Benchmarking in purchasing achieves an increase in profit for a transportation company

Following a recent downsize by one-third, a major Canadian transportation company operating throughout North America launched a major initiative to save on purchasing costs. In order to do this it formed taskforce teams, each target based upon benchmark data. By the end of the first phase of this process, six projects had been implemented in its purchasing division and average savings amounted to 8.2%, this was attributed to best practice implementation and peer pressure....

BPIR Categories

14.2.2 Benchmark performance measures with noncompetitors
6.2.4 Purchase materials & supplies