The Relationship Between Benchmarking and Supply Chain Performance: a Case of Total Kenya Limited.

Abstract

The main purpose of this study was to examine the relationship between benchmarking and supply chain performance at Total Kenya limited. The other objectives were to establish the challenges of performance benchmarking, level of performance benchmarking and the benefits of performance measurement and benchmarking. The study adopted a case study of Total Kenya limited and the respondents were drawn from the supply chain departments of planning and supply, operations and customer service. The study established that the company highly benchmarked its supply chain performance measures in all the main areas of the supply chain. The top most benchmarked measures in order are compliance to safety requirements, supplier performance towards environment and safety, on time delivery with no damage, order fulfillment cycle time and maximum allowable defects. Price and cost measures were the least benchmarked in the company. The study established a significantly high positive relationship between benchmarking and supply chain performance. All the measures studied indicated positive correlation of benchmarking with supply chain performance .Challenges were however identified which could hinder the success of this benchmarking and supply chain performance measurement, biggest was lack of management support.