ROI Calculation Methodology

1. Overview

Our ROI calculator provides preliminary estimates for planning and budgeting purposes. It is not a guarantee of results. The calculator uses industry benchmarks, published research, and data from Rorix Technologies implementations to generate projections based on your inputs.

2. Data Sources

Our calculations draw from the following sources:

• Industry Research: Published benchmarks from warehouse management industry reports including studies by supply chain research organizations and technology analyst firms (2020 to 2025).
• Client Implementation Data: Anonymized and aggregated performance data from Rorix Technologies WMS implementations. Sample sizes are limited and may not represent all industries or warehouse types.
• Standard Industry Formulas: Commonly used warehouse operations metrics and formulas (labor cost per hour, carrying cost percentages, error cost per order) sourced from supply chain management literature.

3. Calculation Methodology

Every constant in this section is read from the module the calculator itself runs on, so the published method and the tool cannot disagree.

3.1 Labor Efficiency Savings

Only 65% of warehouse hours count as addressable: picking, putaway, packing, receiving and counting. Supervision, yard work, maintenance and admin continue largely unchanged. Of the gain on those hours, only the scenario’s realization share is counted as cash, because an hour saved is usually redeployed into throughput rather than removed from payroll.

• Conservative (Lower End): 25% efficiency gain (range 20-30%), 35% of it realized as cash
• Typical Range: 35% efficiency gain (range 30-40%), 50% of it realized as cash
• Optimistic (Upper End): 45% efficiency gain (range 40-50%), 65% of it realized as cash

3.2 Error Reduction Savings

The improved rate is the scenario’s target, floored at a 90% cut of the current rate, so the model never credits a WMS with eliminating error entirely. The $50 cost per error is an industry average that includes re-shipping, returns processing, customer service, and lost goodwill; actual costs vary by industry from $10 to $200+ per error.

3.3 Inventory Carrying Cost Reduction

The $100 per square foot inventory value is a rough estimate. The 25% annual carrying cost rate is a standard industry figure that includes storage, insurance, obsolescence, and capital costs.

3.4 Build Cost, Run Cost and Payback

Headline savings are reported net of an annual run cost of 18% of the build (hosting, support, licenses and continued engineering). Rollout takes 3 months at the low end, then 4 months from $45,000, 5 months from $80,000, 6 months from $150,000, 7 months from $200,000, and payback is counted from project start, so it includes the rollout. The model is calibrated against our published WMS build bands: typical single-site profiles land inside the $30,000 to $64,000 single-site band, multi-site and RFID-scale profiles inside $80,000 to $180,000+, and the estimate is capped at $250,000; larger programs are scoped individually against the upper bands on our pricing page, where every band and rate behind this model is published.

4. Scenario Definitions

5. Variability & Limitations

All results include a ±20% variability range to account for real-world differences. Even with this range, actual results may fall outside these projections.

Key Variables Not Accounted For

• Current warehouse layout and organization
• Team experience and training speed
• Change management effectiveness
• Integration complexity with existing systems
• Product mix and handling requirements
• Seasonal variations in order volume
• Industry-specific regulatory requirements

6. Get an Accurate Assessment

For projections based on your specific warehouse operations, we recommend scheduling a consultation. Our team will:

• Analyze your current processes and pain points
• Assess your specific warehouse layout and workflows
• Provide custom ROI projections based on your actual data
• Recommend an implementation approach sized to your operation