5 Terrible Benchmarking Mistakes That Distributors Must Avoid
Benchmarking analysis is a powerful tool for distributors to understand and improve their performance. One of the key benefits of benchmarking is that, if done in the right manner, it can enable businesses to learn from each other and make smarter decisions. Comparing the organization’s performance to other distributors in the market will help learn from their successes and mistakes. Furthermore, this also helps distributors adopt industry best practices into their distribution strategy. However, mistakes in benchmarking could have adverse effects on the company’s distribution strategy. Here are some of the common benchmarking mistakes that distributors must stay clear of:
Lack of focus
The scope of a benchmarking analysis should be tied to what the company is trying to accomplish in their distribution strategy. Without focus, distributors often fail to benchmark to their situation. The organization’s culture and/or circumstances might be different from that of the benchmark organization. Hence it is important to have a clear focus on the parameters that need to be benchmarked against and used for measuring the performance.