Full transparency on how we estimate warehouse management system ROI. Our methodology, data sources, assumptions, and limitations.
Last reviewed . Savings model and assumptions rechecked.
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.
Our calculations draw from the following sources:
Labor Savings = Employees × Hourly Rate × 2,080 hrs/year × Efficiency Gain %Efficiency gain percentages vary by scenario:
Error Savings = Annual Orders × (Current Error Rate - Improved Rate) × Cost Per Error ($50)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.
Inventory Savings = Warehouse Sq Ft × $100/sqft × 25% Carrying Cost × Reduction %The $100/sqft 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.
Build Cost = $20,000 base + Sq Ft × $0.30 (cap $45,000) + Volume Tier ($10,000 from 5,000 orders/mo, $30,000 from 20,000, $80,000 from 100,000) + Employees × $150 (cap $30,000) + $8,000 per Integration + $10,000 per Real-Time Requirement, capped at $250,000The 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 cap matches the ceiling of the published build-cost ladder. Rollout time scales with the estimate, from 3 months at the low end of the single-site band to 7 months at the ladder ceiling, and payback is counted from project start. Actual quotes are scoped per project; the bands and rates behind this model are published on our pricing page.
Represents outcomes at the lower end of observed results. Appropriate for warehouses with complex operations or limited change management.
Represents the middle range of observed results. Most appropriate for standard warehouse operations with good implementation practices.
Represents best-observed outcomes. Appropriate only under ideal conditions with excellent implementation, strong team adoption, and significant room for improvement.
All results include a ±20% variability range to account for real-world differences. Even with this range, actual results may fall outside these projections.
For projections based on your specific warehouse operations, we recommend scheduling a consultation. Our team will:
Everything on this topic that lives elsewhere on the site.
80% fewer manual errors, 50% faster order processing
Distributor WMS case studyProject management at Rorix is top-notch. They deliver on time, stay responsive, and adapt to our needs. They don’t just stop when daily tasks are done, they keep refining lower-priority items and actively suggest improvements to better the system.