When benchmarking is not performed and a major in any industry ignores the competition levels there are chances that it would tend to fall behind in its own development and leadership qualities. It is also not the same with regard to establishing benchmarks which involve the setting up of acceptable levels of standards, so that the product or service can move forward to the next immediate step and not be rejected automatically as a result of quality control. .

             Benchmarks are defined in terms of how many units are to be produced in one unit of time, how quickly the product line can transfer itself into manufacturing another product, how high the production levels can be from one shift, or what the minimum levels of production are which are being acceptable. The similarity of benchmarking and benchmarks is in that benchmarking tries to find out and understand the direct reasons for the production to be high in certain relevant situations and not be so high in other situations/conditions. Once the reasons are being determined then the same methods can be expanded for use in other parts of the complete production process so that the total production level can be at higher levels and correspondingly the profits of the organization as well. This is the real benefit that can be obtained from the practice of benchmarking. (Defining Benchmarking) .

             Looking at the acts of benchmarking in benefiting the organization, one can see some direct benefits. It prevents reinventing the wheel and what is meant by that is that since the process or machinery or item has already been invented, anybody else trying to reinvent the same is only wasting money. The second method in which it provides benefits is through using tested and proven practices that have already been used successfully by others, it convinces people who do not take kindly to fresh ideas by demonstrating to them that it works, and it forces the organization to move at a rapid pace as it knows that competitors are already using the method.