Formula: Q1 * (Q4 + Q5) * 25 %

Based on the assumption that optimizing your processes with HIPE reduces the time spent preparing your quotes by 25%. This time reduction is a realistic assumption based on improved workflows, automation of repetitive tasks, and better information management. By reducing the time spent, not only are labor costs reduced, but employees can focus on higher value-added activities, such as prospecting or customer management.

A 25% reduction in time is a conservative estimate. Companies that integrate management and automation solutions like HIPE see even higher productivity gains on average, especially if processes were previously manual or poorly integrated. This percentage makes it possible to announce reasonable results while demonstrating a significant improvement.

Sources:

25% reduction in project management time:
A McKinsey study showed that the use of project management tools can increase productivity by 20-30%. Our estimate of 25% is therefore conservative and realistic.

Formula: Q1 * Q6 * Q7 * 50 €

Measures the potential savings achieved by reducing critical errors in your projects. A critical error is defined as forgetting a manufacturing step in the quote creation or any other example that would have a significant impact on the price offer submitted or to be submitted to the customer. 

Our model defines the cost of an identified error for a recorded order at €50 for the company. This estimate takes into account not only the time lost in the event of a modification, the impact on the operating margin, but also the potential impact on customer satisfaction and project delays.

Assigning a cost of €50 per error is a conservative estimate. In some industries, the costs associated with errors can be much higher, especially if the errors lead to lost orders or customer compensation. Using a fixed amount allows for a simple and understandable assessment of possible savings.

Beyond the "critical" errors, the HIPE digital quoting tool's algorithm allows for all manufacturing scenarios, as well as supply chain management, with dedicated (custom) or stocked sheets or plates with pre-defined formats, including formatting or cutting mechanics during manufacturing. And this is done by comparing multi-supplier prices and all the associated constraints (minimum order in m² or t, pallet height, etc.). As highlighted by some of our customers, HIPE is an extremely powerful "methods" manufacturing tool that exceeds the capacity of a human expert. These savings make it possible to significantly improve the operating margin generated or to improve sales by offering more economical offers to the customer.

Sources:

50% reduction in blocking problems:
According to the Project Management Institute, organizations that use standardized project management practices have 33% fewer failing projects. Our estimate of a 50% reduction in critical problems through better qualification and collaboration is therefore plausible in the market context we know (many more requests year after year for a virtually unchanged turnover volume).

Average cost of errors and delays:
According to a KPMG study, the average cost of a project failure is estimated at 12% of the project budget. Our assumption of a 10% cost overrun for problematic projects is therefore conservative.

Formula: Q1 * Q2 * Q5 * 110%

Designed to estimate the increase in sales due to process optimization via HIPE. Through the instant delivery of quotes by the sales teams, or even via the customer interface, it is reasonable to expect an increase in the quote/order conversion rate and therefore in the order volume.

It's worth noting that some studies indicate that 50% of orders between companies are placed with the supplier who is the most responsive during the quotation phase.

Furthermore, considering that 50% of quotations do not convert into orders, and half of these are automated by HIPE, then 25% of the time spent by sales representatives exchanging information between clients and their support services could be dedicated to developing existing client relationships or acquiring new prospects.

Finally, through quotation automation, sales representatives feel more empowered to test "options" (cardboard choices, printing options, finishes, more quantity alternatives, etc.). In other words, without HIPE, sales representatives limit the number of versions and alternatives they request for quotation. Some companies using HIPE have seen a 75% increase in calculations and configurations performed in the first year of using HIPE Instant Quotation.

Thus, this model incorporates a 10% increase in sales for calculating the return on investment of the HIPE solution.

It should be noted that some sales representatives have doubled (+100%) their turnover in the first year of using HIPE Instant Quotation.

Source:

CEB & Google White Paper, The Digital Evolution in B2B Marketing: 35 to 50% of B2B sales are made by the supplier who responds to customers first. 

Formula: ((Result 1 + Result 2 + (Result 3 * (Q3/100))) * 3) – (HIPE Cost over 3 years / 3)

Estimates the return on investment of the HIPE Instant Quotation plan over a 3-year period, taking into account the savings and additional sales gains, and then comparing them to the total cost of the solution for 3 years.

In this particular case, the cost is estimated at 67,120€ over 3 years for 10 users.

The amount of 67,120€ is a total cost that includes initial installation, configuration and training fees, as well as subscription costs for 10 users.

For easier understanding, we are presenting an annualized ROI.