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"Our ROI has steadily increased, I think the key for us in
realizing a good ROI was that our expectations were realistic,
we knew that it would not happen in 24 hours, but after a couple
of months we knew AdvancePro was saving us money."
Steven Arrow,
Software Connection USA. |
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Realistic ROI
Forecasts
It’s always easier to buy something when you are
confident you’ll benefit from that purchase. And when you can see a
return on your investment in months instead of years its even
easier. Trouble is forecasting of ROI with any degree of accuracy is
difficult. It requires a complex set of calculations that cover
virtually every facet of your business. To help we’ve created a high
end tool for calculating ROI that makes it relatively simple too see
what effect purchasing AdvancePro will have on your bottom
line.
True ROI in Less
Than 3 Months
The sample we’ve provided below uses data that is typical
for a business running AdvancePro and covers a period of six
months. There was no need to go beyond this period since payback
usually begins in less than three months.
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Inventory
management is more than just knowing what you have in stock and
what you don’t. Software like AdvancePro makes information
faster to collect and easier to view. More importantly though it
gives you the tools you need to significantly reduce capital tied
up in inventory. |
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INVENTORY |
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Inventory Reduction |
Month 1 |
Month2 |
Month 3 |
Month 4 |
Month 5 |
Month 6 |
Total |
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Opening Inventory Value before AdvancePro |
$20,000 |
$20,000 |
$20,000 |
$20,000 |
$20,000 |
$20,000 |
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Expected Monthly Sales Variance |
0% |
0% |
0% |
0% |
0% |
0% |
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Expected Reduction In Inventory |
10% |
10% |
10% |
10% |
10% |
10% |
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Inventory Value w AdvancePro |
$18,000 |
$18,000 |
$18,000 |
$18,000 |
$18,000 |
$18,000 |
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Inventory Reduction Savings (Safety Stock) |
$2,000 |
$2,000 |
$2,000 |
$2,000 |
$2,000 |
$2,000 |
$12,000 |
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Savings In Write Offs |
Month 1 |
Month2 |
Month 3 |
Month 4 |
Month 5 |
Month 6 |
Total |
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Monthly Inventory Write Off |
$1,000 |
$1,000 |
$1,000 |
$1,000 |
$1,000 |
$1,000 |
$6,000 |
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Expected Monthly Sales Variance |
0% |
0% |
0% |
0% |
0% |
0% |
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Inventory Write Off Reduction after AdvancePro |
75% |
75% |
75% |
75% |
75% |
75% |
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Annual Inventory Write Off with AdvancePro |
$250 |
$250 |
$250 |
$250 |
$250 |
$250 |
$1,500 |
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Inventory Write Offs Cost Savings |
$750 |
$750 |
$750 |
$750 |
$750 |
$750 |
$4,500 |
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* Additionally,
warehouse space requirements can be better controlled. |
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