiosity it draws in researching it. Based on curiosity, the aspects of benchmarking are studied and applied to real-life situations. For example, benchmarking could be done by a newly started venture to help it through the growth and establishment period.
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Comparison
Tatoglu et al. (2015) explain that benchmarking in supply chain management is fundamentally based on the idea of the acquisition of the best qualities of a particular organization or a certain set quality standard. The article has a similar idea on what benchmarking is as the textbook. The article suggests that benchmarking is practically essential to teams, especially from the same sector or industry.
On the other hand, according to Taticchi, Garengo, Nudurupati, Tonelli, & Pasqualino (2014), benchmarking in operations supply chain management could be disadvantageous. Firstly, benchmarking forces an organization to suddenly adopt new strategies to boost performance. The challenge goes to the leaders as they make decisions to come up with the best policies to keep up with their role model companies' standards. The articles approach regarding benchmarking differs with the textbook in the above-stated aspects.
Kaliani-Sundram, Chandran, & Awais Bhatti (2016) outline the effects of benchmarking in the operations supply chain management in the Malaysian electronics sector. First and foremost, benchmarking acts as a motivator to improved organizational performance. Secondly, benchmarking contributes to the evaluation of a company's performance about the other companies, as well as the market. Thirdly, benchmarking enables a firm to foretell the future challenges and come up with strategies to alleviate them. The article is an addition to the information provided in the textbook regarding benchmarking.
Article Summary
Tatoglu et al. (2015) enunciate on the connection between supply chain management, information systems, and organizational performance. The three variables are linked to benchmarking. Emergent SMEs are highly adopting recent developments on the information systems, not only in Turkey and Bulgaria but also in all parts of the world. Information systems have revolutionized supply chain management. Today's operations supply chain management is based on technological advancement. Additionally, the improvement of supply chain management has been primarily contributed to by the incorporation of benchmarking among the SMEs.
Information systems have simplified benchmarking by reducing the time used for research and the readjustment of the operations to match the set standard requirements and the higher performing ventures than themselves. Improved services in the SMEs owe to the introduction of information systems in supply chain management. Notably, benchmarking has more positive effects on the organizations than the negative ones. When appropriate benchmarking is conducted, the beneficiary organizations inherit the desired qualities from the companies they want to emulate. The best conditions serve as a basis of the need for improvement and coming up with different strategies, aligned to available organizational information systems and supply chain management that finally leads to improved operational performance.
Biblical Integration
"Sanctify them by your truth. Your word is truth" NKJV, John 17:17. The Bible serves as the benchmark to evaluate the authenticity of the introduction of a new doctrine. In the same way, organizational leaders should base their benchmarking principles on Christianity. "…hath not risen a greater than John the Baptist…" NKJV, Matthew 11:11. Jesus Christ was urging the believers to emulate John the Baptist as he had the best qualities. Similarly, the Bible advocates for benchmarking in operations. "Prepare your work outside; get everything ready for yourself in the field, and after that build your house." ESV, Proverbs 24:27. The bible advises ventures to plan for their operations adequately, and afterward head out to execute them. The idea could be implemented in organizing for benchmarking.
Application
Wang, Gunasekaran, Ngai, & Papadopoulos (2016) explain the use of benchmarking to the real world business platforms. Benchmarking leads to the ability of a venture to execute big data analytics. This contributes to safer storage and processing of data in supply chain management. The secure storage and processing of data lead to the reliability of the operations supply chain management in an organization.
The emergence of green supply chain management amongst organizations is a milestone in the operational aspects of the companies. Green supply chain management is involved in the sustainable operational performance, and at the same time integrating the need for environmental conservation. Benchmarking has increased the popularity of green supply chain management across the world.
Annotated Bibliography
Tatoglu, E., Bayraktar, E., Golgeci, I., Koh, S. L., Demirbag, M., & Zaim, S. (2015). How do Supply chain management and information systems practices influence operational performance? Evidence from emerging country SMEs. International Journal of Logistics Research and Applications, 19(3), 181-199.
Information systems have altered mainly the operations in supply chain management. As a result of technology, some firms have adopted the best practices that have enabled them, to be outstanding in their sectors. The already existing and successful enterprises in the market have based the need for benchmarking which has advantaged small and medium-sized businesses. Mainly, benchmarking has been the copying of an organization's desirable qualities in operations supply chain management by another institution. Information systems in the ventures have enabled them to have an efficient benchmarking, and the passage of the desired qualities to the other beneficiaries (Tatoglu et al., 2015).
Taticchi, P., Garengo, P., Nudurupati, S. S., Tonelli, F., & Pasqualino, R. (2014). A review of decision-support tools and performance measurement and sustainable supply chain management. International Journal of Production Research, 53(21), 6473-6494.
Decision-making is a very elemental aspect of proper operations supply chain management. Leaders of various organizations have to possess decision-making skills to ensure performance. Sound decisions lead to excellent organizational performance. Equally essential to supply chain management is performance measurement. Performance measurement is contributed to by some factors. One of the elements is benchmarking. Benchmarking leads to sound decisions amongst a company's management. Also, benchmarking poses a challenge to the leaders due to the pressure exerted on them regarding improving the performance of operations chain management by coming up with technologically-inclined strategies. Therefore, benchmarking brings up the challenge of maintaining a sustainable supply chain management (Taticchi, Garengo, Nudurupati, Tonelli, & Pasqualino, 2014).
Kaliani-Sundram, V. P., Chandran, V., & Awais Bhatti, M. (2016). Supply chain practices and performance: the indirect effects of supply chain integration. Benchmarking: An International Journal, 23(6), 1445-1471.
The effects of benchmarking are evident in today's market. One of the evidence is the overall improvement in performance of the businesses, especially the small and medium-sized enterprises. There is complexity in the relationship between benchmarking, supply chain integration, and supply chain management. Firstly, benchmarking is the most apparent motivation towards skyrocketing performance in supply chain management. Organizations share qualities that help others in their strategic improvement. Apparently, benchmarking is also a key indicator of performance and allows firms evaluate their position in the market about other related organizations. Benchmarking also has a futuristic aspect in that it helps the teams plan for future speculated shortcomings (Kaliani-Sundram, Chandran, & Awais Bhatti, 2016).
Wang, G., Gunasekaran, A., Ngai, E. W., & Papadopoulos, T. (2016). Big data analytics in Logistics and supply chain management: Certain investigations for research and applications. International Journal of Production Economics, 176, 98-110.
Big data analytics, especially in supply chain management is a vital aspect of state-of-the-art organizations. Benchmarking has led to analytics in two ways. The first way is to stress on the need of data analytics in growing businesses. The second way is contributing to the passage of the analytics skill to the other organizations. Owing to the rapid increase in the amount of data organizations have to deal with, it is inevitable for the various agencies to acquire big data analytics skills and integrate them into operations supply chain management. Benchmarking is an essential tool for the acquisition of the analytics skill (Wang, Gunasekaran, Ngai, & Papadopoulos, 2016).
Fahimnia, B., Sarkis, J., & Davarzani, H. (2015). Green supply chain management: A review and bibliometric analysis. International Journal of Production Economics, 162, 101-114.
Supply chain management has improved in the recent past and the present. One of the most important innovations has been green supply chain management. Eponymous the symbolic color of the environment, green supply chain management targets the integration of social responsibility in organizational operations specifically in taking care of the surroundings of a venture. Ostensibly, benchmarking has played a chief role in the spread of GSCM across the globe. As organizations inherit the desirable qualities in their quest for improvement in business performance, they also acquire the responsibility towards the natural environment. The acquisition contributes to the tremendous growth of the popularity of green supply chain management (Fahimnia, Sarkis & Davarzani, 2015).
References
Fahimnia, B., Sarkis, J., & Davarzani, H. (2015). Green supply chain management: A review and bibliometric analysis. International Journal of Production Economics , 162, 101-114.
Kaliani-Sundram, V. P., Chandran, V., & Awais Bhatti, M. (2016). Supply chain practices and performance: the indirect effects of supply chain integration. Benchmarking: An International Journal, 23(6), 1445-1471.
Taticchi, P., Garengo, P., Nudurupati, S. S., Tonelli, F., & Pasqualino, R. (2014). A review of decision-support tools and performance measurement and sustainable supply chain management. International Journal of Production Research, 53(21), 6473-6494.
Tatoglu, E., Bayraktar, E., Golgeci, I., Koh, S. L., Demirbag, M., & Zaim, S. (2015). How Do Supply chain management and information systems practices influence operational performance? Evidence from emerging country SMEs. International Journal of Logistics Research and Applications, 19(3), 181-199.
Wang, G., Gunasekaran, A., Ngai, E. W., & Papadopoulos, T. (2016). Big data analytics in Logistics and supply chain management: Certain investigations for research and applications. International Journal of Production Economics, 176, 98-110.
