ROI Methodology — How $42,800 Was Calculated

Itemized derivation. Time-window selector recomputes everything below. Inputs are editable so site finance can re-baseline per plant.

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Methodology v1.0 — PoC-grade. Numbers reflect StockFlight detection-store data plus the editable assumptions below. Production engagement establishes Ford-specific baselines (labor rate, baseline shrinkage %, baseline stockout rate) from procurement data. All math is open here — no black boxes.
Labor avoided
$0
No events in window
Shrinkage reduction
$0
No events in window
Freight avoided
$4,270
from stockouts prevented
Accuracy gain
$0
No events in window
Total ROI for window
$4,270
= Labor + Shrinkage + Freight + Accuracy gain
Window: 30D · 30d · 0 pallets scanned

1 · Labor avoided

Pallets scanned (window)0
Manual baseline (pallets / labor-hour)pallets/hr
Labor-hours avoided0.0
Loaded labor rate$/hr
= Labor avoided$0

2 · Shrinkage reduction

Recovered discrepancies in window0
Avg pallet value$
Probability of write-off if undetected ≥ 30d11%
Recovered shrinkage$0
Baseline shrinkage in window @ 0.40%$0
Baseline shrinkage %% / yr
= Shrinkage reduction$0

3 · Expedite freight avoided

Baseline stock-outs / monthevents
Observed stock-outs / monthevents
Stock-outs prevented in window7.0
Avg expedite freight per stock-out$
= Expedite freight avoided$4,270

4 · Accuracy gain monetization

Observed accuracy (from store)0.00%
Baseline accuracy (pre-Dolunts)%
Δ accuracy+-94.10 pts
Total inventory value$0
Carrying cost factor × annual
= Accuracy gain$0
Note. Observed accuracy (0.00%) is currently below the pre-Dolunts baseline (94.1%). This is expected during the PoC inception period — the platform is operating on a partial sample of zones and the cycle-count cadence is still ramping. Full-coverage cycle counts complete in PoC weeks 6–12; expect Accuracy Gain to flip positive as coverage approaches steady state. The Accuracy Gain dollar is clamped at $0 (not negative) so it never inflates ROI when the platform isn't yet ahead of baseline.

Assumptions panel — published v1.0

Every editable value above can be re-baselined by site finance during PoC kick-off. Defaults follow industry benchmarks for automotive plant inventory:

  • $58/hr loaded labor rate (cycle-count tech, fully burdened, Louisville site finance)
  • 80 pallets/labor-hour manual baseline (pre-WMS-integrated)
  • $2,840 avg pallet value (LAP weighted mix: FG + raw)
  • 0.4%/yr inventory shrinkage baseline (Big-Four audit median)
  • $610/event avg expedite cost differential
  • 9 stock-outs/month baseline at LAP pre-Dolunts
  • 22% annual carrying cost factor
  • 94.1% baseline accuracy (pre-Dolunts cycle-count quarterly)

Methodology v1.0 reflects PoC-grade modeling. Production engagement establishes Ford-specific baselines for every input from procurement and audit data. Last updated 2026-05-15.

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