The ever-present Kirk Tanner is the mechanic of truth, fixing what may be broken in your business with his ROI Toolbox.
Welcome to Whiteboard Wednesday, I’m Kirk Tanner, Chief Marketing Officer at Fishbowl, and today we’re going to talk about ROI, or specifically, ROI Toolbox, because we have some tools we’re going to talk about a little bit later to help you calculate a ROI on investments that will help you manage your inventory better.
Of course, it all starts with you identifying some problems, some basic problems over here are just some inconsistencies in your business, whether it be revenue, or flowing of stock through your warehouses. Maybe you’ve got a broken supply chain, or several places where that supply chain is broken. And the last one down here is stock-outs, where you’ve got customers who are coming to you, you can’t sell them what you want to sell them because you don’t have it on the shelf.
So, basic problems that happen in all businesses that have inventory, but they don’t have to be serious problems IF you put together a nice plan to address these problems, how to solve these problems.
Now, in this particular case we’re going to talk about a software solution, because we’re a software company, but there are other kinds of things that you could do. But in this particular case, you’ve identified your problems, you’ve started to look at software. One of the things you want to know is you want to know “can I get a return on my investment if I’m going to go out and buy some software help me solve these problems?”.
So, I want to talk about some of the tools in the toolbox, and online, on our website, we have a ROI toolkit that actually helps you do these kinds of things to help you calculate what kind of return on the investment you would get if you were to purchase software.
The first one in this toolbox is ACCELERATE.
If you put this software solution into place, are there things over here that you can accelerate, which allows you to save money and increase revenue. These are things that you can calculate on your own, you know what the problems are, and so, if you could save a little bit of time or accelerate a process, what does that mean in dollars. So you figure out what those dollars are.
INCREASE REVENUE is another one.
You might be able to expand the number of products that you’re carrying because you have a solution in place, you can handle more, you can do it more efficiently. So by increasing the number of products, you might be able to increase revenue. You might be able to go into a market you never were before, and increase revenue. So you capture that increased revenue and that becomes part of your calculation for your ROI.
COLLABORATION is another one.
If you put a software solution in place, it’s much easier to collaborate within your organization, and even with your vendors. That collaboration can actually save you money. Identify how much you think is going to be saved, add that to your ROI calculation.
There’s a lot of processes in your business. What processes become optimized when you actually introduce the software. Figure out how much money is going to be saved there, and add that into your ROI calculation.
Sometimes you want people in your organization to do things exactly the same way. Putting software into place allows you to enforce that compliance, and that becomes very valuable across the board in optimizing, and collaborating, and just becoming more efficient.
There’s another kind of compliance. Sometimes you’re in an industry where you’re required to track certain kinds of information and provide reports, things like that. A software solution, like Fishbowl, allows you to address these compliance issues, and make sure that maybe you have certifications and things like that, that people may be looking for if they’re buying from you, but there’s issues here in compliance that actually increase revenue, or decrease costs, and that. again, can go into your calculations for ROI.
So take all of the dollars that you’re saving on a thirty day period, add those all up, come up with a total dollars, and then you can compare that to the cost of the software. We have customers that have purchased our software, they’ve gone through the ROI tool that we have online, and they’ve determined that they can pay for their software like in two, three, four months, based on the increased revenue, or the cost savings that they’re discovering over here.
And then once their software is paid for, all of these dollars go to the bottom line, and they’ve solved these problems over here. That’s what the ROI Toolbox is about, and again, if you want to check that out, you can go visit our site and look at our toolkit or our ROI tool, to help you calculate these specific things there.
That’s it for this week’s Whiteboard Wednesday, join us again next week, thanks.