SAMPLE COST BENEFIT ANALYSIS. With Inventory Smart, you can save substantially on labor costs and on costs associated with storing and managing your inventory, in ways you may never have imagined.*

 

We think when you see the following example, it will be clear that Inventory Smart has the potential to recoup your investment in the first month. Thereafter, the savings add up quickly. AND YOU WILL REALIZE THESE SAVINGS YEAR AFTER YEAR, AFTER YEAR.

 

COMPARE THE MONTHLY COST OF TYPICAL INVENTORY PROCEDURES DONE MANUALLY VS. USING INVENTORY SMART.

 

(The following example shows how Inventory Smart can be used in a hospitality setting. Inventory Smart offers similar efficiencies in many other industries. If you'd like to find out how Inventory Smart can save you under your specific circumstances, please CONTACT US.

 

PLACE AN ORDER

MANUALLY:

 

  1. Conduct manual/visual inventory of stockroom to determine items to be ordered. 25 minutes
  2. Identify vendor - research past orders or contact other departments/corporate offices if not readily available. 10 minutes
  3. Identify vendor contact information - research past orders or contact other departments/corporate offices if not readily available. 5 minutes
  4. Determine minimum orders, case pack requirements and freight costs - contact vendor. 10 minutes
  5. Generate PO - transfer items to order, including item descriptions, item numbers, quantities and prices. 40 minutes
  6. Submit order. 5 minutes

 

TIME: 95 MINUTES/ORDER

20 ORDERS/MONTH (2x/MONTH FROM 10 VENDORS)

TOTAL TIME: 1,900 MINUTES MONTHLY

PLACE AN ORDER

USING INVENTORY SMART:

 

  1. Review "Stockroom Orders" page. 1 minute
  2. Click "Create Order" button. 0.1 minute
  3. Enter PO#. .5 minute
  4. Click "Save" button. 0.1 minute
  5. Submit order. 5 minutes

 

 

 

 

 

 

 

 

 

 

 

 

 

TIME: 6.7 MINUTES/ORDER

10 ORDERS/MONTH 1x/MONTH FROM 10 VENDORS)1

TOTAL TIME: 67 MINUTES MONTHLY

 

1Assumes 50% fewer orders placed per month due to Inventory Smart's ability to help you maintain stocked items needed.

RECEIVE AN ORDER

MANUALLY:

 

  1. Locate PO in files. 3 minutes
  2. Manually write quantities of items received, enter shortages/overages. 5 minutes
  3. Submit paperwork to accounting and/or purchasing departments. 10 minutes
  4. Accounting and/or purchasing departments generate manual receipt. 15 minutes
  5. Purchasing department adjusts PO for shortages and delivers to receiving department. 20 minutes

 

TIME: 53 MINUTES/ORDER

20 ORDERS RECEIVED/MONTH (2x/MONTH FROM 10 VENDORS)

TOTAL TIME: 1,060 MINUTES MONTHLY

RECEIVE AN ORDER

USING INVENTORY SMART:

 

  1. Locate PO on mobile device - touch "Receiving" button and select specific PO. 0.3 minute
  2. Adjust or verify quantities of items received, enter shortages/overages. 5 minutes
  3. Touch "Add to Inventory" check-box - inventory and PO automatically updated. 3 minutes
  4. Click "Save" button. 0.1 minute
  5. Submit order. 5 minutes

 

TIME: 8.3 MINUTES/ORDER

10 ORDERS/MONTH 1x/MONTH FROM 10 VENDORS)1

TOTAL TIME: 83 MINUTES MONTHLY

 

1Assumes 50% fewer orders placed per month due to Inventory Smart's ability to help you maintain stocked items needed.

INVENTORY AND RESTOCK A GUEST ROOM

MANUALLY:

 

  1. Locate inventory lists with correct configuration for each of 100 units (2 minutes each). 200 minutes
  2. Manually write unit number, date and name for each of 100 units (.5 minutes each). 50 minutes
  3. Take inventory on printed list for 100 units (12 minutes each). 1,200 minutes
  4. Report 25 missing items noted in inventory lists to stockroom (5 minutes each). 125 minutes2
  5. Pick items from stockroom based on verbal description for each of 25 items (3 minutes each). 75 minutes
  6. Restock units with 25 missing items (15 minutes each). 375 minutes
  7. Retrieve and restock 5 items delivered incorrectly based on inconsistent item descriptions and redeliver correct replacement items to rooms (15 minutes each). 75 minutes

 

TIME: 2,100 MINUTES

 

INVENTORY AND RESTOCK A GUEST ROOM

USING INVENTORY SMART:

 

  1. Scan QR code with mobile device to instantly access inventory list specific to unit number and employee, with photo, description and required quantity for each item for 100 units (0.1 minute each). 10 minutes2
  2. Conduct inspection on mobile device for 100 units, adjust quantities to reflect 25 missing items - information is instantly updated across Inventory Smart 10 minutes each). 1,000 minutes
  3. Pick items for 5 units at a time, 5 times/month using consistent descriptions from categorized lists on mobile device (10 minutes each time). 50 minutes
  4. Restock items for 5 units at a time, 5 times/month with correctly identified items (15 minutes each time). 75 minutes

 

 

 

 

TIME: 1,135 MINUTES

 

2Assumes 1 in 4 units has one missing item.

 

MONTHLY TOTAL TIME: 5,060 MINUTES (84.33 HOURS) AT $14/HOUR, TOTAL COST: $1,180.62/MONTH

MONTHLY TOTAL TIME: 1,285 MINUTES (21.42 HOURS) AT $14/HOUR, TOTAL COST: $299.88/MONTH

MONTHLY TIME SAVINGS WITH INVENTORY SMART: 62.91 HOURS - $880.74

HIDDEN SAVINGS WITH INVENTORY SMART INCLUDE SAVING ON OVERSTOCKING, ON FEWER TRIPS TO THE STORE AND, SIGNIFICANTLY, ON RECOVERY OF LOST ITEMS.

*Your savings will vary, depending on factors such as prevailing regional labor costs, local warehouse rental rates, relative property size and on the inventory system you now use.

© 2017 Inventory Smart