Procurement Benchmarking

Procurement benchmarking is the practice of measuring an organization’s sourcing and procurement performance against external peers, including industry leaders and best-in-class companies. It covers key metrics such as cost savings, supplier performance, cycle times, contract compliance and technology adoption. The process involves collecting quantitative data, conducting qualitative assessments (e.g., stakeholder surveys), and applying proven methodologies to identify performance gaps and root causes. Insights from benchmarking enable organizations to prioritize improvement initiatives, adopt best practices and set realistic targets. By tracking progress over time, procurement benchmarking drives continuous enhancement of efficiency, risk management and strategic value across the supply chain.