It’s either “adapt or die”! If you implement the necessary technology in your business, you should fully understand the ROI of the investment.
Every aspect of the supply chain industry has been stretched to the limit over the past few years. Let’s just think back to the chaos of 2021. From Ever Given being stuck in the Suez Canal, a global pandemic, and severe weather conditions, businesses felt the harsh effects of supply chain disruptions.
It has become essential for business owners to have:
- Full visibility of their inventory.
- Use tools that help collate complex data quickly and accurately to instantly flag problematic areas.
- Implement an effective demand planning solution to help you stay on top of the inventory game!
On average, we see our customers save greater than 10% of their current inventory value, not to mention the time savings that our customers receive. Some of our customers are used to spending close to 40+ hours each week putting their orders together. They are now quickly placing accurate orders on a Monday morning. We also see our customers recoup their investment in just four short weeks – Eric Chicoine, VP of North America Sales at Netstock.
It’s either “adapt or die”! If you implement the necessary technology in your business, you should fully understand the ROI of the investment. After all, you can no longer only rely on spreadsheets. Using spreadsheets is excellent, but it’s best to have a cloud-based demand planning solution in place to compare the data in your spreadsheet or ERP. In addition, people are always on the move, and having the convenience to connect to the system from anywhere and with any device is refreshing and allows you to be more agile and responsive in your planning.
From executing your business’ strategy to streamlining your inventory processes, implementing a demand planning solution in your business can help you reach your optimal fill rate.
It’s no wonder businesses choose a cloud-based demand planning solution, like Netstock.
One of our Netstock customers, Justin Dudley, Logistics Director from TruAudio highlights, “One of our warehouses had an issue with excess stock that Netstock helped us identify. We were able to save money by redistributing that stock to the right places, and we cut the value of the excess stock at that warehouse by nearly half in just six months. The ROI we get from Netstock makes it an easy investment decision.”.
Tim McCredie, General Manager from Barrett Distributors, implemented Netstock and highlights the following, “One of our key reasons to implement Nestock was to reduce excess stock. The $500k+ that’s now in our bank account rather than on our warehouse shelves is evidence enough we have achieved that.”
The question is: What’s the real ROI of implementing demand planning software for your business?
1. What is ROI?
One of the most important calculations for any business is ROI. When buying any software solution for your business, you should determine if the benefits are greater than the cost. Most commonly, this is done by calculating your ROI.
According to SupplyChain 247, supply chain, logistics, and material handling professionals:
ROI is a simple way to determine implementation success, and whether the project has yielded positive payback for the business. All of the promises of cloud technology are proving to be true. Most significantly, it reduces or eliminates IT infrastructure costs and the staff time associated with maintenance and upgrades. This alone delivers a huge ROI for early adopters.
2. The financial gain of implementing cloud-based software.
When it comes to calculating the ROI of software, some financial factors should be considered.
- Increased revenue: Your revenue should enhance depending on the implemented software and its expected outcome.
- Lower infrastructure and maintenance costs: Reduced costs for maintenance, infrastructure, and staff members.
- Free up working capital: Reduce your upfront expenses and avoid unnecessary costs by implementing relevant software from the start.
Netstock customer, Becky Wilkinson, Supply Chain Manager from Hartland Controls says, “We were able to reduce our inventory value by an impressive $1,000,000 thanks to Netstock.”
3. The benefits of implementing Netstock in your business.
The ability to forecast in any business is vital and gives the ability to make informed decisions and develop data-driven strategies. It shows you know your business, where you are heading, and your goals and objectives. Planning and forecasting accurately means being more prepared and having the right information to understand how much capital to invest in people, technology, and processes.
“What used to take weeks to refresh and review our data now takes a fraction of the time and allows us to make more timely decisions,” says Dan Watterson, Netstock customer and Global Head of Operations from Zhik.
7 Benefits of implementing Netstock:
- You can predict and determine your demand more accurately.
- Automation saves you time, money, and effort while increasing your team’s productivity levels.
- Have visibility of your inventory KPIs at all times.
- Make more sales and generate accurate forecasts.
- Reduce unnecessary inventory costs.
- Forecast up to 12-24 months.
- Measure your supplier performance and improve your supplier lead times.
By implementing Netstock, you’ll be working with some of the most experienced supply chain professionals in the world. This solution was created with all businesses using an ERP in mind. All too often, we find that we are not only selling a great solution, but we are also helping our customers with inventory optimization best practices.