Benchmarking efficiencies and strategies for resale operations of a charity organization

Purpose – This paper aims to analyze and benchmark the operating efficiency of resale shops run by a charity organization and to suggest strategies for improved operations. Design/methodology/approach – Data envelopment analysis (DEA) was used to compare the operations of nine resale shops of a charity organization. Data include annual reports of the shops for two years. Findings – The relatively efficient shops are located in the affluent communities, the eastern parts of the city. Accordingly, location is a major contributor to operating efficiency. For resource utilization, charges related to buildings are mostly underutilized among expenses, especially ownership costs and rents. DEA was found to be a useful approach for benchmarking resale operations. Research limitations/implications – This study is subject to the limitations of DEA, which measures relative technical efficiencies of decision‐making units. Results will vary according to data and decision‐making units included in the model. Originality/value – The contributions of this study are found in the first attempt for benchmarking resale operations of a charity organization and in its strong practical application.