What is the source of benefits and return on investment from the implementation of Promax in our company?

22 Jun 09

Detailed below is an example of the anticipated ROI that can be achieved in the various impact areas.

Component Impact Area:  % of ROI Savings

• Prediction of promotional event ROI Denial of spending; reduction of spending for “bad” events:  40%
• Reduced deductions; clean invoicing and accounts receivable. Reduced paperwork handling, enquiries, and accounting staff:   30%
• Forecasting accuracy, prediction of promotion event spike volume and timing. Better prediction of promotional lift and baseline sales; lower finished goods inventory; less direct labour; higher customer service levels; higher sales:  20%
• Other business efficiencies. Reduced time spent reacting to problems; crisis meetings; digging for missing promotion information:   10%

Promax promotion optimisation technology will assist clients to reveal opportunities for the more effective application of trade spend budget. In those customers that have applied this approach to their business they have achieved gross profit improvements as much as 5%. The extent to which our clients can expect improvements of this magnitude will be driven by the decisions made by the business and profit targets may not be the sole objective for the business. Promax optimisation technology will allow clients to model alternative scenarios and construct a promotional strategy that is targeted at the business objectives.

That being said, the ROI from a Promax project of reasonable size should see the project investment returned inside a year from the “go live” milestone.