A Study on Benchmarking Technique Understanding and Knowledge in Malaysia Palm Oil Milling Industry

Benchmarking is a tool that can lead to broad improvements to an organization. It has been implemented in various industries such as manufacturing and services. The objective of this study is to identify the level of understanding and knowledge on benchmarking in palm oil milling industry. A survey instrument, tested for reliability and validity by experts and practitioner was developed to collect data from respondents involved the palm oil milling industry. Later, the survey questionnaire which comprise of two sections was distributed through postal mail and email to 230 respondents in different palm oil milling industry. Seventy four survey questionnaires were completed and returned, giving a response rate of 32.2%. Analysis of survey results shows that 18.9% of respondents are in good category, 71.6% are still in moderate category and 9.5% in low category. Thus, it can be concluded that 81.1% of survey respondents in palm oil milling industry is still lacking of knowledge and understanding in benchmarking concept. Further guidance, support and awareness are really needed to encourage more organisations in palm oil industry to use benchmarking in order to survive and remain competitive.