Solid ROI: Avocet expects $4-million payback from business software investment
Avocet Hardware Ltd , one of the U.K.’s leading manufacturers of window, door, and merchant hardware, expects a $4 million-plus payback from its investment in business applications Epicor and Smart Software . The company expects these solutions to support business growth by helping to optimize its forecasting and demand management processes.
Avocet, part of the $12.8-billion MASCO Corporation , has been an Epicor customer since 2001. It added the Smart Software solution to its business applications portfolio this fall.
“Avocet has worked very hard over the last two years to ensure that we fully utilize our Epicor Enterprise Resource Planning [ERP] system,” says Gary Bennett, supply chain director for Avocet Hardware Ltd. “The addition of SmartForecasts not only delivers strong forecasting technology, but seamlessly supports all of our current processes.”
Integrated with Epicor Enterprise, SmartForecasts is a cross-industry solution for demand forecasting, demand planning, and inventory optimization that uses a patented technology for forecasting intermittent or “slow-moving” demand.
Smart Software executives claim this technology yields nearly 100-percent accurate estimates of inventory stocking requirements for any lead time and desired service level.
Epicor Enterprise is a comprehensive end-to-end suite of industry-specific solutions for global midmarket enterprises.
“Based on initial trials in which SmartForecasts was used to recommend optimal inventory stocking levels based on our service-level goals and lead times, we can target a one-year return-on-investment of approximately [U.S.] $1.6 million,” says Avocet’s Bennett. “In year two, we expect these savings to reach around [U.S.] $4 million. As Avocet continues its growth into new and existing markets, we realized the need to further enhance our forecasting technology. Together, Epicor and SmartForecasts will allow us to reduce inventory and improve cash flow while continuing to improve our service levels.”