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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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As we said at the outset
typical ROI in an AdvancePro run business begins in under
three months. After that the savings accrue month after month. And
you get your cash working for you instead of just sitting around
in your inventory. If you’d like to see how soon you’d be making
money by better managing your inventory you can download your
version here. |
AdvancePro Payback |
Savings |
Month 1 |
Month 2 |
Month 3 |
Month 4 |
Month 5 |
Month 6 |
Total |
Shipping Error Reduction Savings |
$357 |
$375 |
$394 |
$414 |
$434 |
$456 |
$2,430 |
Inventory Reduction in Safety Stock |
$2,000 |
$2,000 |
$2,000 |
$2,000 |
$2,000 |
$2,000 |
$12,000 |
Inventory Write-Offs Reduction |
$750 |
$750 |
$750 |
$750 |
$750 |
$750 |
$4,500 |
Labor Savings |
$1,429 |
$2,887 |
$2,916 |
$2,945 |
$2,974 |
$3,004 |
$16,155 |
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Total Estimated Savings |
$4,536 |
$6,012 |
$6,060 |
$6,108 |
$6,159 |
$6,210 |
$35,085 |
Cost or Residual Cost of WMS |
$8,200 |
$3,664 |
$0 |
$0 |
$0 |
$0 |
$8,200 |
Net Savings |
-$3,664 |
$2,348 |
$8,408 |
$14,516 |
$20,675 |
$26,885 |
$26,885 |
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