Order to invoice - 5 core messages 1 How much time/week is spent on ordering and planning for paper purchases today? How much time/week would be spent with the new order process, if all business was done like this? 30 hours
5
hours
2
With an improved goods receipt routine, how much time would be saved per week? How much time is spent on receiving and checking of invoices for paper per week? How much would be spent with receiving invoices in an automated process, for goods under consignment agreements
10
hours
3
20
hours
5
hours
What is the expected implementation rate of these new procedures? Enter % of total business Year 1 Year 2 Year 3 15 25 50 20 50 70 Year 4 Year 5 80 80 100 100
Order process Goods receipt
Invoice
15
30
50
100
100
Benefits: Order process Goods receipt Invoice Year 1 Year 2 Year 3 5,625 9,375 18,750 1,750 2,250 4,375 4,500 6,125 7,500 Year 4 Year 5 30,000 30,000 8,750 15,000 8,750 15,000 37500 8750 15000
Total
9,625
18,250
32,375
53,750 53,750
ROI calculator
Consignment stock case: 1 How much time/week is spent on ordering and planning for paper purchases today? How much time/week would be spent with the new VMI process, if all business was done like this? 30 hours
5
hours
2
What is today's inventory value for paper possible to buy under a VMIagreement (tons * average cost) How many days of use does this cover? How many days of use would there be once the process is fully operational, where these agreements could be used?
800000
EUR, Dollars, or other Currency
14 5
days days
3
With an improved goods receipt routine, how much time would be saved per week? How much time is spent on receiving and checking of invoices for paper per week? How much would be spent with a fully operational automated process, for goods under consignment agreements
10
hours
4
20
hours
5
hours
What is the expected implementation rate of these new procedures? Enter % of total business
VMI process Goods receipt Invoice
Year 1 15 20 15
Year 2 25 50 30
Year 3 50 70 50
Year 4 80 100 100
Year 5 80 100 100
Benefits: VMI process Goods receipt Invoice Year 1 17,196 1,750 2,250 Year 2 28,661 4,375 4,500 Year 3 57,321 6,125 7,500 Year 4 91,714 8,750 15,000 Year 5 91,714 8,750 15,000 114643 8750 15000
Total
21,196
37,536
70,946
115,464
115,464
1 2
What is your internal interest rate? What is the yearly cost rate for the following categories? Purchase managers Goods receipt staff Invoice handling staff
15
%
60,000 35,000 40,000
EUR, Dollars, or other Currency EUR, Dollars, or other Currency EUR, Dollars, or other Currency
Based on your preliminary analysis of papiNet implementation, what do you estimate the following implementation related costs to be ? Year 1 Year 2 Year 3 Year 4 Year 5 0 3,000 4,000 5,000 6,000 25,000 15,000 20,000 20,000 10,000 10,000 0 20,000 10,000 25,000 0 30,000 10,000 5,000 10000 20,000 10,000 5,000 0 20,000
a. Software (middleware,etc) b. Consultancy fees (IT related) c. Consultancy fees (for implementation) d. IT hardware purchase e. Manpower to control the processes
Total
80,000
43,000
69,000
50,000
41,000
Information Flow: Inventory Management
CUSTOMER
PLAN/FORECAST
SUPPLIER
PRODUCTION PLAN
USAGE
INFO FOR PLANNING MODEL
DELIVERY
INFO ON USE OF GOODS
UPDATE FORECASTING MODEL. INSTRUCTION FOR REPLENISHMENT
GOODS RECEIPT
RECEIPT OF INFO OF GOODS
DELIVERY
Allows for stand and for filled tru
RECEIPT OF GOODS DAMAGE CONTROL
CONFIRMATION OF PROCESS WORKING
The customer ca routine and also update routine, i
Benefits: Year 1 Order to invoice: Consignment stock 9,625 21,196 Year 2 18,250 37,536 Year 3 32,375 Year 4 53,750 Year 5 53,750
70,946 115,464 115,464
Costs
-80,000 -43,000 -69,000
-50,000
-41,000
Total
-49,179
12,786
34,321 119,214 128,214