What is Cost Benchmarking?

Cost benchmarking is a process used to measure an organization's expenditure on products or services against an established standard or with that of competitors. It helps identify potential areas of improvement and cost savings, enabling the organization to develop more competitive and efficient procurement strategies.

Organizations can leverage cost benchmarking by determining KPIs, identify the benchmarking partner, gather and analyse data that help with best practices to improve ranking and add value and innovation to the organization.