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How to Measure Yourself Against the Best
The Logistics and Distribution unit of Xerox's Business Systems Group was gaining 3% to 5% a year in productivity - not good enough in light of industrywide price cuts in business machines. One solution, benchmarking, measures L&D's warehouse and distribution performance against comparable activities in other industries. After a search, L&D found the best warehousing and materials handling organization was at L.L. Bean. By looking closely at the operation of Bean and other noncompetitors, L&D has raised its productivity 10% each year and gained a better position against its real competition.