Inventory management software ROI: the free calculator
How much does inventory management software earn? Calculate over 12 months the margin gained, the stock reduced and the time saved with Sway One.
Inventory management software pays off in three places: more margin, less dead stock and time given back to the team. The Sway One ROI calculator puts a figure on these three gains using your revenue, your gross margin and the time spent on stock.
The three gains of inventory management software
- Margin gained: fewer stock-outs on the products that sell, and fewer discounts that cost more than they bring in.
- Dead stock: less cash tied up on shelves.
- Time saved: fewer spreadsheets, exports and manual restock calculations.
Each lever is counted in euros, then the subscription is deducted.
Three scenarios over 12 months
The margin and stock rates come from the Sweet 1.4 benchmark, on four simulated shops. The pessimistic scenario uses the weakest vertical (sport), the average one uses the mean of the four, the optimistic one the best (furniture). The time saved remains an assumption: the benchmark does not measure it.
Example: a menswear shop with two locations, €1.7M in revenue, 44% margin and 12 hours a week spent on stock.
Cumulative net gain
Frequently asked questions
How much does inventory management software earn you?
For an independent shop with between €0.8M and €2.2M in revenue, the average scenario of the Sway One calculator gives between €20,000 and €63,000 of net gain in the first year, or 2.2 to 3.9 points of net margin.
How much do stock-outs cost?
Every missed sale is lost margin. On the Sweet 1.4 benchmark, the share of demand lost for lack of stock falls by 21 to 59% depending on the vertical, by recommending restocking before the stock-out.
How do you reduce slow-moving stock?
By spotting early the products that no longer sell and putting them back in the spotlight or transferring them to another shop. Every euro of stock removed frees up cash and saves about 25 cents a year in holding cost.
Is the calculation reliable?
It is an order of magnitude measured on simulated shops, and all the assumptions are shown below the calculator. In a demo, the calculation is redone on your real data.