Course: Benchmarking

Benchmarking skills include both data collection and synthesis techniques.


Course Outline:

  1. Define Best-in-Class Performance
  2. Analyze Cost at the Component Level
  3. Normalize Data for Benchmarking
  4. Present Benchmark Data Effectively

Exercise Example:

  • Cost Breakdown Benchmarking:
    The class is given cost breakdown information for four items. Given the data, each team must identify the key cost drivers, compare their cost elements to best-in-class levels and present the information with price targets to the supplier.

Expectations Upon Completion:

  • Skills to identify key cost elements to benchmark
  • Knowledge to compare spend data by cost components
  • Capability to determine pricing gaps based on spend data
  • Ability to present target prices to suppliers
Commodity Strategy Workshops | Financial Acumen