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ROI - Return on Investment


ROI - Return on investment is a popular financial metric for evaluating the financial consequences of individual investments. A high ROI means that gains compare favorably to costs.
DigitalBins is a multi-function product. As with any multi-function product, ROI will differ based upon usage and circumstance, so, if you have a theft problem, your ROI on a multi-function product with a security system component will be more favorable then it will be for a user with no theft problem.

DigitalBins has many functions with more to come. Each is designed to increase efficiency and reliability and to enhance the user experience.

In following frames, we discuss ROI per DigitalBins function.

Lean Inventory

DigitalBins will allow you to maintain extremely lean levels of inventory by reducing to minutes the span in time from awareness of low inventory to replenishment action.

The system will email a requirement notice to internal buyer(s) or a purchase order to a vendor immediately upon a bin reaching its assigned minimum level. Copies may be emailed to five recipients.

For bins replenished by internal inventory, DigitalBins will email a replenishment report listing every SKU at or below the minimum level. The report includes an image of the SKU and a suggested replenishment quantity. The replenishment report is barcoded and can be used as a receiving document by the Advanced Picking & Receiving functionality discussed earlier, making restocking easy and error free.

Est. Savings
Per Bin Per Year
       
 
5.00
  Leanest possible inventory levels allows you to decrease your investment in inventory   (frees cash @ 5% that is 50,000.00)
 
15.00
  Frees the purchasing agents to do other duties   (15.00 To determine the need for a PO & enter it * 10,000 Pos = 150,000.00)
 
2.00
  Insures manufacturing lines never stop due to empty bins   100.00 per stoppage * 200 = 20,000.00)
Total
22.10
       
      All calculations based on 10k bin locations, 1m Inventory valuation, 3 minutes to count each location, 10m in sales

Daily Physical Inventory – Machine to Machine (DigitalBins to WMS or MRP)

Everyone dislikes Physical Inventory! DigitalBins counts 100 bin locations per second, 10,000 in less than two minutes.

With this daily process in place, you will cycle count only bins where DigitalBins and your MRP system have differing counts. This eliminates physical inventory completely! It transforms the cycle counting into a purposeful reconciliation process.

Recognize theft quickly and correct procedural breaches like salesman taking samples without proper paperwork. Minimize balance sheet adjustments. Restore trust in the On-Hand quantity reported by your MRP system.

Est. Savings
Per Bin Per Year
       
2.0%
2.00
  Eliminate or minimize theft, procedural breaches, etc. before they negatively impact the bottom-line and system integrity.   (1m * 2% = 20,000.00 / 10,000 bins)
1.5%
1.50
  Eliminate physical inventory completely,   (3 minutes per bin * 10,000 bins / 60 = 500 man hrs. * 30.00 = 15,000.00)
0.6%
.60
  Eliminate data entry of physical and cycle count tickets.   10,000 locations / 120 hrs. * 50.00 = 6,00.00)
2.0%
2.50
  Eliminate physical inventory shutdowns / business interruptions.   (5 days ; value = 20,000.00)
0.5%
.50
  Adjust book inventory and actual inventory daily, resulting in up-to-date financial statements and reliable inventory counts and valuation.   (Value of timely information and accurate counts = 5,000.00)
Total
7.50
       
      All calculations based on 10k bin locations, 1m Inventory valuation, 3 minutes to count each location, 10m in sales

Part Locator

Enter an SKU number, scan the bar-code on the product, use the search-for feature or SKU image and the Part Locator will light a brilliant LED under the bin(s) containing that SKU.

The Part Locator will insure goods are received into the correct bin location. It will insure you've got the correct part to ship to a customer. It will help you find infrequently used inventory quickly.

Once you have selected a part, the Part Locator will allow you to go directly to the bin detail maintenance program where you may make changes, review purchasing or usage data, etc. You can view the detailed specifications of the part in image, .pdf or .doc format or follow a hyperlink to a web page.

Est. Savings
Per Bin Per Year
  10.00
   
   
   


Advanced Picking & Receiving

Returns due to improper picking and receiving have a significant financial impact on the bottom line. One incorrectly received item will have a ripple effect throughout every department in the company. Incorrectly shipped goods require customer service time, re-order processing, re-picking, re-shipping, put-away of the returned item (hopefully in the correct bin), unrecoverable freight expenses, etc. The average return cost 150.00 no matter what the cost of the incorrectly shipped item is.

DigitalBins advanced picking and receiving functionality guides warehouse personnel to the correct bin using LEDs.

It monitors and interacts with the operator during the transaction, verifies the accuracy of the pick or receiver by weight and informs the operator of a successful bin interaction using LEDs. In today’s just-in-time environment, picking errors are the quickest way to lose a customer.

Est. Savings
Per Bin Per Year
       
 
10.00
  Picking and Receiving Errors   (1% sales)
  5.00   The value of the loss of one customer   ((50,000.00)
Total
7.50
       
      All calculations based on 10k bin locations, 1m Inventory valuation, 3 minutes to count each location, 10m in sales

VMI Services

As you know, VMI providers charge for their services. When VMI services were compared to the old way of doing things, the extra costs could be justified. That was before DigitalBins. In fact, VMI providers are finding DigitalBins delivers ROI for them.

Why not take the time to compare the cost of your current VMI solution to an in-house DigitalBins Inventory Management System.

DigitalBins will order parts automatically from your VMI provider or any supplier for substantially less per SKU. Why continue to pay 1.20 for a .05 bolt. Why pay for unneeded services, technology fees, equipment rental fees, consignment fees, etc.

DigitalBins will allow you to control inventory in-house for substantially less.

Est. Savings
Per Bin Per Year
       
  30.00        

Kitting

The kitting process will make perfect kits every time.

The BOMs and RMs may be imported or DigitalBins will query your WMS/MRP DBMS. The kitting program will display the number of kits that may be built based on the RMs in each DigitalBin and the BOM detail.

The LED clusters display the quantity needed under each bin used in a BOM. The process guides the operator from RM to RM. One LED is turned off for each RM pulled. When the correct quantity is pulled, all LEDs will flash and a barcoded RM label may be printed. When all RMs for the kit have been pulled, the computer will say “Kit Complete” and a barcoded BOM label may be printed.

This function may also be used as a pre-programmed process guide for mechanics, surgeons, etc.

Significant savings in time and accuracy will be realized.

Est. Savings
Per Bin Per Year
       
  25.00        


RFID Crib Security

This built-in security functionality will allow you to create a secure or semi-secure environment in any cabinet, crib or warehouse.

The process is started by an employee swiping an RFID card reader. DigitalBins will verify access. If a specific job and/or customer its to be charged, a job number and/or customer number may be entered. Before the door is unlocked, DigitalBins will perform a speedy count, turn on the lights and then buzz to signal the door strike has been released. Once the door is closed, the RFID reader displays a red occupied LED. The employee freely picks from or receives to any DigitalBin location. When the door is opened and closed, the lights are turned off, the RFID reader led will display a green LED, and DigitalBins will print a Bin Ticket receipt of all activity.

This process eliminates theft and accurately assigns an employee, customer, job, etc. to every bin access.

Est. Savings
Per Bin Per Year
  15.00
   
   
   


Bin Security - Watchdog

This built-in functionality will protect inventory after hours.

A scheduler kicks-off the WatchDog program. If any bin is touched while WatchDog is running, DigitalBins will time-stamp each bin access, blast the sound of a junk-yard-dog barking (or any .wav file) and send email or text messages to up-to five recipients per bin. Knowing the exact time will help if a video surveillance system is operational.

DigitalBins will generate a report of every part and quantity removed which will be helpful in filing a police report and insurance claim if any. This feature could save thousands in one incident.

In addition, this security feature will help to stop salesman from removing customer samples and put all staff on notice that the bins are watching!


Est. Savings
Per Bin Per Year
       
  10.00        

Cutting-Edge, Technology, Buzz & Social Benefits

DigitalBins makes every inventory management task simpler. LED lights assist with decision making and counting. They affirm for employees that their actions are in sync with the system or process. They make every job more enjoyable and stress-free.

DigitalBins can help to expand the diversity of employees. It will allow seniors, handicapped and non-English speaking individuals who need to work, to be more productive. DigitalBins can help your company become more socially responsible!

Everyone feels better knowing they are a part of the future. Employees will immediately recognize the benefits and see DigitalBins as something new and very cool. Customers and vendors will wonder about the light show as they tour your facility. Your decision to invest in this new technology will create a positive buzz.

Est. Savings
Per Bin Per Year
       
  20.00        



ROI Per Function Per Bin Location Per Year (est)
 
Lean Inventory 
$22.10
Daily Physical Inventory
$7.10
Part Locator
$10.00
Advanced Picking & Receiving
$15.00
VMI Services (Vendor Managed Inventory)
$30.00
Kitting $25.00
RFID Crib Security System
$15.00
Bin Security - WatchDog
$10.00
Social Benefits
$20.00
 
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$154.20