COMMON COST JUSTIFICATIONSFor Automated Systems

THE INFOLIST SERIES

Cost Reduction

Fewer errors Fewer people handling data Eliminate waste related to inaccurate, obsolete, or overstocked

inventory Reduce inventory shrinkage Eliminate time wasted looking for information and/or inventory Improve the collections process Maximize cash discounts and reduce overlooked credits Reduce accounting and industry-specific consulting expenses Reduce staffing Minimize lost billings Improve cash flow (improve return on equity or reduce borrowing

costs) Improve quality and timeliness of financial reporting

Better Customer Service

Improve on-time delivery Improve customer information and communication Improve quality of information about customer order status Reduce the time to research a problem Improve customer history retention Reduce out-of-stock situations Reduce customer returns Increase client creditability

Attract New Customers

Offer new services or products Improve ability to market to mass niches Improve adeptness to quickly respond to unusual requests Improve the way prospects are tracked

Improve Employee Productivity and Employee Relations

Improve effectiveness of employee communication Reduce receiving and shipping labor Reduce secretarial pool Reduce accounting department size Grow without increasing employee number Improve professionalism

This information is being provided simply to give you a list of some common cost justification considerations for implementing new technology. No final conclusions about the best justification for your system should be reached without further review and consultation with a technology

advisor. If you have any questions or comments regarding any of the material herein, please contact Chaim Yudkowsky.

© Copyright 1996 by Chaim Yudkowsky, CPA 410-736-9875 cyudkowsky@byteofsuccess.com