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COST SAVINGS JUSTIFICATION SHEET
What will this system save you? Does it make sense for your size
business?
Just simply answer the following eight
questions as accurately as you can, and we
will give you an immediate estimate of your expected savings.
This program calculates costs based on the number of minutes involved
in handling the ordering process. It does not take into account any
overhead burden costs. These costs would actually increase savings in
all cases.
Definitions
Order Processing Savings
- This is the difference in cost to place the orders based on your
input of
- *Salaries
- *Time to place an order, and
- *Number of orders placed.
Inventory Savings
- This is the difference between your average calculated inventory
dollars and our calculation, based on one week supply. The cost of
holding inventory is valued at 22 percent.
Internal Cost Savings
- These savings are based on reducing your cost of
- *Mailing, telephoning, or giving your order to a salesperson,
- *Filing documents,
- *Eliminating duplicate forms, and
- *Handling individual billing for each item.
Consolidated Billing Savings
- These savings are calculated by reducing your billing process to
one consolidated bill per month, rather than paying for individual
items when they are received.
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