Abstract
All successful business enterprises are committed to or stress quality service in product manufacturing and distribution. Insistence on quality, efficient firm management, and a compelling need to satisfy customers’ demands has led to new methods of addressing the same. Logistic management is one area calling for benchmarking. Benchmarking ensures that a firm remains unique thus encouraging efficiency and effectiveness.
By using Wal-Mart as an example, this research paper assesses the role of benchmarking in evaluating the performance of logistics roles. Besides, the paper describes how Wal-Mart can achieve strengthened results by incorporating greater use of benchmarking and performance metrics in its business operations.
Benchmarking and Evaluation of Logistics Roles at Wall-Mart
Benchmarking is a business management technique supporting managers in evaluating business performance against similar firms. The comparison is not linked to competitors alone but similar business entities as well (Branch, 2008). Wal-Mart is one of the leading firms embracing the practice of benchmarking in its logistical operations.
Benchmarking in Logistics has smoothened roles, aligned supply chain management, and simplified the flow of operation within the firm. This has made Wal-Mart unique to its competitors by offering low prices on their products (Branch, 2008). In addition, benchmarking has helped Walmart to profile and strengthen its existing competitiveness. Walmart can constantly re-evaluate itself; model the activities of its competitors especially the activities geared towards value and profit by embracing the SWOT analysis (Branch, 2008). Further, benchmarking has helped Walmart to determine its internal capacity to build a wall against existing competitors.
Strengthening organizations power by Embracing Benchmarking and Performance Metrics
Benchmarking and performance metrics have an impact on a firm that recognizes its importance. Wal-Mart will competitively position itself by adhering to supplier evaluation and selection criteria (Stadtler, 2008). This can be done by ensuring its existing suppliers meet the stringent requirements needed. Such essential requirements include elements such as competency, availability, dependability, and consistency. Besides, benchmarking will help in aligning Wall-Mart’s strategic planning towards timely product delivery at a low cost (Branch, 2008). Performance metrics and benchmarking will help Wall-Mart in reducing shipment time and associated costs.
Forecasting is a salient characteristic of any business. By incorporating benchmarking and performance metrics, Wal-Mart will be able to forecast its competitors. Therefore, this will mitigate competitors’ threats because of the already fixed solutions and ensure a consistent niche is recognized against existing and emerging competitors (Schneider, 2008). Wal-Mart will be able to analyze the SWOT analysis and fix the strengths, weaknesses, opportunities, and threats to defend itself against its competitors (Stadtler, 2008).
Wal-Mart will also increase its operations by embracing the scorecards in Its Logistical Scorecards. This will ensure strategic alignment to its operations such as reduced time wasted in delivery systems, encouraging strategic decision-making, and adding value to the firm.
Conclusion
Wal-Mart has embraced Benchmarking in logistics management by ensuring that all its service levels are of quality standards. Quality is established through comparing competitor standards and other internationally trending standards. This has reduced product cycle times, increased greater customer satisfaction, product availability, and countered competitors’ threats. Besides, benchmarking has helped Wal-Mart to influence its suppliers to ensure that their products are available on time (Schneider, 2008). By ensuring that the products are available on time, Wal-Mart has increased its customer’s commitment thus promoting its brands. This has earned Wal-Mart a positive image in the market. The Just-in-time (JIT) system works for Wal-Mart due to benchmarking techniques and practices.
Reference List
Branch, A. E. (2008).Global Supply Chain Management and International Logistics. London: Taylor & Francis.
Schneider, G. (2008).Electronic Commerce.New York: Cengage Learning.
Stadtler, H. (2008).Supply Chain Management and Advanced Planning: Concepts, Models, Software, and Case Studies. Michigan: Springer.