How to Calculate the ROI on HIPE Project Management
Why should you implement the HIPE project management module?
In many industrial organizations, project management still relies on a fragile combination of emails, shared files, disparate tools, and manual reminders.
The result: lost information, longer lead times, rework, internal tensions, and dissatisfied customers.
The promises made by project management software are often quantified as follows: “55% reduction in the time required to develop project specifications,” “25% reduction in project duration,” “45% increase in team capacity.” – Source: one of our partners: https://site.esko.com/en/lp/webcenter
Research widely confirms that project management information systems have a positive and significant impact on task planning and organization, progress tracking and project monitoring, coordination among stakeholders—sales representatives, sales managers, engineers/designers in the design office, production managers, prepress operators—and, finally, on the quality and speed of decision-making. Of course, these effects translate into improved performance in terms of meeting deadlines, staying within budget, and adhering to established specifications.
What are some typical improvements?
Simply put, a project management tool enables centralized document storage, a clear record of decisions, and shared visibility into the project’s status. This significantly reduces the time spent searching for, reconstructing, or clarifying information.
For example, structuring workflows—with statuses, automated follow-ups, and clear responsibilities—reduces wait times, minimizes unnecessary approval loops, and improves overall responsiveness. Furthermore, research on change management shows that organizational complexity is one of the main causes of longer lead times, far more so than technical complexity itself.
According to research conducted by Louis Raymond and François Bergeron among more than 100 small and medium-sized businesses, long-term benefits such as improved cross-team collaboration, reduced internal tensions, fewer customer errors, and enhanced credibility with customers are a largely underestimated source of value. These are all factors that are difficult to quantify precisely, yet they are essential to business performance.
The Packitoo Approach
With HIPE, the goal is not to produce a spectacular figure, but to measure the productivity gains achieved. There are two main factors used in the calculation:
Time saved on low-value tasks
- Document Search
- Proofreading and clarifying missing information
- Manual tracking
- Rework related to obsolete versions
- Added value through:
- Time saved per project
- The hourly cost of staff—sales representatives, sales managers, design department designers, production managers, and prepress graphic designers
Reduced design and production times
- Less unnecessary communication
- Greater visibility of statuses
- Faster decisions
- Indirect but critical effects:
- Highest customer satisfaction
- Reduced internal pressure, employee retention
- Ability to take on more projects without hiring
Use numbers as guidelines, not as rules
The Packitoo team recommends a scenario-based approach, inspired by real-world results but validated by actual measurements.
Sample scenarios
- Conservative estimate: A 10–15% reduction in time spent on administrative and coordination tasks.
- Median scenario: Gains of 20% to 30% when processes are partially structured but remain largely manual.
- Ambitious scenario: Gains of 35% or more in organizations that were initially highly disorganized or that use a combination of underperforming tools.
These assumptions are not presented as academic averages, but as starting points for a context-specific ROI calculation.
Data to be entered for calculating the ROI of project management with HIPE:
Company A
A medium-sized company in the corrugated packaging sector, located near Bordeaux, France. Projected revenue of approximately €10 million. Typically generates 15,000 quotes per year through its sales team and regularly participates in major packaging trade shows.
- Number of quote lines per year
- Average number of quote lines per sales proposal (to determine the number of quotes/sales proposals sent to customers)
- Conversion rate from quotes to orders
- Average cart value per order
- Gross margin (contribution)
- Time saved per week by sales representatives, sales administrators, design engineers, production managers, and prepress operators
- Number of weeks worked per year
- Average hourly cost of a sales representative, sales manager, design engineer, production manager, or prepress operator
- Sales representative, sales manager, design engineer, production manager, prepress operator
- Time saved by teams thanks to more efficient collaboration
Data to enter for the CRM HIPE ROI calculation:
Company A
A medium-sized company in the corrugated packaging sector, located near Bordeaux, France. Projected revenue of approximately €10 million. The company’s sales team typically generates 15,000 quotes per year, and it regularly participates in major packaging trade shows.
- Number of quote lines per year
- Average number of quote lines per sales proposal (to determine the number of quotes/sales proposals sent to customers)
- Average cart value per order
- Gross margin (contribution)
- Time spent by a sales representative or sales administrator preparing a quote
- Number of weeks worked per year
- Average hourly rate for a sales representative/sales administrator
- Number of sales representatives/sales administrators
- Estimated increase in conversion rates, thanks to faster and better-tracked responses
Detailed formulas for calculating the ROI of the HIPE project: :
Time saved on low-value-added tasks
Time saved = Weekly time saved by each team member × Number of members × Average hourly rate × Number of weeks worked per year
Impact of the ability to take on more projects without hiring
Impact on margin from additional capacity = Number of quotes × Quote-to-order conversion rate × Gross margin × Average order size × Time saved by teams (i.e., additional available capacity)
Data from Company A:
- 15,000 quote lines per year
- Average number of lines per quote (sales proposal): 1.92
- Quote-to-order conversion rate: 20%
- Average basket size: €3,500
- Gross margin (contribution): 55%
- 2 hours saved per week per sales representative / sales administrator / prepress operator / design engineer / production manager
- Number of team members: 11
- Hourly rate: €38/hour
- Number of weeks worked per year: 46
- Time saved, expressed as the estimated number of new quotes that can be processed (increased capacity): 10%
📈 Calculation:
- Time saved: 2 × 11 × 38 × 46 = $38,500
- Additional margin: ((15,000/1.92) × 20% × 10%) × 3,500 × 55% = $300,800
💰 Total for the Project Management module: €339,300 in annualized savings