ROI…Return on IntelliTrack

When investing in an IntelliTrack software application for your business it’s important to justify the costs involved. To help you through your purchase we’ve provided some of the cost effective benefits of an IntelliTrack software solution, and a simple example explaining how you can save money by utilizing barcode technology. Is the investment worth the return? It’s imperative to evaluate the costs and benefits of a software system before embracing a new process into your organization. Some things you need to consider include:

  • Your budget: what can you afford?
  • Your challenge: what will help you overcome current challenges?
  • Your plan: is this investment the best fit for your company?
  • Your time: how much time are you willing to invest?
  • The results you need to justify an investment.

Benefits of an IntelliTrack Application:

#1 Minimize user error

All IntelliTrack software validates data entered by the user; keyed or scanned you can rely of the highest degree of inventory accuracy.

#2 Print barcodes directly form our software

Each IntelliTrack application includes industry leading barcode printing capabilities.

#3 Exploit technology; Mobile computers and barcode scanners

When collecting inventory, the use of a barcode scanner is much more efficient than hand writing and entering all of your inventory data manually. During a manual inventory, papers can get lost or damaged, items miscounted, and certain workers handwriting could be far from legible. With barcode scanning, actual inventory time is often decreased by more than half.
The American recognized standard is that each paper based transaction takes approximately 7 seconds. ROI determination is that barcode scanning of the same transaction improves the labor efficiency by 60 – 70% and a mean transaction time of 2.1 seconds.

#4 The ability to organize and manage strategic operational data

All applications contain valuable reporting features on the data collected and how it can relate to your business. With IntelliTrack software, you have the ability to instantly create reports on how your inventory relates to business functions.

 

Achieve ROI

IntelliTrack applications not only provide for storage of collected data, they enable specific activities. Each application provides a specific ROI in its design. In general terms IntelliTrack applications can fully pay for themselves in as few as 90 days and in the majority of cases less than 1-year.

Inventory Performance Methods and ROI

Using Paper vs. Barcode Scanners

The following example describes a simple inventory situation for a small warehouse and the money that can be saved each year by utilizing barcode technology.

A company must conduct an inventory of a small warehouse. There are 10,000 SKU’s (Stock Keeping Units) in 4000 locations that need to be accounted for in the warehouse. Item counts are required for each location. Item counts for each location take approximately 1 minute when counting manually with a pen and paper while the same item count takes approximately 18 seconds using a barcode scanner. Due to the 99.8% inventory accuracy when using a barcode scanner, inventory counts were no longer necessary twice a month and were decreased to twice a year. 


Inventory Method:


Annual inventory counts


Hours to complete inventory


Annual inventory time (hrs)

Labor cost per inventory ($10/hour)


Annual labor cost


Pen & Paper


6


166


996


$1,680.00


$10,080.00

Barcode scanner


2


50


100


$540.00


$1,080.00

By using barcode scanners the company described saved $8,920 annually.

For detailed information explaining the above example, please look at our ROI example.

Determine your Return on IntelliTrack


To walk through the costs and benefits involved in an IntelliTrack warehousing application use the IntelliTrack Easy Cost Justification and ROI Planner.