Cost benchmarking is the measurement, refinement and analysis of ones Cost of Goods Sold (COGS) when compared to market peers. Cost benchmarking identifies competitiveness of pricing in industry terms, highlighting best in class[1] pricing and subsequently showing areas for competitive pricing improvement. Cost benchmarking is a valuable tool for Supply Chain Managers when creating a negotiation strategy to drive down overall COGS. The objectives of benchmarking are to determine what and where improvements are called for, to analyze how other organizations achieve their high performance levels, and to use this information to improve performance.[2]
Cost benchmarking is a growing factor in Cost Analysis,[3] where there is a systematic breakdown of existing cost data to allow for closer examination. However, Procurement Professionals often face immense difficulty in identifying their market peers' pricing due to the confidentiality tied to competitive advantage.[4]
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^"How has this term impacted your life?". BusinessDictionary.com. Archived from the original on 2017-03-18. Retrieved 2017-03-17.
^RICS Practice Standards, UK (2011). "Cost analysis and benchmarking" (PDF). RICS QS & Construction Standards. 1.
^"What Data is Important for Comparing Construction Projects?". home.benchit.app. Bench iT. Retrieved 12 November 2022.
Costbenchmarking is the measurement, refinement and analysis of ones Cost of Goods Sold (COGS) when compared to market peers. Costbenchmarking identifies...
compared to others. Also referred to as "best practice benchmarking" or "process benchmarking", this process is used in management in which organizations...
setting a benchmark that a new project has to meet. For an investment to be worthwhile, the expected return on capital has to be higher than the cost of capital...
transparency.[clarification needed] Costbenchmarking helps to identify competitive pricing within the industry but benchmarking across a range of supply chain...
cost information needed by managers working towards this goal. Product benchmarking Competitor benchmarking Design to cost Incorporation of "low-cost...
Freight Market Intelligence Consortium (FMIC), a subscription-based benchmarking and analysis service, from Chainalytics. Strauss, Robert (13 December...
marketing as a benchmarking metric to calculate the relative cost of an advertising campaign or an ad message in a given medium. The "cost per thousand...
WA Benchmarking http://green.dc.gov/page/private-building-benchmarking Archived 2013-03-14 at the Wayback Machine Washington, D.C. Benchmarking Energy...
typical accept/reject benchmarking settings for each indicator. There exist no standard set of accept/reject criteria for the benchmarking indicators, each...
that can be used for benchmarking smaller surveys. The benchmarking procedure begins by first breaking the population into benchmarking cells. Cells are formed...
Power Economics | Nuclear Energy Costs - World Nuclear Association". "Benchmarking Nuclear Plant Operating Costs". November 2009. "Nuclear Power Economic...
in April 2014. It is an online advertising costbenchmarking calculator that allows business to benchmark their hourly rates and fees for creative, media...
The following is a list of notable methods and benchmarking software tools. There are many benchmarking methods each having different analytical focus...
Benchmark Mineral Intelligence, also known as Benchmark, was founded by Simon Moores in 2014. Benchmark is the world’s foremost prices, data and intelligence...
consumption, and in some cases to analyse price convergence and to compare the cost of living between places. The calculation of the PPP, according to the OECD...
time Hypothetical scenario planning for new project ROI analysis Costbenchmarking against industry averages or common metrics Self-service portal for...
in time. Large and rapid increases in cost occurred during the 1970s, especially in the United States. Recent cost trends in countries such as Japan and...
term pertains to the average cost for each link click and it serves as a metric in online advertising for benchmarking online ad efficiency and performance...
introduction of a voluntary benchmarking system in 1999 substantial increases in efficiency and cost savings attributed to benchmarking. Source: WHO/UNICEF Joint...
performance across a range of situations. The aim of benchmarking is to answer this question. Benchmarking mainly consists in comparing the measured consumption...
diverse set of benchmarks. These comparisons allow costs to be split into several categories, including explicit cost, implicit cost, delay cost, and opportunity...
November 2021. "U.S. Solar Photovoltaic System and Energy Storage CostBenchmarks: Q1 2021" (PDF). National Renewable Energy Laboratory. U.S. Department...
prices. Among the commonly used methods are comparable uncontrolled prices, cost-plus, resale price or markup, and profitability based methods. Many systems...
"Intranet benchmarking explained". Intranet Benchmarking Forum. Archived from the original on 2011-07-13. Retrieved 2009-04-03. "Benchmarking intranet...
Benito; Locatelli, Giorgio (15 August 2022). "Policies toward net-zero: Benchmarking the economic competitiveness of nuclear against wind and solar energy"...
Gunter; Würmseher, Martin (2014-09-30). "Benchmarking of industrial park infrastructures in Germany". Benchmarking. 21 (6): 854–883. doi:10.1108/BIJ-01-2013-0015...
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