SAP AG is the 2009 recipient of the Frost & Sullivan Global Supply Chain Management Product Quality Leadership of the Year Award. SAP was cited for its commitment to superior product quality, for being a one-stop solution for the supply chain requirements of all types of businesses, and for a high degree of customer satisfaction - factors that enabled SAP to increase its SCM customer base by 8 percent from 2007 to 2008.
"With companies increasingly focusing on making their supply chain lean, SAP AG is found to reduce inventory levels effectively by 10 percent to 70 percent," notes Frost & Sullivan research analyst Archana Rajagopalan. "With a 30 percent increase in the forecasting accuracy observed by customers, SAP SCM is found to offer return on investment within six months of its implementation even as SAP SCM implementation has been observed to enable 99 percent inventory accuracy."
Since lower inventory levels directly translate to reduced overall logistics costs, "SAP enables improved cash flow for its clients [and] its solutions also support higher margins," Rajagopalan says.
The Frost & Sullivan Award for Product Quality Leadership of the Year is bestowed upon the company that has demonstrated superior quality control over its competitors in product manufacturing. Quality control is an essential element of satisfying customers, increasing repeat buying behavior, and assuring long-term market survival, the company says.
