enSights Blog

Your source for supply chain, technology and commerce best practices and industry trends.

Subscribe Newsletter

Search Blog

Don't Chase ROI!

 

close up of chalkboard with finance business graph

This is counter-intuitive to the way you’ve always done things. We understand, but trust us. Stop chasing ROI. Too often companies are getting hung up on the short term view of a project, thinking only in terms of what the hard dollar ROI is and how far along in the process you are.

  

We argue that you should be more focused on chasing competitive advantage rather than ROI. If you are gaining a competitive advantage, the ROI will naturally take care of itself. The issue with many supply chain projects is that they take a long time to fully develop. If the ROI on a WMS is going to be 18 months and that is all you are focused on, consider how it will impact your bottom line when customer expectations have changed in those 18 months and now the WMS upgrade that you championed doesn’t accomplish key company goals.

 

Being focused on building a competitive advantage rather than chasing ROI could be more expensive up front, but it will pay larger future dividends. Supply chain projects should all come back to differentiating yourself from your competitors by being more responsive to customer needs. As that happens, the ROI will take care of itself. These projects cannot be solely measured by bottom line dollars. They must be focused on discovering how your company can be more responsive to consumer demands. Having a strong ROI that doesn’t also return competitive advantage isn’t a strong win for your organization and you’ll soon be back at the drawing board trying to move the ball forward.

 

One example of how enVista helps companies increase their competitive advantage is helping make sure employees are properly trained in order to meet customer demand. As time windows continue to shrink, we will make sure employees are properly fitted with technology and process improvements to meet those demands.

 

Another example is enVista’s Best Ship Method solution which leverages complex shipping logic to: 1)  Rate shop multiple-modes and carriers between multiple origins and a ship to destination in terms of cost and transit time. 2)  Source inventory across a retail or distribution network to evaluate multiple permutations.

 

enVista uses custom routing logic determines best ship options to provide to the consumer at cart check out Our Best Ship Method solution provides retailers a real-time API call that applies complex sourcing logic to pick the right site (distribution center, warehouse, 3PL or physical store location) and the right number of item units from each site.

 

Remember, the tried and true philosophy of chasing ROI has inverted. Chase competitive advantage. If you are successful, the dollars will come. To read more about our best ship method solution, click here.

Your Comments :