A global logistics network compares the efficiency of its HR department's payroll processing against the payroll processing efficiency of a leading multinational bank.

What type of benchmarking is this?

Functional benchmarking involves comparing a specific business function or process (e.g., payroll, customer service, IT support) against organizations that are recognized as the best at that function, even if they are in completely different industries. Because a logistics firm is comparing itself to a bank, it is functional, not competitive.