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Manychip must use an comprehensive ERP package to improve the productivity, efficiency and accuracy in its organization. A specific manufacturing or production planning utility is not as useful as a complete ERP package due to many reasons. An ERP or enterprise resource planning packagae provides significant advantages to fast growing manufacturing companies like Manychip in the following ways:
Advantages of ERP
Faster inventory turnover: Without ERP, a business may turn over its inventory once or twice a year With ERP to automate processes such as production planning and procurement, many manufacturers and distributors increase inventory turns by tenfold and reduce inventory costs by 10% to 40%. 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.
Better inventory accuracy, fewer audits: Some manufacturers physically count inventory each month-in some cases, each weekend often have an inventory accuracy rate as low as 20%. An ERP system can increase inventory accuracy to more than 90%, while reducing the need for frequent physical ...