What is Inter-Industry benchmarking?

What is Inter-Industry benchmarking?

• A. Comparison against the best elsewhere in the Industry
• B. Comparison against the best elsewhere in the Organisation
• C. Comparison against the best functional area in any industry
• D. A computerised system that incorporates a single database used by many different areas of the organisation. Enables optimal inventory control based on matching of supply and demand

Answer: (C)

Inter-industry benchmarking means looking beyond your own sector to learn from the top practices in a similar function carried out in other industries, and then adapting those ideas. The best match among the options is the one that describes comparing against the best functional area in any industry, because it captures the idea of transferring superior practices from anywhere, not just within your own industry. The other descriptions refer to benchmarking within the same industry, internal to the organization, or describe a system rather than a benchmarking approach. For example, a manufacturer might study how a retailer manages its inventory replenishment to identify ideas that could improve its own stock control.

Inter-industry benchmarking means looking beyond your own sector to learn from the top practices in a similar function carried out in other industries, and then adapting those ideas. The best match among the options is the one that describes comparing against the best functional area in any industry, because it captures the idea of transferring superior practices from anywhere, not just within your own industry. The other descriptions refer to benchmarking within the same industry, internal to the organization, or describe a system rather than a benchmarking approach. For example, a manufacturer might study how a retailer manages its inventory replenishment to identify ideas that could improve its own stock control.