A leading player in the auto industry, specializing in the manufacturing of auto spare parts wanted to compare and benchmark the auto industry’s compliance requirements, industry standards, structure, and processes to the external practices of the peers within the specific market segment. The automobile spare parts client was also looking at creating a prioritized list of improvement opportunities to justify their budgetary decisions.
To do so, and to identify the industry best practices, the client approached SpendEdge to develop an all-inclusive approach that would help them develop an appropriate benchmarking model. A detailed quantitative analysis of various supply chain categories was carried out to identify the industry best practices.
About the Client:
The client is a leading player in the auto industry, specializing in the automobile spare parts segment.
The automobile spare parts manufacturer was facing several challenges in creating a prioritized list of improvement opportunities to identify the timeline for integrating the improvements, which, in turn, posed several problems in justifying their overall budgetary decisions.
How did SpendEdge Help the Client?
- Step 1: Identification of the key structure, performance, and effectiveness metrics in the automobile spare parts segment
The initial few stages revolved around the identification of key industry standards, performance metrics, and effectiveness metrics. As the objective was to devise a suitable industry best practices benchmarking model, the collected data was analyzed to identify the benchmarks to be followed.
- Step 2: Selecting the target organizations of the desired size to benchmark
After the completion of the data collection and analyzation phase of the benchmarking process, it is essential to identify and refine the peer companies to summarize the findings and opportunities based on the collected data.
- Step 3: Analysis of gathered data to identify opportunities for improvement, based on the client’s organizational goals
To devise an effective industry best practices benchmarking model, it is essential to analyze the gathered data to identify opportunities for improvements. This, in turn, helped the automobile spare parts manufacturer to ensure that the developed benchmarks align with the improvement recommendations.
Key questions answered in this industry best practices engagement include
Benefits of the Engagement:
The industry best practices experts at SpendEdge recommended the best benchmarking model to helps the client justify their budgetary decisions. The developed model enabled the automobile spare parts manufacturer to effectively compare the industry standards with that of their peers and devise a robust benchmarking strategy.
Why incorporate industry best practices?
Benchmarking the industry best practices deals with the process of comparing your organization’s compliance factors, structure, and processes to the external practices of your peers and the industry in general. It can be defined as the process of making a judgment about the status or effectiveness of your compliance program, which will typically include an analysis of the industry benchmarks. Therefore, the process of industry best practices benchmarking is a subset of an industry compliance program, which helps an organization to ensure that they meet the industry requirements and framework standards for effectiveness.
The auto industry is experiencing rapid digital transformations, where cutting-edge benchmarking models are introduced to the market on a regular basis. Although the auto industry is currently experiencing accelerated growth, the automobile spare parts manufacturing segment is expected to witness a continuous challenge owing to the adoption of innovative technologies to excel in the market.
Therefore, devising an effective industry best practices benchmarking model can help them stay abreast of the industry best practices and evaluate the benchmarks periodically. This can further enhance category growth across the supply network by analyzing peer group data to identify and implement organizational improvements.