Benchmarking is considered an important element in procurement as it allows a company to understand where it stands in relation to a given preference point. It can help an organisation acknowledge the gaps that it needs to fill to achieve a certain goal. The right kind of data, coupled with the right indicators, can ensure that benchmarking yields results. Technology can enhance this process by reducing the time and effort invested and increasing accuracy. Real-time data, more indicators and a single system can help with better comparisons. But it can’t work alone and requires the right talent to operate it. The main challenges to benchmarking include the collection of data, especially data that is high quality and comparable, as definitions, data points, scope, and strategies can vary across industries. Another challenge is the incorporation of findings for the improvement of a business. This can only be combated by companies by being regular.

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