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Total Economic Impact
Cost Savings And Business Benefits Enabled By Alpega TMS
A FORRESTER TOTAL ECONOMIC IMPACT STUDY COMMISSIONED BY Alpega, August 2025
Total Economic Impact
A FORRESTER TOTAL ECONOMIC IMPACT STUDY COMMISSIONED BY Alpega, August 2025
In today’s volatile and complex supply chain environment, organizations face growing pressures to reduce transportation costs, deliver shipments on time, and provide end-to-end visibility to their customers. A transportation management system (TMS) is an essential tool for organizations to overcome these challenges and optimize, manage, and streamline their logistics and transportation operations. A comprehensive TMS can provide advantages for businesses of all sizes by supporting data-driven decision making, enhancing scalability, and increasing competitive advantage.
Alpega is a cloud-based TMS designed to optimize and streamline supply chain operations by helping businesses manage and automate their end-to-end transportation processes, from planning and execution to reporting. Alpega provides real-time visibility into supply chain operations with a modular, flexible approach that is suitable for businesses of all sizes.
Alpega commissioned Forrester Consulting to conduct a Total Economic Impact™ (TEI) study and examine the potential return on investment (ROI) enterprises may realize by deploying Alpega TMS.1 The purpose of this study is to provide readers with a framework to evaluate the potential financial impact of TMS on their organizations.
To better understand the benefits, costs, and risks associated with this investment, Forrester interviewed a decision-maker who has experience using Alpega TMS and Smart Booking, to optimize dock scheduling in warehouses, at their organization. This organization is in the consumer goods industry, headquartered in the UK; exporting to over 85 countries, with an annual revenue of over €430m. Forrester used this experience to project a three-year financial analysis.
The interviewee said that prior to using Alpega TMS, their organization relied on legacy solutions for its logistics operations. However, this approach resulted in challenges including inconsistent manual processes, a lack of coordination and standardization, ineffective tracking mechanisms, and inadequate overall control and visibility, which made real-time reporting difficult.
After the investment in Alpega TMS, the interviewee’s organization improved freight management efficiency with the solution’s automation capabilities, improved freight optimization with savings in shipping transatlantic containers, and increased savings in reporting time and overflow storage fees.
Quantified benefits. Three-year, risk-adjusted present value (PV) quantified benefits for the interviewee’s organization include:
Improved freight management efficiency of €84,000. Alpega provides seamless communication for the interviewee’s organization, which increases visibility and enables team members to collaborate in real time with their partners. The platform’s automation also efficiently handles export documentation. These features lead to time savings and, in turn, improved efficiency.
Reporting savings amounting to €89,000. Alpega TMS provides the interviewee’s organization with a unified view of transportation logistics via a detailed dashboard, which increases team member visibility and helps them improve performance. By adopting Alpega TMS, teams can generate reports with the click of a button and have the ability to track, monitor, and download data about transport orders or product volume shipped in a specific time period.
Improved freight optimization worth €164,000. Alpega TMS’s flexing capabilities enable the interviewee’s organization to reallocate freight between different carriers and take advantage of spot rates when it is financially beneficial. Flexing also means being flexible about shipping dates, times, and shipment sizes to optimize shipping costs and maximize savings.
Saved overflow storage fees of €32,000. Alpega provides the interviewee’s organization with control over its overflow storage. Prior to the Alpega investment, the interviewee’s organization was unable to thoroughly track what was shipped and what remained in the warehouse, which resulted in overflow storage fees. The increased visibility helps with inventory planning and forecasting, thus avoiding overflow penalties.
Unquantified benefits. Benefits that are not quantified for this study include:
Improved ease of compliance. By automating, centralizing, streamlining, and generating reports, Alpega TMS supports the interviewee’s organization in being compliant internally and with regulatory authorities, making audits easier.
Enhanced relationships with partners. By replacing manual communication and back-and forth emails, Alpega TMS improves the relationship between the interviewee’s organization and its partners, avoiding frustrations and inaccuracies.
Improved decision-making from better visibility and tracking. With the use of Alpega TMS, the interviewee’s organization has a real-time, granular view of the business, whether it be the number of transport orders, the volume shipped, the status of the shipment, or the financial targets, facilitated by standardized processes across sites and regions.
Costs. Three-year, risk-adjusted PV costs for the interviewee’s organization include:
Subscription costs of €110,000. Alpega charges an annual subscription based on the number of transport orders. The interviewee’s organization spends €25,000 in Year 1, which increases to €45,000 in Year 2 and €60,000 in Year 3.
Implementation costs of €37,000. Implementation costs reflect the internal effort required to integrate and deploy Alpega by the interviewee’s organization. Implementation lasts four months with different roles involved over this period.
The financial analysis that is based on the interview found that the decision-maker’s organization experiences benefits of €368,000 over three years versus costs of €147,000, adding up to a net present value (NPV) of €221,000 and an ROI of 150%.
Return on investment (ROI)
Benefits PV
Net present value (NPV)
Payback
Forrester interviewed a decision-maker who has experience using Alpega TMS at their organization. Their organization has the following characteristics:
It operates in the consumer goods industry, has annual revenue of more than €430 million and employs 380 people worldwide.
It is headquartered in the UK with a focus on exporting goods to more than 85 countries, with the US being its main market.
It has been using Alpega TMS since 2022 for road and ocean transport, as well as the Smart Booking add-on to optimize dock scheduling in warehouses.
Before adopting Alpega, the interviewee’s organization relied on legacy solutions to communicate with their transport management partners. The interviewee noted how their organization struggled with challenges, including:
Inconsistent manual processes in transportation management. Communication with transport carriers and warehouses was manual and siloed and relied on email with no overarching view of the business. The process was time-consuming and highly prone to errors and inefficiencies. Data redundancy, duplication, and manual entry across multiple systems increased the likelihood of errors.
Lack of coordination and standardization. The interviewee’s organization managed multiple manufacturing sites across Europe and the US. These production sites had no standardized processes, and it was difficult to coordinate and create a holistic approach to manufacturing and logistics.
Ineffective tracking mechanisms. As the interviewee’s organization had no real-time visibility into warehouse capacity and shipment progress, tracking was ineffective. This resulted in scheduling conflicts at the warehouse and delays in offloading the merchandise.
Lack of control and visibility. Before adopting Alpega TMS, the interviewee’s organization lacked real-time data into shipments and logistics, especially during critical periods when financial guidance was crucial. As a result, the organization needed to improve its financial planning and reporting to enhance accuracy and visibility.
The interviewee’s organization progressively deployed Alpega TMS and the Smart Booking add-on, starting with a proof of concept at the least complex warehouse before expanding to other warehouses.
The organization then deployed Alpega TMS to its transport providers — a more difficult endeavor since it had between 25 and 30 transport providers.
The third implementation step was with key partners to reduce email traffic by moving to an electronic data interchange communication method.
| Ref. | Benefit | Year 1 | Year 2 | Year 3 | Total | Present Value |
|---|---|---|---|---|---|---|
| Atr | Improved freight management efficiency | €19,440 | €35,640 | €48,600 | €103,680 | €83,641 |
| Btr | Reporting savings | €35,802 | €35,802 | €35,802 | €107,406 | €89,034 |
| Ctr | Improved freight optimization | €24,300 | €74,250 | €106,920 | €205,470 | €163,785 |
| Dtr | Savings in overflow storage fees | €9,720 | €12,960 | €16,200 | €38,880 | €31,718 |
| Total benefits (risk-adjusted) | €89,262 | €158,652 | €207,522 | €455,436 | €368,178 |
Evidence and data. The interviewee mentioned that communication with their partners, transport carriers, and warehouses was time-consuming, siloed, and conducted manually via email. The back-and-forth communication was also prone to errors and inefficiencies. The interviewee said, “There were lots of frustrations on both sides, from warehouse transport failures to how they didn’t have the right references when they got to sites, which was causing frustrations in the process.”
With the adoption of Alpega TMS, the interviewee’s organization could collaborate with its partners in real time, have greater visibility into its operations, and automate export documentation, leading to improved efficiency and increased time savings.
Modeling and assumptions. Based on the interview, Forrester assumes the following:
The organization handles 6,000 transport orders in Year 1, 11,000 transport orders in Year 2, and 15,000 transport orders in Year 3.
Prior to Alpega, the interviewee’s organization spent 15 minutes per transport order on manual communication with its partners and 5 minutes per transport order on export documentation. With Alpega’s TMS automation capabilities, it saves 80% of that time.
Forrester assumes a 50% productivity recapture rate, since employees typically do not repurpose all time gains into work activity.
Risks. Forrester recognizes that the degree to which an organization may realize this benefit will vary based on the size of the organization, the number of transport orders, and the salary for a logistics manager (depending on the geographical location).
Results. To account for these risks, Forrester adjusted this benefit downward by 10%, yielding a three-year, risk-adjusted total PV (discounted at 10%) of €84,000.
Time saved with Alpega in freight management
| Ref. | Metric | Source | Year 1 | Year 2 | Year 3 | |
|---|---|---|---|---|---|---|
| A1 | Transport orders | Interview | 6,000 | 11,000 | 15,000 | |
| A2 | Manual communication time per order before Alpega (minutes) | Interview | 15 | 15 | 15 | |
| A3 | Time handling export documentation per order before Alpega (minutes) | Interview | 5 | 5 | 5 | |
| A4 | Percentage time saved with Alpega | Interview | 80% | 80% | 80% | |
| A5 | Fully burdened hourly rate for a logistics manager | TEI methodology | €27 | €27 | €27 | |
| A6 | Productivity recapture* | TEI methodology | 50% | 50% | 50% | |
| At | Improved freight management efficiency | A1*(A2+A3)/60*A4*A5*A6 | €21,600 | €39,600 | €54,000 | |
| Risk adjustment | ↓10% | |||||
| Atr | Improved freight management efficiency (risk-adjusted) | €19,440 | €35,640 | €48,600 | ||
| Three-year total: €103,680 | Three-year present value: €83,641 | |||||
| * Forrester assumes a 50% productivity recapture rate, to account for the fact that employees typically do not repurpose all time gains into work activity. | ||||||
Evidence and data. Before adopting Alpega, the interviewees’ organization was not creating reports about its transport management. There was no unified view, no dashboard, and no visibility to drive improved performance. The interviewee said, “If our organization were to do reporting with our previous tools, we would spend 2 hours on a weekly basis per region.”
After adopting Alpega TMS, the interviewee noted that their organization could complete reporting with the click of a button, with the possibility to track, monitor, and download data for transport orders or shipped product volume in a specific time period.
Modeling and assumptions. Based on the interview, Forrester assumes the following:
Reporting with previous tools took the interviewee’s organization 2 hours per region weekly. With Alpega implemented in 15 regions, this results in significant time savings.
The fully burdened hourly rate for a logistics director is €51.
Risks. Forrester recognizes that the degree to which an organization may realize this benefit will vary depending on the time previously spent on reporting as well the number of regions or sites where an organization deploys Alpega TMS.
Results. To account for these risks, Forrester adjusted this benefit downward by 10%, yielding a three-year, risk-adjusted total PV (discounted at 10%) of €89,000.
Time spent on manual reporting per region before Alpega
| Ref. | Metric | Source | Year 1 | Year 2 | Year 3 | |
|---|---|---|---|---|---|---|
| B1 | Weekly reporting time per region (hours) | Interview | 2 | 2 | 2 | |
| B2 | Fully burdened hourly rate for a logistics director | TEI methodology | €51 | €51 | €51 | |
| B3 | Regions | Interview | 15 | 15 | 15 | |
| B4 | Productivity recapture rate | TEI methodology | 50% | 50% | 50% | |
| Bt | Reporting savings | B1*52*B2*B3*B4 | €39,780 | €39,780 | €39,780 | |
| Risk adjustment | ↓10% | |||||
| Btr | Reporting savings (risk-adjusted) | €35,802 | €35,802 | €35,802 | ||
| Three-year total: €107,406 | Three-year present value: €89,034 | |||||
Evidence and data. The interviewee stated, “We could attribute probably €115,000 to Alpega in flexing between different couriers.” Here, “flexing” refers to the ability to reallocate freight between different carriers and take advantage of spot rates whenever it is financially beneficial. The interviewee’s organization saw a significant improvement in freight optimization due to Alpega’s enhanced visibility into historical shipping data and the current order book. By providing real-time insights into past performance and upcoming orders, Alpega enabled better-informed decisions that optimized shipping costs and overall operational efficiency.
In addition to benefiting from favorable spot rates, flexing also involves being flexible about shipping dates, times, and shipment sizes. By adjusting these factors, the interviewee’s organization optimized shipping costs and maximized savings. Flexibility in shipment scheduling and load sizes allowed the interviewee’s organization to align its operations with the most cost-effective options. One important aspect of this strategy is ensuring a full container load (FCL), which offers several advantages. When a shipment fills an entire container, the cost per unit is typically lower. This leads to more predictable pricing, making it easier to forecast transportation expenses accurately. Moreover, FCL shipments contribute to sustainability. By fully utilizing container capacity, the interviewee’s organization reduced the number of trips required to move goods, leading to fewer containers being shipped overall. The result was a more efficient use of resources and lower greenhouse gas emissions.
By leveraging flexibility in shipping schedules and ensuring container load optimization, the interviewee’s organization not only achieved cost savings but also contributed to a more sustainable and efficient supply chain.
Modeling and assumptions. Based on the interview, Forrester assumes the following:
The interviewee’s organization ships 2,700 transatlantic containers in Year 1, 3,300 in Year 2, and 3,600 in Year 3.
The percentage of containers the organization optimizes with flexing increases over time, with 10% of containers optimized in Year 1, 25% in Year 2, and 33% in Year 3.
The savings in freight costs attributed to Alpega are 5%. It is important to note that this analysis focuses solely on the enhanced visibility from the Alpega platform, as the interviewee’s organization does not use Alpega’s automated freight procurement solution.
Risks. Forrester recognizes that the degree to which an organization may realize this benefit will vary depending on the number of transatlantic containers it ships, the percentage it optimizes with flexing, and the freight cost per container, which has shown volatility over the past few years.
Results. To account for these risks, Forrester adjusted this benefit downward by 10%, yielding a three-year, risk-adjusted total PV (discounted at 10%) of €164,000.
| Ref. | Metric | Source | Year 1 | Year 2 | Year 3 | |
|---|---|---|---|---|---|---|
| C1 | Number of transatlantic containers | Interview | 2,700 | 3,300 | 3,600 | |
| C2 | Percentage optimized with flexing | Interview | 10% | 25% | 33% | |
| C3 | Savings attributed to Alpega | Interview | 5% | 5% | 5% | |
| C4 | Freight cost per container | Company | €2,000 | €2,000 | €2,000 | |
| Ct | Improved freight optimization | C1*C2*C3*C4 | €27,000 | €82,500 | €118,800 | |
| Risk adjustment | ↓10% | |||||
| Ctr | Improved freight optimization (risk-adjusted) | €24,300 | €74,250 | €106,920 | ||
| Three-year total: €205,470 | Three-year present value: €163,785 | |||||
Evidence and data. The interviewee declared that the Smart Booking add-on helped his organization control its overflow storage over time. Prior to using this feature, the interviewee’s organization was unable to track what it shipped and what remained in the warehouse, which resulted in overflow storage fees (charged when the inventory exceeded the allocated storage space). The visibility Alpega provided helped the interviewee’s organization with its inventory planning and forecasting.
Modeling and assumptions. Based on the interview, Forrester assumes the following:
The overflow storage expenditure totals €72,000 in Year 1, Year 2, and Year 3.
The attribution to Alpega TMS in avoided overflow storage fees is 15% for Year 1, 20% for Year 2, and 25% for Year 3. The attribution to Alpega increases over time as visibility into shipments based on production improves.
Risks. Forrester recognizes that the degree to which an organization may realize this benefit will vary depending on the overflow storage expenditure and the attribution to Alpega for overflow storage fee savings.
Results. To account for these risks, Forrester adjusted this benefit downward by 10%, yielding a three-year, risk-adjusted total PV (discounted at 10%) of €32,000.
| Ref. | Metric | Source | Year 1 | Year 2 | Year 3 | |
|---|---|---|---|---|---|---|
| D1 | Overflow storage expenditure | Company | €72,000 | €72,000 | €72,000 | |
| D2 | Avoided overflow storage attributed to Alpega | Company | 15% | 20% | 25% | |
| Dt | Savings in overflow storage fees | D1*D2 | €10,800 | €14,400 | €18,000 | |
| Risk adjustment | ↓10% | |||||
| Dtr | Savings in overflow storage fees (risk-adjusted) | €9,720 | €12,960 | €16,200 | ||
| Three-year total: €38,880 | Three-year present value: €31,718 | |||||
The interviewee mentioned the following additional benefits that the organization experienced but was not able to quantify:
Improved ease of compliance. By automating, centralizing, streamlining, and generating reports, Alpega TMS supported the interviewee’s organization in being compliant with regulatory authorities and made audits easier. This saves compliance and audit teams’ time and effort, which can be put to more productive use; it may also avoid noncompliance events that can result in penalties and regulatory issues.
Enhanced relationships with partners. By replacing manual communication and back-and forth emails, and their associated frustrations and inaccuracies, Alpega TMS improved the relationship between the interviewee’s organization and its partners. The interviewee said: “I think [Alpega] allowed us to control and improve the service that we’ve gotten from our carriers, whether it be on-time performance or faster response time. It drove improvement in that performance because we can see how long it has taken.”
Improved decision-making from visibility and tracking. Using Alpega TMS, the interviewee’s organization has a real-time, granular view of the business, including the number of transport orders, the volume shipped, the shipment status, and financial targets.
The value of flexibility is unique to each customer. There are scenarios in which a customer might implement Alpega TMS and later realize additional uses and business opportunities, including:
Modular architecture. Alpega TMS offers a modular, scalable TMS, that supports organizations throughout their supply chain journeys, from execution to end-to-end optimization.
Flexibility. Organizations can deploy one or several of Alpega’s add-ons, such as Smart Booking or Reusable Packaging Management, based on their business priorities, evolving needs, and economic conditions, which can add additional business value.
Flexibility would also be quantified when evaluated as part of a specific project (described in more detail in Total Economic Impact Approach).
| Ref. | Cost | Initial | Year 1 | Year 2 | Year 3 | Total | Present Value |
|---|---|---|---|---|---|---|---|
| Etr | Subscription cost | €0 | €26,250 | €47,250 | €63,000 | €136,500 | €110,246 |
| Ftr | Implementation costs* | €37,015 | €0 | €0 | €0 | €37,015 | €37,015 |
| Total costs (risk-adjusted) | €37,015 | €26,250 | €47,250 | €63,000 | €173,515 | €147,261 |
*Cost of implementation by the interviewee’s organization
Evidence and data. The interviewee explained that Alpega TMS operates on a usage-based subscription mode, where the subscription cost is determined by transport order volume. The pricing structure is degressive, which means that the average cost per transport order decreases as the total order volume increases.
Modeling and assumptions. Based on the interview, Forrester assumes that the interviewee’s organization spends €25,000 on Alpega TMS in Year 1, €45,000 in Year 2, and €60,000 in Year 3.
Risks. Forrester recognizes that the degree to which this cost impacts an organization will vary based on the company’s transport order volume as well as the different features an organization implements.
Results. To account for these risks, Forrester adjusted this cost upward by 5%, yielding a three-year, risk-adjusted total PV (discounted at 10%) of €110,000.
| Ref. | Metric | Source | Initial | Year 1 | Year 2 | Year 3 |
|---|---|---|---|---|---|---|
| E1 | Subscription cost | Interview | €25,000 | €45,000 | €60,000 | |
| Et | Subscription cost | E1 | €25,000 | €45,000 | €60,000 | |
| Risk adjustment | ↑5% | |||||
| Etr | Subscription cost (risk-adjusted) | €0 | €26,250 | €47,250 | €63,000 | |
| Three-year total: €136,500 | Three-year present value: €110,246 | |||||
Evidence and data. The interviewee described the integration and implementation cost that his organization incurred to use Alpega. The cost of implementation included:
The cost to integrate the organization’s CRM platform and enterprise resource planning (ERP) system with Alpega.
Time and internal effort for implementing the solution and integrating it into the organization’s environment.
Modeling and assumptions. Based on the interview, Forrester assumes the following for the interviewee’s organization:
Implementing Alpega takes four months.
One project manager lead dedicates 50% of their time during implementation.
The average fully burdened annual salary of a project manager lead is €70,200.
One IT architect dedicates 10% of their time during implementation.
The average fully burdened annual salary of an IT architect is €135,000.
One developer dedicates 10% of their time during implementation.
The average fully burdened annual salary of a developer is €81,000.
One logistics manager dedicates 25% of their time during implementation.
The average fully burdened annual salary of a logistics manager is €57,000.
Risks. Forrester recognizes that the degree to which this cost impacts an organization will vary based on integration costs, implementation length, and FTE salaries, which may vary by region.
Results. To account for these risks, Forrester adjusted this cost upward by 10%, yielding a three-year, risk-adjusted total PV (discounted at 10%) of €37,000.
| Ref. | Metric | Source | Initial | Year 1 | Year 2 | Year 3 |
|---|---|---|---|---|---|---|
| F1 | Integration costs | Interview | €10,000 | |||
| F2 | Implementation time (months) | Interview | 4 | |||
| F3 | Project management FTE | Company | 0.5 | |||
| F4 | Fully burdened annual salary for a project manager | TEI methodology | €70,200 | |||
| F5 | IT architect FTE | Company | 0.10 | |||
| F6 | Fully burdened annual salary for an IT architect | TEI methodology | €135,000 | |||
| F7 | Developer FTE | Company | 0.10 | |||
| F8 | Fully burdened annual salary for a developer | TEI methodology | €81,000 | |||
| F9 | Logistics manager FTE | Company | 0.25 | |||
| F10 | Fully burdened annual salary for a logistics manager | TEI methodology | €57,000 | |||
| Ft | Implementation costs | F1+F2/12*(F3*F4+F5*F6+F7*F8+F9*F10) | €33,650 | €0 | €0 | €0 |
| Risk adjustment | ↑10% | |||||
| Ftr | Implementation costs (risk-adjusted) | €37,015 | €0 | €0 | €0 | |
| Three-year total: €37,015 | Three-year present value: €37,015 | |||||
| Initial | Year 1 | Year 2 | Year 3 | Total | Present Value | |
|---|---|---|---|---|---|---|
| Total costs | (€37,015) | (€26,250) | (€47,250) | (€63,000) | (€173,515) | (€147,261) |
| Total benefits | €0 | €89,262 | €158,652 | €207,522 | €455,436 | €368,178 |
| Net benefits | (€37,015) | €63,012 | €111,402 | €144,522 | €281,921 | €220,917 |
| ROI | 150% | |||||
| Payback | 8 months |
The financial results calculated in the Benefits and Costs sections can be used to determine the ROI, NPV, and payback period for the organization’s investment. Forrester assumes a yearly discount rate of 10% for this analysis.
These risk-adjusted ROI, NPV, and payback period values are determined by applying risk-adjustment factors to the unadjusted results in each Benefit and Cost section.
The initial investment column contains costs incurred at “time 0” or at the beginning of Year 1 that are not discounted. All other cash flows are discounted using the discount rate at the end of the year. PV calculations are calculated for each total cost and benefit estimate. NPV calculations in the summary tables are the sum of the initial investment and the discounted cash flows in each year. Sums and present value calculations of the Total Benefits, Total Costs, and Cash Flow tables may not exactly add up, as some rounding may occur.
From the information provided in the interview, Forrester constructed a Total Economic Impact™ framework for those organizations considering an investment in TMS.
The objective of the framework is to identify the cost, benefit, flexibility, and risk factors that affect the investment decision. Forrester took a multistep approach to evaluate the impact that TMS can have on an organization.
Interviewed Alpega stakeholders and Forrester analysts to gather data relative to TMS.
Interviewed a decision-maker with experience using TMS at their organization to obtain data about costs, benefits, and risks.
Constructed a financial model representative of the interview using the TEI methodology and risk-adjusted the financial model based on issues and concerns of the interviewee.
Employed four fundamental elements of TEI in modeling the investment impact: benefits, costs, flexibility, and risks. Given the increasing sophistication of ROI analyses related to IT investments, Forrester’s TEI methodology provides a complete picture of the total economic impact of purchase decisions. Please see Appendix A for additional information on the TEI methodology.
Benefits represent the value the solution delivers to the business. The TEI methodology places equal weight on the measure of benefits and costs, allowing for a full examination of the solution’s effect on the entire organization.
Costs comprise all expenses necessary to deliver the proposed value, or benefits, of the solution. The methodology captures implementation and ongoing costs associated with the solution.
Flexibility represents the strategic value that can be obtained for some future additional investment building on top of the initial investment already made. The ability to capture that benefit has a PV that can be estimated.
Risks measure the uncertainty of benefit and cost estimates given: 1) the likelihood that estimates will meet original projections and 2) the likelihood that estimates will be tracked over time. TEI risk factors are based on “triangular distribution.”
The present or current value of (discounted) cost and benefit estimates given at an interest rate (the discount rate). The PV of costs and benefits feed into the total NPV of cash flows.
The present or current value of (discounted) future net cash flows given an interest rate (the discount rate). A positive project NPV normally indicates that the investment should be made unless other projects have higher NPVs.
A project’s expected return in percentage terms. ROI is calculated by dividing net benefits (benefits less costs) by costs.
The interest rate used in cash flow analysis to take into account the time value of money. Organizations typically use discount rates between 8% and 16%.
The breakeven point for an investment. This is the point in time at which net benefits (benefits minus costs) equal initial investment or cost.
Total Economic Impact is a methodology developed by Forrester Research that enhances a company’s technology decision-making processes and assists solution providers in communicating their value proposition to clients. The TEI methodology helps companies demonstrate, justify, and realize the tangible value of business and technology initiatives to both senior management and other key stakeholders.
1 Total Economic Impact is a methodology developed by Forrester Research that enhances a company’s technology decision-making processes and assists solution providers in communicating their value proposition to clients. The TEI methodology helps companies demonstrate, justify, and realize the tangible value of business and technology initiatives to both senior management and other key stakeholders.
Readers should be aware of the following:
This study is commissioned by Alpega and delivered by Forrester Consulting. It is not meant to be used as a competitive analysis.
Forrester makes no assumptions as to the potential ROI that other organizations will receive. Forrester strongly advises that readers use their own estimates within the framework provided in the study to determine the appropriateness of an investment in TMS.
Alpega reviewed and provided feedback to Forrester, but Forrester maintains editorial control over the study and its findings and does not accept changes to the study that contradict Forrester’s findings or obscure the meaning of the study.
Alpega provided the customer name for the interview but did not participate in the interview.
Salma Hamdani
Sanny Mok
August 2025
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