“We have managed to quadruple in size and keep the same core team – it just delivers the efficiency we need to keep growing.”
Key Factors of WMS ROI
When making significant software purchases, management approval and commitment are crucial. One of the key factors that management typically looks for is the return on investment (ROI) and how quickly the system can generate savings and improvements. For warehouse operators seeking to build their ROI case, we have identified four main areas where a WMS can have a significant impact on your warehouse operation.
By optimising picking routes and walk paths,
a WMS can reduce travel time and increase
productivity, leading to substantial savings in labour costs.
With staff shortages being a challenge in logistics and supply chains, a WMS enables maximum efficiency, allowing workers to do more in less time, resulting in faster order processing and increased profits.
High turnover can negatively affect productivity and incur expenses. A WMS with intuitive features can automate processes and streamline training for new employees.
Fulfilment errors and mis-ships can be costly in terms of customer satisfaction and penalties. A structured WMS with checks and balances ensures accurate shipments, minimising costly mistakes.
Basic WMS ROI calculator
Number of Warehouse Staff 3
Number of Order Management/Entry Staff 1
Average Hourly Rate $30
Annual Average Value of Stock $750,000
Annual Shrinkage Per Year 0.75%
Order Shipping Accuracy 97% of Orders
Average Orders per Day 400
Cost per Order Error $50
Total Annual Labor Cost $750,000
Labor Cost per Order
Monthly Ship Errors
WMS Savings Highlights
Training and Setup
Total First Year Cost
Return on Investment
Months to Payback
First Year Additional Operations Savings:
Improve your warehouse operations with Datapel
“Our experience working with Datapel has been absolutely first class, we have been working with them for over 10 years, they continue to add value each year”