Title: Improving efficiency through internal benchmarking
Author: Sebastian M. Durst, Mario Binder
Address: Competence Center Operations Strategy, Roland Berger Strategy Consultants, Loffelstr. 44, 70597 Stuttgart, Germany. ' Operations and Information Management Group, Aston Business School, Aston University, Birmingham B4 7ET, UK
Journal: Int. J. of Business Performance Management, 2006 Vol.8, No.4, pp.290 - 306
Abstract: This paper gives an account of a real in-depth case study showing the successful application of internal benchmarking to a complex industrial environment. It focuses on improving the efficiency of the 'Distribution Logistics' process of a multinational cable manufacturer spanning three production sites in three European countries. Challenges addressed in this paper are how internal benchmarking was applied as a structured and systematic approach for improving a business process based on its productivity and its cost. Special attention is paid to the development of an inclusive and a consistent efficiency measurement system for the 'Distribution Logistics' process of the company. In the end, challenges and success factors for applying benchmarking projects to a complex business environment are presented by the authors to guide the potential 'benchmarker'.
Keywords: internal benchmarking; efficiency measurement system; performance metrics; distribution logistics; case study; multinational corporation; cable manufacturing; business process improvement; cost; productivity; success factors; Germany; Poland; Hungary.