What do you mean by Benchmarking?

Benchmarking means investigating, comparing, and evaluating a company’s products, processes, and/or services against either those of competitors or companies believed to be the “best in class.” Such comparisons allow a company to understand another’s production and performance methods, so that the interested company can identify its strengths and weaknesses. Because each company has its own unique philosophy, products, and people, “copying” is neither appropriate nor feasible.

Therefore, a company should attempt to imitate those ideas that are readily transferable but, more importantly, to upgrade its own effectiveness and efficiency by improving on methods used by others. There are codes of conduct that have been established for benchmarking activities. These codes address issues such as equal exchange of information, restricted use of learned data, avoidance of antitrust issues and illegalities, and interorganizational courtesy.