Role of benchmarking in cost optimization of manufacturing enterprises

Abstract

The growth of competitive pressure and the complexity of production processes make it necessary to improve the efficiency of production enterprises' cost management systems. One of the most effective tools in this direction is benchmarking, which compares key performance indicators with best-in-class industry practices and provides a methodological basis for identifying business process optimization opportunities. The article examines the theoretical and applied aspects of using benchmarking as a tool for strategic management of production processes. The purpose of the studyis to substantiate the role of benchmarking in optimizing manufacturing enterprise costs by improving cost management systems and decision-making mechanisms through a systematic comparative analysis. Methods. The work uses a combination of methods of structural and logical generalization, economic analysis, comparative assessment and diagnostic elements of production activity. Results. It has been proven that the use of benchmarking contributes to the formation of a transparent system of cost control, increases enterprises' ability to detect hidden inefficiencies, optimize resource provision parameters, and modernize technological operations. Systematic comparison of performance indicators with reference values ensures rationalization of internal business processes and a more balanced balance of production costs. Particular attention is paid to the coordination of benchmarking indicators with the enterprise's general cost management system, ensuring their integration into the enterprise's strategic and operational decisions. Conclusions. The use of benchmarking as a cost optimization tool is a significant factor in strengthening the competitiveness of manufacturing enterprises. The proposed toolkit increases cost management efficiency, streamlines operational processes, and lays the foundation for strengthening enterprises’ long-term economic sustainability. The obtained results can be used to develop a strategy for continuous improvement and management optimization across enterprises in various industries.