Typical Return on Investment in Voice Logistics
Typical Voice ROI for 30 Terminal Deployment
Number of users per shift |
30 |
Number of shifts per week |
10 |
Number of hours per shift |
9 |
Weeks of operation per year |
52 |
Labor Cost per hour for floor operations |
$17 |
Shifts per year |
520 |
Working Hours per Terminal per Year |
4680 |
Expected Productivity Increase |
10% |
Hours Saved (4680 Hours x 10%) |
468 |
Annual Per Terminal Saving (468 x $17) |
$7,956 |
Annual Productivity Savings ($7,956 x 30 Terminals) |
$238,680 |
Current Error Rate per 1000 BEFORE auditing |
1.5 |
Cost per Error |
$10 |
Reaches per worker per hour |
250 |
Time spent on auditing per shift (minutes) |
480 |
Labor Cost per hour for Auditing |
$17 |
Percentage of Auditing to be eliminated |
0% |
Expected Improvement |
|
Accuracy Improvement - Error Reduction |
25% |
Working Hours per Terminal per Year |
4680 |
Annual Items Picked per Terminal (4680 Hours x 250 Items) |
1,170,000 |
Annual Errors per Person Per Year (1,170,000 Items x 0.0015) |
1755 |
Annual Errors Eliminated per Terminal (1755 Errors x 0.25) |
439 |
Annual Accuracy Savings per Terminal (439 Errors x $10.00) |
$4,390 |
Annual Accuracy Savings for 30 Terminals |
$131,700 |
Estimated Total Annual Savings |
$370,305 |
Expected ROI |
|
Total Investment |
$181,680 |
Total Annual Savings ($238,680 + $131,700) |
$370,305 |
Savings Per Week |
$7,121 |
Payback Period |
Under 6 Months |
The Equation is Complex. The Returns are Clear.
PEAK can provide you a no-obligation analysis of the investment required and returns that can be realized in your unique environment. This in-depth ROI study will provide a no-nonsense look at the pluses and minuses involved in a voice-enabled solution. Schedule yours today.
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