Content thumbnail 3PL Guide to Calculating ROI for Warehouse Management System Software
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The 4 Categories to Calculate ROI 4. Billing and Invoicing Tracking each task related to each order and transaction is how your 3PL makes money, so ensuring your billing process is smooth and error-free is essential for your profitability. Billing automation saves time as well as increases revenues based on automating capture of billable activities. Billing automation not only reduces errors and shortens billing cycles, and it can be enhanced by using mobile scanning to capture all billable events as they occur, leaving no money on the table. One customer captured $15,000 in previously missed recurring revenue with WMS billing automation in the first couple months of using the system. Furthermore, some WMS solutions integrate with accounting platforms like QuickBooks, which make invoice generation a quick and effortless process. Once you set up charge amounts for different actions and recurring storage charges like picking, packing, shipping, storage, etc., the software automatically tallies all charges for each customer during the billing period. This means that no charges fly under the radar as often happens with manual processes, so you receive the maximum amount of income from each of your customers. At the end of the billing period, the software aggregates all the charges into an easy-to-read invoice, which you can then export to QuickBooks or other system at the click of a button to consolidate into a monthly statement to deliver to your customers. Without a WMS, adding up all the charges for a billing period can take days—even a week or more—which lengthens the billing cycle and extends the amount of time before the cash hits your bank. With a WMS with automated billing, you get paid quicker and improve profitability because of reduced errors or missed billable events. Questions to ask: • How many hours a day/month are spent on billing and invoicing? • How many hours will billing and invoicing take once implementing a WMS? • What is your monthly billing total before implementing a WMS? • What percentage of billable activities do you estimate are missed using manual tracking? Billing Savings = Hours Saved Monthly x Average Hourly Warehouse Worker Wage extensiv.com | 833.983.6748 11

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