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ACCA Strategic Professional · Advanced Performance Management · Performance improvement models and techniques

Kestrel Logistics wants to improve its warehouse order-picking process. The board decides to study the order-picking methods of an online fashion retailer in a different industry that is widely recognised as the world leader in fast, accurate picking. A key advantage of choosing this partner over a direct competitor is that:

The main advantage is that a non-competing partner is more willing to share information and may use innovative practices not seen in Kestrel's own industry. Data comparability is not perfect, practices still need adapting to local conditions, and results are never guaranteed.

  1. ACost and performance data are easier to obtain and are directly comparable in every detail
  2. BThe partner is likely to be willing to share information because it is not a competitor, and may reveal practices unknown in Kestrel's own industryCorrect
  3. CThe exercise removes the need to adapt the practices to Kestrel's own systems and culture
  4. DIt guarantees that Kestrel will be able to match the partner's performance quickly

Explanation

Functional benchmarking against a non-competitor in another industry makes information sharing more likely and can expose innovative practices. Data are not necessarily directly comparable, so option A is wrong. Practices still need adapting, and no outcome is guaranteed.

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