Return on Investment (ROI)
What kind of return can you expect for the money you’ve invested in your new supply chain systems?
We calculate that you can:
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Reduce labor costs by 20-30%
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Reduce or eliminate costs due to errors
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Reduce inventory costs due to inaccuracy
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Reduce overall inventory requirements
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Increase space utilization
But don’t take our word for it. According to the Multichannel Merchant, a warehouse management system will generate these results:
Fewer errors
Your data-entry personnel produce one error every 300 keystrokes. With radio-frequency (RF) scanning of bar codes, that number plummets to one error every 3 million.
Reduced forklift travel time
System-directed picks and put-aways will reduce your forklift travel time by as much as 50%. Your put-away people spend at least an hour a day searching for locations. That hour will be all but eliminated. Picking accounts for 55% of your warehouse labor dollars. And 50% of the picking process consists of traveling to and from the locations.
Reduced operating expenses
You can expect to receive as much as a 35% reduction in your operating expenses.
Reduced inventory cost
The cost of carrying inventory is usually about 27% less in an automated environment.
Inventory accuracy
Inventory accuracy increases around 20%.
Shipment accuracy
Shipment accuracy improves around 5%.
No more inventories
After the system is implemented, you’ll have zero inventories to perform.
Deposco predicts you’ll earn your money back just six months after deployment.