One of the key problems of the Serbian economy is the low level of competitiveness of enterprises in the global market. Application of benchmarking is one of the effective methods for raising the competitiveness and cost management business in the way done by the most successful. Benchmarking is a method by which management can, on the basis of acquisition parameters and solutions of companies which achieve top results, identify their own weaknesses and take steps to reach or exceed market standards. By reviewing and determining the effects and possibilities of their own functional area of purchasing, they make comparisons with the best in some of the same or similar activities. They tend to use more effectively the achieved knowledge in their own purchasing practices. Unexpectedly high purchasing performance is often achieved, resulting in a multiplied effect on the positive business performance of companies and raising competitiveness. Companies must consistently use this efficient and simple method to achieve top results if they want to survive and succeed in the very challenging competitive markets.