Benchmarking and Best Practices in

1
Benchmarking and Best Practices in The Malaysian
Retail Industry
Sharing Spirit
Benchmarking
Best Practices

• factors that can impact profitability
• the need to collaborate more and make more
  fact-based decisions though benchmarking
• Key to success is customer-supplier
  collaboration and real-time information
• Majority of successful companies are already
  sharing some information with their customers

• need to understand on how the collaboration and
  info sharing can contribute to profitability,
  cost competitiveness, efficiency and customer
  satisfaction

2
Benchmarking and Best Practices in The Malaysian
Retail Industry (contd)
Benchmark
3
Benchmarking and Best Practices in The Malaysian
Retail Industry (contd)

• Emphasis on Membership Card Privileges benefits
  to
• enhance relationship with loyal customers
• Frequently review, innovate and improve own
  retail concept
• Respond promptly towards changing consumer
  spending behaviour
• Most products new fast moving products
• Good relationship with suppliers
• Aggressive promotional activities
• Customers payment capabilities
• Outlets to be more functional in relation to its
  customers
• logistical requirements
• Outlets to be more aesthetically pleasing and
  attractive as shopping destination

Best Practices
4
Benchmarking and Best Practices in The Malaysian
Retail Industry (contd)

• Creating a culture to make your staff happy
• Good employee benefits package
• Motivate staff, ensure employees emotional,
  intellectual physical well-being
• Contractual bonus
• Productivity Incentive program
• Work/life balance (provides sports recreational
  facilities)
• Service award program
• Group health plan cover
• Punctuality incentive, full attendance allowance
• Structured skills career and development programs

Best Practices
5
Retail Resurgence
Quote Star , 4 Oct 2003

• Initial retail growth 5 but due to SARS outbreak
  and the Iraq War, drop in April-May to 2-3
• Increased customer spending due to
• Mega sales promotion help boost sales
• Bonuses to government servants
• Improved income and employment
• MIER projected private consumption to grow from
  4.4 to 5-7 next year

6
How can industry integrate and share their
experiences and best practices?
7
Benchmarking for Best Practices
Benchmarking is the practice of being humble
enough to admit that someone else is better at
something, and being wise enough to learn how to
match and even surpass them at it.
Benchmarking is a systematic and continuous
process of searching, learning, adapting and
implementing the best practices from within own
organization or from other organizations towards
attaining superior performance
- National
Productivity Corporation, Malaysia
8
Types of Benchmarking
Benchmarking
Internal Benchmarking
External Benchmarking
Market related (Competition analysis)
Plant related
Generic Processes (Best Practice)
Branch related (Trend research)
e.g., safety performance measures
9
3 Basic Issues in Benchmarking
Basic issues Where are you now? Why is your
organization at this position vs the other? What
can be improved?
112
Where?
90
Waiting Time for Admission minutes
30
Why?
10
What?
Company
max
min
mean
10
Benchmarking An Overview
Competitive Benchmark
11
What Is Benchmark?
A measured best-in-class achievement,
recognized as the standard of excellence for a
particular process Examples

• Rate of customer complaint 5
• Employee satisfaction rate 95
• Customer retention rate 90
• Information retrieval time 5 seconds
• Customer response time 15 min.
• Medical Cost per Employee RM16.89
• MC Rate 0.5

12
What Are Best Practices ?
Best practices are a relative term indicating
outstanding business practices which have been
identified as contributing to significant
improved performances in leading companies

• Examples
• Development of in-house trainers and training
  academy
• Visual management to inculcate culture of
  excellence
• QCC in building knowledge-based workforce

13
Importance of Benchmarking
14
Benefits of Benchmarking

• Improves organizational quality
• Leads to lower cost
• Creates buy-in for change
• Exposes employees to new ideas
• Broadens organizations perspective
• A catalyst for learning
• Increase employee satisfaction
• Test the internal operating target
• Raise the level of potential performance
• Sharing of best practices
• Understanding world-class performance in-depth
• Encourage and stimulate innovation

15
NPC Benchmarking Model
16
Community of Practice (CoP)
CoP is a small group of people who comes together
to explore opportunities for benchmarks and best
practices sharing on common interest areas
17
Benchmarking Community of Practices (CoP)
18
Communities of Practices (CoP)
Manufacturing Textile Apparel Plastic
Injection Plastic Packaging Palm Oil
Refineries Electrical Mfg Services Automotive
Vendors
SMIs Enterprise50 Headstart500
Productivity Quality Improvement ASEAN
SMIs
Process HRM Cycle time Counter Service Call
Centre TQM Productivity
Construction Klang Valley Johor Baharu
Utility Power Producers Energy Users
Public Sector Local Authorities Project
Development Management Counter Service
Excellence Organization
Services Hotels Hospitals Ports Banks
Retail