Post by Ferag Solutions

Most automation business cases get sent back for revision. They fail on the same three questions. Text: The operations case is solid. The vendor proposal is on the table. The site visits went well. And then the investment review asks: What is the payback period if volume comes in 15% below projection? How does this compare to our current cost per processed order? What did a comparable operation actually achieve not what the vendor projected? These are not unreasonable questions. They are the standard in any serious CAPEX process across fashion, retail, beauty, and general merchandise. And most automation business cases cannot answer them because they were built around technology specifications and throughput targets, not economic outcomes. The Cost of Order Fulfillment (CoOF) was built to answer all three. With data that is independent of the vendor, comparable across operations, and defensible in front of a board. When CoOF is the foundation of the business case, the investment conversation changes. It stops being "trust us, it will work" and becomes "here is what one order costs today, here is what it will cost after, here is the same calculation from a comparable operation." That is what gets approved. Before the next investment review: can your current business case answer all three questions? https://lnkd.in/dtm48WTG #CoOF #CostOfOrderFulfilment #AutomationROI #FulfilmentAutomation #Intralogistics #WarehouseAutomation #SupplyChainFinance #IntralogisticsInvestment