Cost Savings Calculator
Calculate savings potential for fasteners by looking at activity costs.
Inital data
Current number of fasteners
100
150
200
250
300
350
400
450
500
550
600
650
700
750
800
850
900
950
1000
Rate of stock turns for fasteners
1
1.5
2
2.5
3
3.5
4
4.5
5
Expected reduction of parts in %
5
10
15
20
25
30
35
40
45
50
Activity cost
Yearly cost before reduction
Yearly cost after reduction
Purchasing
Typical activities related to Purchasing
Creation of purchasing order in system
Evaluation of purchasing proposals
Creation of requisition
Handling of order confirmation
Compilation of forecast/delivery plans
Update system on delivery note
Update system on invoice
0
5
10
15
20
25
30
35
40
45
50
55
60
65
70
75
80
85
90
95
100
75 000
52 500
Receiving
Typical activities related to Receiving
Control of consignment note
Internal transportation
Separation of items
Comparison of items with delivery note
Registration in system
Marking of goods or pallets
0
5
10
15
20
25
30
35
40
45
50
55
60
65
70
75
80
85
90
95
100
22 500
15 750
Quality control
Typical activities related to Quality control
Find item test plan in system / create it
Physical control
Creation of inspection report
0
5
10
15
20
25
30
35
40
45
50
55
60
65
70
75
80
85
90
95
100
15 000
10 500
Put on stock
Typical activities related to put on stock
Internal transportation to central stock location
Registration in system
0
5
10
15
20
25
30
35
40
45
50
55
60
65
70
75
80
85
90
95
100
22 500
15 750
Picking and preparation
Typical activities related to picking and preparation
Release items for production
Picking of items at central stock location
Internal transportation and stocking at decentralized stock location
Picking of items at decentralized stock location
Internal transportation and stocking at final location
Registration in system
0
5
10
15
20
25
30
35
40
45
50
55
60
65
70
75
80
85
90
95
100
30 000
21 000
Checking invoices/payments
Typical activities related to Checking invoices/payments
Check that the invoice is correctly addressed
Verify that it matches the relevant purchase order
Check that all relevant supplier information is available
Ensure that the invoice totals are correct
Issue payment in system
0
5
10
15
20
25
30
35
40
45
50
55
60
65
70
75
80
85
90
95
100
45 000
31 500
Yearly stocktaking
Typical activities related to Yearly stocktaking
Preparation of system output and counting lists
Physical counting and recording of results
Registration in system
Investigate balances and deviation
Make corrections in system
0
5
10
15
20
25
30
35
40
45
50
55
60
65
70
75
80
85
90
95
100
22 500
15 750
Yearly cost before reduction
Yearly cost after reduction
Reset
232 500
162 750
Result
Yearly cost saving
69 750