Listaso Blog

How To Calculate Your Return On Investment For An Inventory Management Solution

Before buying any inventory management solution for your distribution business, you should determine if its benefits will be able to cover and surpass the cost. Most commonly this is done by calculating an ROI (Return on Investment). 

Carmen Canas vicepresident and cofunder of Listaso
B2B Specialist

Before buying any inventory management solution for your distribution business, you should determine if its benefits will be able to cover and surpass the cost. Most commonly this is done by calculating an ROI (Return on Investment). 


In today’s business world, software is critical if you intend to remain competitive. Having an advanced inventory solution like Listaso Inventory will increase productivity in many areas of your warehouse operations, provide competitive advantages and open up new revenue opportunities that never existed previously.


If you are planning on acquiring a software solution to automate your warehouse and inventory, make sure it is convenient for your business by evaluating each of the areas that the B2B Mobile Solution will improve. First of all, let’s dive into the areas of improvement for your distribution business. 


Areas of Improvement with Inventory Management Solution




Automation lets you carry out key distribution operations faster. Not only will Listaso accelerate your ability to serve your customers, but it will also make everyday processes move along at a much faster pace.


Right now, you might have processes that take around five hours each week, but with Listaso you can reduce that time to only 15 minutes. Week after week savings like this add up. This will also lead to more informed decisions based on better and timelier information. 




Listaso Inventory can help you increase revenue due to better inventory management. You might be able to sell more simply because you can bring products in faster, ensure you never have a stockout or can move orders out the door more quickly and efficiently.


Communications and Collaboration


Being able to communicate with others easily in an accurate and timely fashion is key to getting work done. Automation in this area can create great benefits for any organization. Again, you can often cut a process that took hours to only a few minutes, dramatically reducing expenses and improving the bottom line. 


Workforce Optimization


With the right software, one person can do the work of three. The cost savings can be dramatic. Then factor in deploying those extra employees in other areas of your company to help generate additional revenue. In today’s highly competitive economy, this can often be the difference between success and failure in business.


How to Calculate Your ROI 


To calculate your return on investment for a Mobile Solution like Listaso Inventory, you will need to estimate the savings in the following tasks: ​


Data Entry and Data-Entry Errors


There is no excuse to enter data into different systems two or three times in today’s world. There is also no excuse for data errors that result from manually entering data into systems again and again. Data entry should be done only once. Otherwise, you’re wasting time and introducing opportunities for human error. Often, those human errors can cost your company profits or even customers. 


Estimate the hours saved per month by reducing/eliminating multiple data entries. 


Receiving, Picking, Packing and Shipping


Manual inventory counts and searching for items in the warehouse can take a lot of time and resources for your distribution business, making your costs increase.


Handling this process with a Mobile Inventory Management System will generate great savings by cutting the time your warehouse reps spend picking, packing or making physical counts. 


To calculate the savings, consider the following operations, the time saved by each of them and the average cost per hour for labor:


• Scanning inventory into or out of the system

• Not physically searching for inventory 

• Automated shipping process 

• Eliminating routine manual inventory counts


Existing Revenue Stream


Often, revenue is lost due to stockouts, not being able to find the inventory at the moment you need it or having time-consuming manual processes in order fulfillment. When you start using Listaso Mobile Inventory, you’ll discover opportunities to increase revenue.


Bringing inventory and supplies in on time, tracking their every step and then quickly shipping them out ensures you are maximizing revenue opportunities. Take a moment to consider how Listaso can improve your current revenue streams in the following areas:


• Never having a stockout 

• Knowing exactly where inventory is located 

• Improved shipping and handling


Communications and Collaboration


Without the automation Listaso provides your business, you may be requesting information that takes days or even weeks to receive. Critical business decisions are often delayed and customer requests can go unanswered. 


Being able to communicate in a timely fashion is critical to running a business in today’s highly competitive world. Simple features like Listaso’s integration with QuickBooks or any other ERP simplify communication and collaboration in your warehouse.


Take a moment to identify potential cost savings your business might benefit from using Listaso Mobile Inventory Solution and estimate the number of hours saved monthly by: 


• Collecting data 

• Building reports 


Workforce Optimization


Optimizing their workforce is something most companies want to do, but they don’t have a solid solution to get the work done with fewer employees. 


With Listaso, these processes are done faster and can eliminate costly human error. Take a moment to consider what savings are possible due to workforce rearrangements.


In Conclusion


Investing in the best inventory-management solution can save you money and pay you back year after year. Listaso Inventory automates key warehouse tasks, allowing you to bring higher efficiency to your distribution business.


Calculating an accurate ROI will require a good understanding of the power of Listaso Inventory and how its robust features can impact your business. We highly recommend that you schedule a one-on-one free demo with one of our inventory consultants to see how we can improve your business processes. They will customize the demo to your specific business needs and greatly expand your understanding of how Listaso can help your business. 

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