Secondly, benchmarking is being used more frequently as a tool for contract negotiations. Clearly we view this as a double-edged sword. The important thing to remember in this context is that both parties must use the information honestly and cooperatively. The implication is that the supplier and outsourcer should approach their relationship with the goal of a win-win scenario. Using benchmarking data to extract concessions from the supplier generally serves only to alienate the parties.
Care is essential in selecting what is measured and with whom comparisons are made.
Each party has its own interests as the top priority. That's commonly reflected by the customer's desire to seek performance in the top 10 percent, while suppliers see performance in the top 25 percent as appropriate.