

The goal is to have an improvement in Fill Rates from the manufacturer. Also, a decrease in stock outs and a
decrease in inventory levels.
Planning and ordering cost will decrease due to the responsibility being shifted to the Manufacturer.
The overall service level is improved by having the right color and right size at the right time which increases the
gross margin and reduce the mark down price
Promotions can be more easily incorporated into the inventory plan.
Visibility to Stock Levels helps to identify priorities (replenishing for stock or a stock out).