Impact Management Savings Calculator
The savings calculator has four areas of opportunity identified
- Inventory turns
- Labor as a percentage of sales
- Overtime as a percentage of sales
- Scrap as a percentage of sales
Enter the annnual sales dollar for your company or operational unit.
Enter your cost of goods sold as a percentage of annual sales.
In each category of savings, there is a savings opportunity for each incremental improvement in this sample worksheet. For instance, your company has sales of $5,000,000 and an annual cost of goods sold of 65% and you are at 5 inventory turns per year.
If you increase your turns from 5 to 10 there would be an incremental savings of $325,000.
If you decrease labor costs from 15% of sales to 12% of sales, the incremental savings would be $150,000
For opportunities more closely aligned with your own situation, please contact Impact Management and we will tailor one specifically for you.