$1.4M investment, 14-month payback, $3.8M NPV over 3 years.
Estimated annual margin erosion from stockouts, expedite fees, and excess safety stock caused by poor visibility.
| Line Item | Year 1 | Ongoing |
|---|---|---|
| Implementation Cost | -$1,400,000 | — |
| Annual License | -$180,000 | -$180,000 |
| FTE Savings (2.5 FTE redeployed) | +$200,000 | +$200,000 |
| Stockout Reduction | +$420,000 | +$420,000 |
| Expedite Fee Savings | +$240,000 | +$240,000 |
| Safety Stock Release | +$140,000 | +$140,000 |
| Year 1 Net Benefit | $820,000 |
Four vendors evaluated on capability maturity and total cost of ownership.
Rebuttal: Each quarter of delay adds $222K in preventable losses. Waiting for a "better time" costs more than acting now.
Rebuttal: The 2022 pilot lacked carrier API integration. TrackFlow's pre-built connectors solve the data gap that killed the last attempt.
Rebuttal: TrackFlow is vendor-managed integration. IT effort capped at 40 hours across all three distribution centers.
| Budget Approvals | CFO |
| Scope Changes | Steering Committee |
| Go/No-Go Gates | VP Supply Chain |
| Vendor Management | CTO |
| Risk | Likelihood | Impact | Mitigation |
|---|---|---|---|
| Carrier API Adoption | Medium | High | Manual fallback process for non-API carriers |
| Data Quality Issues | Medium | Medium | 4-week data discovery sprint before DC-1 go-live |
| Change Management | High | Medium | Embedded change lead, DC manager buy-in secured |
| IT Implementation Delay | Low | High | Vendor-managed integration, fixed timeline SLA |
| Cost Overrun | Low | High | Fixed-fee contract for Phase 1, 10% contingency |
Each quarter of delay costs $222K in preventable losses.