ROI Calculator

Smart IP&O

Check our ROI Calculator below, enter the data and scenarios that best meet your company’s financial objectives, and document the projected impact and ROI.

Calculate your potential savings
Analyze the impact of deploying Smart IP&O
Find out what your projected ROI is

Our ROI Calculator analyzes the operational data you provide and generates a rough-cut assessment of potential cost savings from using Smart Inventory Planning and Optimization. It just takes a few moments and a few details about your business.

Smart IP&O ROI Calculator

The ROI figures presented here are intended to communicate the potential financial impact associated with better stock management and forecasting. Actual customer results are shared here . Please schedule an introductory call with our team to learn more about conducting an assessment using your data.

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Here are just a few examples of the benefits and economic impact

Meet Customer Demand

Accounting for inherent demand patterns such as trend and seasonality as well as external and internal feedback on events/promotions minimizes unexpected sales orders that would otherwise be backordered or lost. A service parts distributor increased perfect order fill rate from 92.5% to 95%.

Increase Revenue

Optimizing Inventory Levels means savings realized on one subset of items can be reallocated in order to carry a broader portfolio of “in stock” items allowing revenues to be captured that would otherwise be lost sales. A leading distributor was able to stock a broader portfolio of parts with savings used from inventory reductions and increased part availability by 18%

Reduce Inventory Costs

Less critical Items that are forecasted to achieve 99%+ services levels represent opportunities to reduce inventory. By targeting lower service levels on less critical items, inventory will “right size” over time to the new equilibrium decreasing holding costs and value of inventory on hand. A major public transit system reduced inventory by more than $4,000,000 while improving service levels.

Improve Planner Productivity

By strategically planning the inventory parameters, planners will spend less time managing outputs from their ERP and have more time to focus on value add activities. Considerable time will also be saved by reducing the number of emergency out of stock events that drain resources. A repair service operation reduced the number of emergency shipments on spare parts by 17% in the first year following implementation.

Reduce Product Costs

Forecasting provides a stronger foundation on which to negotiate with vendors. By using statistical forecasts and estimates of best and worst case demand scenarios, expectations between supplier and customer can be established. After collaborating with a major contract manufacturer using the demand forecast as a guide, An aviation equipment contractor reduced material costs on a major product line by $187,000

Organizational Consensus

When you are able to model and communicate expected demand and likely ranges along with the precise tradeoffs between service levels and inventory cost in your strategic inventory plans, you will establish consensus among all the stakeholders. Once true consensus is established, the organization knows where risks are likely, where they are not, and can plan accordingly.