Benchmarking for Best Practice

7    Benchmarking supplierpartnerships for best practice

One of the most fruitful sources of ruin to men of the world is the recklessness or want of principle of partners, and it is one of the perils to which every man exposes himself who enters into partnership with another.

Sir R. Malins VC (1805–1882)

7.1 Introduction

Manufacturing industry spends on average 55 per cent of its turnover on purchasing goods and services. Such is the impact of that spending that a 1 per cent cut can increase company profits by the equivalent of an extra 10 per cent of sales. According to attitude surveys conducted each year by Benchmark Research, cost control is the most pressing issue for one out of three manufacturing companies. Trimming purchasing costs, ...