The relevance of benchmarking in the steel industry has been a topic of debate for several years. Many players in the industry were initially of the opinion that benchmarking may not be effective in the steel industry as there is limited transparency in the industry regarding what is achievable and how results can be replicated. However, over the years, stakeholders in the steel industry have realized that to achieve operational efficiency and cost-effectiveness, industry benchmarking is essential. So, what are the challenges faced in the steel industry, and how can steel companies effectively use benchmarking to their advantage in this lucrative industry? Let us examine:
Here are some of the key challenges that the players in the steel industry have to face with respect to adopting benchmarking practices:
- Less amount of transparency among steel producers in the industry is making it difficult for companies to establish proper benchmarks
- Conducting an effective benchmarking based on similar parameters without mixing up structural and performance differences
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