Benchmarking in purchasing

Every penny saved in purchasing can translate into dollars of increased profit. One way of leveraging this effect is to apply benchmarking principles to the purchasing practices. A large Canadian manufacturer of food and beverage cans, with several factories in Canada, was threatened by free trade (NAFTA , the North American Free Trade Agreement became effective in 1994). It targeted its purchasing costs and saved $21 million within a brief time frame. The success was achieved by a multidiscipli...

BPIR Categories

14.2.3 Benchmark performance measures against competitors
5.2.4 Purchase materials & supplies