Increased customer response time, decreased contract costs and better inventory management are results experienced by companies that have integrated Vendor Managed Inventory (VMI) and Available-to-Promise (ATP) programs in their supply chain management process.
Research done by Chapel Hill, N.C.-based, Best Practices LLC, highlighted one company which saw a 50% decrease in contract costs using a VMI business model with an e-business infrastructure. That same company was able to increase its responsiveness to customer demand by 10%.
Another company enjoyed a 25% reduction in work-in-process inventory coupled with an 8% reduction in changeovers due to its ATP program. Additionally the company experienced significant improvement in customer service.
To view a summary of the report that includes information on delivery performance, supply chain cycle time and cost management visit: http://www3.best-in-class.com/rr650.htm
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