Merchandise Planning and Analysis Software | Typical Financial Benefits

	Typical Financial Benefits
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Inventory is typically the largest expense and asset of a catalog or e-commerce company and significantly impacts profits. The example below presents the expected financial gains for a multi-channel merchant with $10 million in annual sales and modest annual growth of 3%, reflecting the following improvement assumptions over a 5-year period in the four areas where Direct Tech software most directly impacts profits:

Improved gross margin rate of 0.5% resulting from declining overstocks
Improvement in annual inventory turns from 3.0 to 3.2
Reduction in backorder costs through a 2.0% increase in initial order fulfillment rates
Increased sales through a 1.0% improvement in total order fulfillment rates

The figures represent the annual expected gains for each of the five years presented.

The results above are typical and reflective of the stated assumptions.

Contact us if you would like to see a detailed analysis of the impact we can have on your business, including a tailored ROI analysis.

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