DemandCaster Supply Chain Planning ROI Calculator

The DemandCaster Supply Chain Planning ROI calculator is a conservative calculation of the financial impact of a comprehensive demand and supply planning and/or sales and operations planning (S&OP) process. For example, the ROI does not include the time saved by automating much of the analysis done with spreadsheets at most companies. In addition, the demand planning ROI calculation does not include the improvements that can be made with the time savings. In many cases, these savings alone cover the annual cost of DemandCaster.

As a guide to assess your demand planning ROI, please consider that DemandCaster customers have typically achieved strong financial results within the first six months of implementation, including the following:

  • Reducing inventory between 20% and 30%.
  • Increasing service levels by 10% 
  • Decreasing production lead times from 60% to 77%.
  • Improving manufacturing capacity from 22% to 30%.
  • Increasing sales revenues per employee between 24% and 33%.

Complete the form below with your companies numbers and objectives to project the demand planning ROI in your operation. Below is a summary description of the information required in each section:

  • Company Information: In order to receive a copy of this ROI worksheet you will be required to complete the requested information. However, if you do not require a copy, you may complete the information and view the result without submitting.
  • Current Financial Performance: Input the required fields with your current annualized Revenue, Cost of Goods Sold, Inventory, and Customer Service performance data
  • Goals/Assumptions: Input the required fields with your desired inventory turns and service level improvement goals. Estimate your annual DemandCaster cost. Pricing starts at $650/month. 

The following assumptions will be used to calculate ROI:

  • Service level performance will improve via better deployment of inventory resources. Assume impact will help increase revenue by 25% of the improved performance. 
  • Cash flow improvement is a combination of cash created via reducing inventory and COGS improvements.
  • Improved inventory management provides additional benefits that are excluded for simplicity sake.

The calculator will calculate the cash flow impact and ROI of the initiative.

  • Current Performance Measures

    Please enter your current performance measures.
  • Enter your current revenue
  • Enter your current COGS
  • This is your calculated gross margin
  • Enter your current inventory value
  • Enter your average delivery lead time
  • Enter your current on time delivery performance %
  • This is your calculated current turns per year
  • Based on your inputs, this is the level of inventory your company should be carrying.
  • Based on your inputs, this is the number of inventory your company should be realizing.
  • Performance Goals

  • Enter the inventory turns your company would like to achieve. Use the optimal turns above as a guide.
  • Enter the on time performance your company would like to achieve.
  • Assumptions

  • Enter your companies cost of carrying inventory. This value typically falls somewhere between 15% to 35%
  • Enter your estimated annual DemandCaster subscription cost.
  • Projected Impact

    Below is the projected financial impact of achieving your aforementioned goals by implementing DemandCaster. The impact of improved inventory planning increases on-time delivery performance and reduces COGS. Improved delivery performance helps increase revenue by 25% of the on-time delivery performance metric. This is achieved by eliminating lost sales due to stock-outs. It also improves COGS performance by eliminating obsolescence, lost inventory, and overall cost to carry inventory. There are additional benefits through this process that are excluded for simplicity sake.