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Dorsma is a global company that provides door security and access solutions. It has many factories spanning across the globe and has resulted in individual factories adopting their own system of measurement and evaluation.
Ralf, the senior vice president of group purchasing, has been tasked by the management team of Dorsma to develop a common and effective performance management framwork to attain some coherent measurements on purchasing performance across all plants.
(a) Discuss the general sequence of activities that can assist Ralf to formalise a measurement and evaluation system. What do you think are the key ingredients for the development of an effective measurement and evaluation system?
(b) Propose three (3) types of performance benchmarking that would be relevant to Dorsma as it establishes the above measurement and evaluation system on purchasing performance. Support your answer with reasons as to why such benchmarking is relevant to Dorsma’s business.
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