Return on Investment is a core business concept that requires a company to consider quantifiable and non-quantifiable returns. When it comes to determining the ROI of dock scheduling software, it’s no different.
The harder-to-quantify benefits of dock scheduling software include: improved operating efficiency, employee satisfaction, better risk management, and becoming a ‘shipper of choice’ for carriers. Although there’s value in all these things, it’s still difficult to translate them into measurable dollar savings.
Since most companies will not sign off on new technology investments without a clear understanding of ROI, it’s necessary to identify other, more tangible benefits companies can ‘take to the bank.’ Fortunately, easier-to-quantify benefits and savings come from dock scheduling software, too.
Calculating the hard-dollar savings of dock scheduling software
Dock scheduling software takes your warehouse’s scheduling process online. It’s easy to understand the unnecessary costs and time it eliminates when considering the volume of phone calls and emails that go into the process. Without technology, warehouses need a team to perform time consuming tasks such as: answering calls, responding to emails, managing spreadsheets, updating & communicating schedules, providing driver instructions, and checking in drivers.
Facilities without a dock scheduling solution also struggle to plan their labor resources. Without a clear view of the work to be done and when trucks will be arriving, teams are usually over or under-prepared for the load.
Finally, few costs illustrate the value of dock scheduling software better than eliminating detention fees. It can vary by facility, but carriers report that 12% of loads experience excess detention time (meaning a carrier waits two or more hours to be loaded or unloaded). Giving carriers the ability to set and modify appointment times easily is one of the best ways to eliminate detention costs. Facilities operating with dock scheduling technology reduce detention occurrences and overall detention time. With detention fees averaging over $60/hour, the opportunity for savings is significant.
Quantifying the ROI of dock scheduling software
A typical warehouse saves $1,150 per month by eliminating detention, and the amount is much greater for larger facilities. More importantly, the total scheduling-related cost savings from technology equate to $57,000 annually on average, with everything considered.
A mix of quantifiable and non-quantifiable savings justifies the ROI of dock scheduling software. From reduced labor expenses, unnecessary overtime, and detention fees to happier employees, customers, and carriers, the technology offers an easy-to-calculate and positive ROI for warehouses of any size.
If you are interested in finding a dock scheduling software for your warehouse, learn more about Opendock at opendock.com.