Benchmarking Is Used to Gain Perspective on Current Organizational Performance

question 191

True/False

Benchmarking is used to gain perspective on current organizational performance by using external comparisons.

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Definitions:

Tailored Sourcing

The practice of customizing the procurement process to fit the specific needs and requirements of a business.

Improve Profitability

Involves strategies and actions aimed at increasing the net income relative to revenue, effectively enhancing the financial performance of a business.

Profitability

A measure of the efficiency of a company in generating profits from its operations, calculated as the ratio of net income to revenue.

Sourcing

The process involved in finding, evaluating, and engaging suppliers of goods and services.