What is the example of Xerox benchmarking its distribution system against that of L. L. Bean categorized as?
The Xerox's comparison of its distribution system to that of L. L. Bean falls under functional benchmarking.
Understanding Functional Benchmarking
Functional benchmarking involves comparing specific functions within different industries to find innovative ways to improve. In the case of Xerox comparing its distribution system to that of L. L. Bean, it means that Xerox is analyzing and learning from the distribution practices of a company in a different industry.
Benefits of Functional Benchmarking
Functional benchmarking allows companies to gain insights and ideas from diverse industries that they may not have considered before. By looking outside of their own industry, companies like Xerox can discover new approaches and best practices that can be applied to their own operations, leading to increased efficiency and effectiveness.
Comparison with Other Benchmarking Types
It's important to distinguish functional benchmarking from other types of benchmarking. Competitive benchmarking involves comparing with direct competitors within the same industry, while internal benchmarking compares processes within different divisions of the same company. Disaggregate benchmarking breaks down services or products into components for individual benchmarking.
In conclusion, functional benchmarking offers valuable opportunities for companies to learn from different industries and implement innovative improvements in their own operations, as seen in the example of Xerox benchmarking against L. L. Bean.