Inventory Management Implementation

The True Cost Of Inventory Management Implementation

If you could cut costs, would you? We are guessing the answer is yes. 

Now, would you cut costs if it meant less quality? 

Would you cut costs if it meant costing thousands of more dollars later on? 

We are assuming your answer is a resounding: NO! 

Here at Clearinity, we don’t sell our clients on why they need an inventory management system and supply chain management. What we do is provide education about what an inventory management system does for their company. 

We educate our clients on the golden triangle theory—the idea that nothing can be cheap, easy, and of good quality. You will always sacrifice one choice to achieve the other two alternatives. Implementing an inventory management system shouldn’t mean sacrificing quality for cheap and easy.

And when it comes time to educate our clients who choose the route of cheap and easy, we make it clear it will cost them thousands of dollars more later down the road. They often don’t understand why. 

Clearinity knows the true cost of implementation from our years of experience. We can identify the business process that will make your unique business sink or swim in a new inventory management system through our discovery process. We can save you time and money later down the road by helping you to understand your true cost of implementation. 

What is the True Cost Of Inventory Management Implementation? 

The true cost of implementation is based on the theory of “True Cost of Ownership,” or TCO. TCO is important because it determines the ROI of your investment. The TCO is calculated by:

  • Acquisition costs
  • Operating costs
  • Personal/resources cost 

Analysis of TCO before implementation will shed light on the systems and software that are better and most cost effective to invest in now rather than later on when you have outgrown your current system. 

At Clearinity, we help our clients calculate the true cost before they commit to an inventory system. We use the facts found during discovery to help our clients see future potential growth and supply chain process problems and help them understand that while the true cost of implementation can seem daunting and incredibly expensive now, it is a one-time fee now rather than a more costly investment later on. When they cut corners and costs, it ultimately means more money spent on personnel, operating, and acquisition costs later on as they continue to train and retrain their team on new integrations. Additionally, not investing in the cohesive full implementation means more time and money spent keeping all their systems running in sync and up to date. A complete solution would have cost much less because it centralized all data in one location and kept itself up to date without the need for multiple personnel. 

But do I really need Clearinity…?

So you are onboard. A complete cloud inventory system solution is worth the investment, but you are considering if you really need us to help you. 

“ Well, I know my business the best. I think I can choose the right inventory management system.” 

“ You guys can help me understand my business more, but I have a great team of people that will implement it for me.” 

Suppose you find yourself resonating with the above. In that case, you may not have considered that your team can prolong your implementation time, costing you more resources and opportunities, or how the complexity of your workflows impacts an inventory management platform’s success. We take into deep consideration your business problems, your successes, your workflows, your product complexity, and your team while hand selecting only the most viable inventory management systems for you. Once we have chosen the platform, we give you an actual live experience of the platform and tell you the TCO. Helping you weigh the costs so you can make the most informed business decisions. Once we agree upon a decision, we then help your team save time and money by training them alongside us in implementation, so they walk away knowing how to run the systems we help them build. 

Suppose our experience, knowledge, and sincere interest in your success isn’t convincing enough. In that case, Clearinity knows that your success rate of inventory management software without us is only 52%. If you also factor in new technology that didn’t precisely fit your team, business model, or other complicating factors, your success rate drops to 25.6%. Curious how we got those numbers? We have experience working with clients who have tried to do it themselves. We also know your business’s deep complexities and how each of the systems interacts with any given combination of factors from our experience doing what we do. When you decided on your platform, you may have only had a 90% understanding of your actual problems. Without that full understanding of your issues, you can’t foresee the potential pitfalls of the technology software you choose, ultimately deterring your success rate later down the line.

To top it all off, your success rate is only valid for the growth stage your business is in. Without the forethought of potential growth hindrances down the line and the professional knowledge of what to look out for, you could invest in a system and spent time implementing it yourself. If so, you may find yourself outgrowing a system and have to invest in something new, doubling or tripling the cost of the original implementation.  By choosing us as your implementation team, we can help lower your TCO and help you grow your business sustainably!

Still wondering why TCO matters so much stay tuned for “Why Does True Cost of Ownership Matter So Much” next week by following us on LinkedIn below!