exploring competitive benchmarking in procurement without hampering innovation - any tips?

[AlexandraSmith93]

Has anyone here explored competitive benchmarking in the procurement process?

I'm curious about the best way to gauge where we stand against industry leaders in our market.

It seems like a solid approach to ensure we're staying on par with—or surpassing—competitor standards.

But what's the most effective method to get this comparative data without inadvertently stifling our internal innovation efforts?

Any thoughts or experiences would be greatly appreciated!

[ProcurementForumAdmin]

Hello,

Competitive benchmarking in procurement is indeed a powerful tool to gauge your position relative to industry leaders. It's essential to balance the drive for competitiveness with nurturing innovation within your organization.

The most effective method to ensure this balance is to comprehensively define relevant KPIs that align with both your competitive and innovative goals. Approach benchmarking as a learning opportunity rather than a pure comparison exercise. This mindset encourages the incorporation of best practices while simultaneously seeking new, unique ways to excel.

Investing in cutting-edge procurement technology enables smart benchmarking without stifling innovation. Such tools provide accurate, real-time data which is crucial in making informed decisions and exploring areas for innovation.

As for comparative data, consider using a blend of internal and external benchmarking to obtain a holistic view of your procurement function's performance. While external benchmarking provides insights into where you stand against competitors, internal benchmarking encourages sharing and adopting innovative practices within your organization.

Remember, the goal isn't merely to replicate what others are doing but to find areas where you can lead. Inspiration, not imitation, is key when benchmarking with innovation in mind.

For a detailed look into procurement benchmarking, including KPIs, best practices and how to leverage the insights, I suggest reading a really good, comprehensive article here: https://procurementtactics.com/procureme...chmarking/

Best,
Tom Admin