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The result is significant reduction in inventory expense, as well as associated transportation, storage and warehousing costs. This, in turn, leads to better cash flow.
Improved customer service: To remain competitive, manufacturers are looking to improve their customer-order fulfillment rates. In many cases, an ERP system can increase fill rates to 80% or 90% by providing the information that allows the company to have the right product in the right place at the right time. The result is higher customer satisfaction and retention. Although it's hard to put a price on lost business, customers will take their business elsewhere if the products they want are not available when they need them...
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