Investing To Improve Your Business: Calculating Your ROI and TCO
As a supply chain leader, you know why it’s important to invest in your operations. However your request alone might not be enough to get your CFO to budge. Often, a big challenge supply chain professionals face is bridging the gap between investing in tools and getting approval for the investment.
At the end of the day, the language which purse string holders will respond to is generally the return on investment (ROI) and total cost of ownership (TCO). In short, what’s in it for the business. This is not to say that an investment will be made in a numbers vacuum and that’s all that matters. In our experience, clients are most successful when they strike a balance between hard numbers and conceptual benefits. A combination of data points and descriptive narrative to appeal to decision makers that will decide whether or not to greenlight your project.