BUSINESS CASE
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Business case

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With any improvement initiative involving expenditure, there is always a requirement for business case justification. Considering warehouse operations, be it a new fit out, new building, new warehouse systems or systems upgrade and relocation; Warehouse Focus will assist the business to develop a financial forecasting model. 

Business case

The standard financial forecast model used by Warehouse Focus includes, but is not limited to:
  • Operator salaries and wages
  • Productivity differentials between solutions
  • Capital costs
  • Capital cost depreciation; prime cost, diminishing balance with residual costs
  • Operator salaries and wages
  • Productivity differentials between solutions
  • Capital costs
  • Capital cost depreciation; prime cost, diminishing balance with residual costs
  • Support costs
  • Inflationary and deflationary factors
  • MHE costs
  • Revenue offsets
  • Growth factors
  • Any other influential factor
  • Support costs
  • Inflationary and deflationary factors
  • MHE costs
  • Revenue offsets
  • Growth factors
  • Any other influential factor
Warehouse in Melbourne with shelves of products

Investment feasibility

The model serves to illustrate the return differential between solutions, the payback period, the return on investment across differing time horizons and Net Present Value. The commercial aspect of the initiative is presented so that a fully informed decision can be made concerning investment feasibility.
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