When has the investment paid for itself?
Economics is an important factor that decides if a WMS-project is a solution for the future
We can be helpful in creating a simple ROI calculation to help determine the potential in your company by implementing a dedicated WMS. A Return of Investment calculation is basically an assessment of how soon an investment will repay itself.
Your company's CFO will most likely have an opinion regarding how soon the return should happen and what numbers to use for the calculation. We obviously begin by using the numbers you provide, but we are also able to provide sparring and challenge you on what considerations to include in the decision-making process.
The calculations provide an insight into the reductions in cost in the chosen functionality and contribute to the general overview of the solution, you are choosing to invest in. It is relevant to compare the solution to other alternatives, such as including the warehouse management in the ERP-system.
We make sure to calculate the ROI based on a simple but realistic comparison. It's important that ROI-calculations has a foundation in your warehouse logistics and in your knowledge and experience.
It is important for the calculation for a WMS-project to take account of all savings and costs. It must include not only the direct and visible costs, but also include less visible costs such as errors made in the warehouse and time wasted due to not having a WMS. It may seem simple - but it surprises many companies to figure out exactly how much it costs the company not to optimize the less optimal workflows that have become common practice in the warehouse.
There are common practices for all companies and yet no warehouses are the same. That is why it is important to keep the calculations as simple as possible. The focus should be on the factors and measurements that you as a company deem the most important. An ROI-calculation from Axacon will focus on the reduction in costs and potential gains. Gains that can remove barriers in your logistics and help realize your company's strategic targets for growth.