Leading international automated logistics systems supplier Logistex has developed its own Excel-based program to help clients assess the long-term financial viability of a variety of logistics automation schemes. The process compares various investment scenarios over a ten-year period – such as a proposed automated system and an alternative course of action – and calculates their respective Return on Investment (ROI) or payback periods in months.
Key financial measures taken into account include capital investment and utilisation, stocks, revenue and cash flow, operational costs, staffing levels, property implications, interest rates and inflation. The report gives a detailed year-by-year presentation of all the key factors both in tabular form and as graphs, providing a clear visual presentation of all the data available.
Keith Edmonds, Logistex Head of Sales, explained further: “Today more than ever logistics executives need to be able to justify any new expenditure with a convincing financial and business strategy. While there are a lot of ROI calculation software programs on the market, our extensive experience of every aspect of the supply chain and automated handling systems means we will already have thoroughly investigated the viability and suitability of a proposed project before the ROI analysis.”
“Logistex is a 4th Party Integrator with no restrictive manufacturing ties, which means we are free to specify and integrate best-in-class products and equipment from anywhere in the world that most effectively meet the client’s needs.
As a result, the final proposal selected by the client for executive approval will represent a practical and productive solution – using the most suitable and cost-effective systems and equipment available – and supported by a detailed, convincing and factual financial analysis.”
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