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InventoryThe inventory management method recommended for Hampshire Company is JIT. It is complex and requires commitment, but overall it improves Hampshire Company perspectives as well as customers’ perspectives of Hampshire and improves the relationships between them and their suppliers. According to Inventory management techniques (n.d.), JIT requires a lot of time researching customer buying habits, seasonal demand, and location-based factors in order to better predicate customer demand. Once JIT is correctly and systemically executed it is highly efficient and able to give Hampshire a comparative edge, lower product costs and higher-quality umbrellas, against their competitors and increase their market share. BenchmarkingBenchmarking is the comparison of the company’s performance against the performance in the industry or its competitors to identify and learn from best practice (Shirley, 1996). Management uses benchmarks as standards known and as a performance measure to achieve competitiveness in the market place. Many companies use benchmarking to identify problem areas and making the necessary charges (Suttle, 2018).
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HAMPSHIRE COMPANY CASE STUDY 9AdvantageThere are many advantages to using benchmarking in terms of improving companies’ performance. Benchmarking can assist in identifying higher costs than its competitors’, which indicates that they need to shop around or negotiate prices with current suppliers. Benchmarkingmay help pin point the inefficient costs for management reviews. For example, high labor costs may be reduced by implementing more training to improve the quality of work and decrease or eliminated defects. Companies may also use benchmarking to improve product quality by have their engineers purchase leading competitor’s products to study and determine ways to improve the company’s own product (Suttle, 2018). When using benchmarking to improve a company’s overall functions, operations, and services, it will help them increase their sales and profits because customer will notice the company’s improvements in their products which will increasesin sales. ApproachesThere are four approaches to benchmarking (Types of Benchmarking, n.d.)1.Internal benchmarking - comparing similar business processes within the companya.To achieve the best internal business practices2.Competitive benchmarking – comparing the company’s performance, product, service, process, and method to its direct competitorsa.To better understand the competition as well as the company; combine forces against another common competitor3.Functional benchmarking – a comparison to similar or identical practices within similar functions outside the industrya.To identify practices that are superior in the functional areas in different industries4.Generic benchmarking – taking different unrelate business processes or functions that canbe practices in a similar way regardless of the industry a.
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