Reduced Stockholding Cost

Evidence and data. The interviewees noted that their organizations’ lack of confidence in inventory accuracy, stemming from the previous manual environment, resulted in longer stockholding times per customer. This inefficiency prevented optimal use of warehouse space, as poor organization and inaccurate data failed to reflect actual stock levels or locations in real-time. Consequently, this limitation reduced the number of customers they could serve per warehouse.

• Interviewees reported reduced stockholding time after implementing DexoryView from having up-to-date inventory data. Customers of the 3PL could make more informed decisions about stock replenishment and allocation as well as process improvements to avoid overstocking and reduce holding time.

• The commercial lead UK&I at a supply chain management and warehousing organization explained: “The Dexory journey has reduced our stockholding period from 10 weeks to six weeks. As the number of moves in the warehouse goes up, churning 195,000 pallet locations every six weeks, this [solution] helps us optimize revenue from space.”

Modeling and assumptions. Based on the interviews, Forrester assumes the following about the composite organization:

• The composite organization implements DexoryView in one new warehouse per year.

• The composite sees reduced stockholding as a one-time benefit in the first year of implementing DexoryView.

Risks. The value of this benefit can vary across organizations due to differences in:

• The average stockholding cost of the warehouse.

• The baseline stockholding time.

• The number of warehouses that implement DexoryView per year.

Results. To account for these risks, Forrester adjusted this benefit downward by 15%, yielding a three-year, risk-adjusted total PV (discounted at 10%) of $1.0 million.

Cost Savings From Fewer Lost Pallets

Evidence and data. Interviewees noted that their organizations’ previous approaches to investigating lost pallets were ineffective: Warehouse staff had to walk through the warehouse using cameras to locate missing pallets. Additionally, time-consuming, manual cycle counts resulted in a lack of real-time information on pallet locations and were prone to human error. Consequently, the volume of lost pallets was higher before implementing DexoryView.

After implementing DexoryView, all interviewees’ organizations gained daily visibility into pallet locations in the warehouse. If any discrepancies or issues with pallet tracking arose, Dexory’s platform sent alerts and flagged potential problems, enabling immediate action to prevent pallet loss. This increased visibility reduced the number of lost pallets and minimized the need for investigations. Additionally, they reduced the time spent on each investigation.

Reduction In Lost Pallets

• The vice president of cargo technology at an air cargo, fuel, and ground services organization explained: “Our unable to locate (UTL) has dropped by 60% as a result of Dexory. The robot scans the pallets in every single place in the warehouse and does about 572 racks at one go and keeps tracking them. Prior to DexoryView, before creating a UTL ticket, a department of two people would have to manually go up and down the warehouse using cameras to search for the missing pallet. This process could go on for 30, 60, or even 90 days with no guarantee that the missing pallet would actually be found.” They also explained that with the Dexory robot, their organization moved two cargo agents to roles as a sales analyst and a supervisor.

• The same interviewee mentioned that before implementing Dexory, they used to lose 500 to 600 pallets per year at one site valued at $0.5 million.

Reduced Time Spent Per Investigation

• Each missing pallet required an individual investigation to attempt to locate it and determine the reason for its loss. Interviewees reported that prior to Dexory, it took an average of 24 hours for their organization to conduct one missing pallet investigation. However, after implementing Dexory, they spend an average of 30 minutes per investigation. Interviewees can now rely on daily reports to track the last known location of the missing pallet and potentially determine how it was lost.

Modeling and assumptions. Based on the interviews, Forrester assumes the following about the composite organization:

• The composite organization uses DexoryView in one warehouse in Year 1, two warehouses in Year 2, and three warehouses in Year 3.

• There are a total of 30,000 pallets on average per warehouse.

• The baseline percentage of pallets lost per warehouse for the composite before DexoryView is 1.7% (i.e., 510 pallets lost per warehouse).

• The composite sees a 30% reduction in lost pallets per warehouse after implementing DexoryView (i.e., 153 out of the 510 pallets are no longer lost).

• The composite conducts one investigation per missing pallet per warehouse (i.e., 153 investigations per warehouse per year).

• The composite reduces its time per investigation from 24 hours to 30 minutes with DexoryView.

• It dedicates one warehouse staff member (e.g., a cycle counter) per investigation.

Risks. The value of this benefit can vary across organizations due to differences in:

• The number of pallets lost as per prior warehouse setup.

• The number of warehouse sites that implement DexoryView over three years.

• The average time and effectiveness of lost pallet investigations.

• The resources dedicated to investigating missing pallets (i.e., capital and labor).

• The salaries of staff dedicated to investigating missing pallets.

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 $1.0 million.

Automated Cycle Counting Efficiencies

Evidence and data. Interviewees explained that prior to Dexory, their organizations typically had multiple cycle counters for counting warehouse inventory, which limited their ability to reallocate staff to more productive tasks such as picking or putaway. Maintaining full-time resources for this single role hindered overall warehouse operational efficiency.

• With Dexory, interviewees said that their organizations did not need as many cycle counters as before. The general manager at a warehouse and 3PL organization explained that their objective for using Dexory came from an outbound technical standpoint on how to reduce headcount in their inventory control and quality assurance department. They mentioned, “Due to Dexory, we were able to move four cycle counters and one researcher to other areas of the business, ensuring the staff was utilized more effectively without eliminating positions.” The Dexory robot’s automation capabilities meant the 3PL could dedicate just one resource to overseeing cycle counting rather than multiple team members.

• By reallocating existing staff instead of hiring new employees, the same interviewee also mentioned that their company saved on onboarding, training, and learning curve costs associated with new hires. Previously, new hires received four hours of internal training and progressed through a four-week learning curve, achieving 60% proficiency in week one, 75% in week two, 85% in week three, and 90% to 100% in week four. The dedicated trainer spent 100% of their time in week one and 50% in weeks two through four coaching new hires in case picking and putaway, and tracking their progress.

Modeling and assumptions. Based on the interviews, Forrester assumes the following about the composite organization:

• The composite organization uses Dexory in one warehouse in Year 1, two warehouses in Year 2, and three warehouses in Year 3.

• There are five full-time cycle counters per warehouse prior to using Dexory.

• Each cycle counter has an average fully burdened annual salary of $50,000.

• The composite achieves an 80% reduction in the number of full-time cycle counters required because of Dexory and needs only one full-time cycle counter per warehouse.

Risks. The value of this benefit can vary across organizations due to differences in:

• The number of warehouses that use Dexory over the three-year period.

• The baseline number of cycle counters that each warehouse has before Dexory and whether cycle counters are employed full time.

• The average fully burdened annual salary for each cycle counter, which could vary by industry or region. Alternatively, organizations using different roles for cycle counting could have different salaries.

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 $867,000.

Reduced Fines From Improved Fulfillment

Evidence and data. Interviewees explained that with their organization’s previous manual environment for tracking warehouse inventory, they often faced challenges fulfilling customer orders on time and were fined for each unfulfilled or late order.

• The commercial lead UK&I at a supply chain management and warehousing organization mentioned: “To be successful in an aggressive market from a contract logistics perspective, we have to be willing to take risks and take on fines.” This interviewee noted that their organization would be fined hundreds of pounds for every failed or under-fulfilled SKU and that this was a typical practice in today’s market.

• The same interviewee explained the benefits of adopting Dexory: “With Dexory’s thorough reconciliation on a daily basis, we have a 99.9% inventory accuracy target instead of the 99.5% accuracy with standard flow of cycle counting once a year. So the risk is removed, as we now have one failure every few weeks or months across all customers.” They noted that although the cost of entry was higher for Dexory than for its competitors, its output was greater. The interviewee’s organization ultimately reduced its costs by counting cost per location rather than cost of deployment. It also avoided fines rather than delaying them, helping preserve its positive reputation.

Modeling and assumptions. Based on the interviews, Forrester assumes the following about the composite organization:

• The composite organization uses Dexory in one warehouse in Year 1, two warehouses in Year 2, and three warehouses in Year 3.

• Each of the composite’s warehouses have an average of 90,000 orders per warehouse per year.

• The average fine the composite must pay for each unfulfilled order is $410.

• The inventory accuracy was 99.5% before implementing Dexory, which improves to 99.9% with Dexory.

Risks. The value of this benefit can vary across organizations due to differences in:

• The number of warehouses that use Dexory over the three-year period.

• The average orders per warehouse depending on its size and the 3PL’s industry.

• The fine per unfulfilled order, which can depend on the specific customer and their industry and the warehouse operational region.

• The inventory accuracy before Dexory, which can vary by warehouse specificities (e.g., whether the inventory counting process was fully manual, fully automated, or hybrid).

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: $640,000.

Reduced Racking Damage

Evidence and data. Interviewees noted that their organizations experienced more racking damage before using Dexory. Racking inspections were manually conducted by warehouse staff and therefore were infrequent and less accurate. The racking damage also required 3PLs to invest in and store spare parts.

• The commercial lead UK&I at a supply chain management  and warehousing organization explained their approach to investigating and handling racking damage. They described the previous environment where one warehouse staff member conducted a monthly racking inspection, as required by law. When they detected racking damage, the inspection process took two weeks, with the root causes being discovered in only 50% of cases. If there were no spare parts available in the warehouse, the resolution time for racking damage could range from one to six weeks.

• The commercial lead UK&I further explained the impact of having the Dexory robot scan the warehouse at least once every 24 hours to ensure the racking is accurate and investigate potential racking errors quickly. They noted that staff now understand that unreported racking issues are their responsibility and are more likely to report issues immediately. From a capital perspective, reduced racking damage also means their warehouse needs fewer spare parts.

Modeling and assumptions. Based on the interviews, Forrester assumes the following about the composite organization:

• The composite organization uses Dexory in one warehouse in Year 1, two warehouses in Year 2, and three warehouses in Year 3.

• The composite has 30,000 pallets per warehouse.

• The cost of racking a single pallet for the composite is $113.

• Dexory enables the composite to reduce its racking damage by 2%.

Risks. The value of this benefit can vary across organizations due to differences in:

• The number of warehouses that use Dexory over the three-year period.

• The number of pallets per warehouse.

• The region in which the 3PL operates.

• The effectiveness of investigating racking damage prior to Dexory.

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 $294,000.

Empty Location Checks Cost Savings

Evidence and data. Interviewees explained that their organizations typically needed one full-time warehouse staff member to check each warehouse row manually for empty, unoptimized locations. These checks slowed operations as the staff responsible could not dedicate their time to other warehouse activities.

Interviewees recognized the value of using the Dexory robot, equipped with 3D LiDAR, cameras, and RFID scanners, to detect empty slots instantly and autonomously and instantly update the WMS. This automation eliminated the need for warehouse staff to spend time manually searching for underutilized spaces and recording the data. Interviewees mentioned that, unlike with manual reporting, they did not require double verification once the Dexory robot reported the locations, which streamlined warehouse operations.

Modeling and assumptions. Based on the interviews, Forrester assumes the following about the composite organization:

• The composite organization uses Dexory in one warehouse in Year 1, two warehouses in Year 2, and three warehouses in Year 3.

• The composite organization saves 40 hours per week (2,080 hours per year) using Dexory robot to scan for empty locations, which is equivalent to one, full-time warehouse staff member.

• The fully burdened hourly rate for a warehouse staff member dedicated to investigating empty locations is $24.

Risks. The value of this benefit can vary across organizations due to differences in:

• The number of warehouses that use Dexory over the three-year period.

• The number of warehouse staff dedicated to investigating empty locations and the time spent by each.

• The fully burdened hourly rate for warehouse staff dedicated to investigating empty locations.

• The extent to which the warehouse optimizes space, specifically in minimizing the number of empty locations before implementing Dexory.

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 $216,000.

Reduced Audit Fees

Evidence and data. All of the interviewees’ organizations saved on their auditing costs and effort as a result of implementing Dexory. Since counting inventory manually previously took from days to months, 3PLs had to stop operations for inventory checks before warehouse site audits.

• The commercial lead UK&I at a supply chain management and warehousing organization said that to prepare for audits before Dexory, they would stop operations for four consecutive days to conduct wall-to-wall counts — meaning customers had to forgo four days of potential sales and revenue.

• The national stock manager at an international contract logistics organization also explained the impact of Dexory on the auditing process in one of their warehouses: “Typically I would have to be on site for five days back-to-back before an audit, and now with Dexory, my presence on the site is not needed at all, saving 450 euros per day.” The interviewee further elaborated on the process of preparing for audits: After receiving three days’ notice from their bank, two team members would have to try to manually count warehouse stock, a task that would normally take one to two weeks.

• Dexory automatically generates daily reports of warehouse stock, so interviewees’ organizations no longer needed to stop operations to prepare for audits. This process saved time and effort for the 3PLs and ensured the accuracy of information provided to auditors.

Modeling and assumptions. Based on the interviews, Forrester assumes the following about the composite organization:

• The composite organization uses Dexory in one warehouse in Year 1, two warehouses in Year 2, and three warehouses in Year 3.

• It reduces internal audit costs per warehouse by $60,000 each year with Dexory.

• External auditors charge the composite $20,000 per warehouse site.

• Audits are performed once a year per warehouse site.

• The composite saves 10% of the external auditing fee with Dexory as external auditors can complete their audits faster.

Risks. The value of this benefit can vary across organizations due to differences in:

• The number of warehouses that use Dexory over the three-year period.

• The effort to prepare for audits (e.g., whether there is existing automation).

• Fees charged by external auditors depending on the specific auditor, the region, the warehouse size, and other factors.

• Frequency of audits per warehouse (e.g., yearly, quarterly).

Results. To account for these risks, Forrester adjusted this benefit downward by 15%, yielding a three-year, risk-adjusted total PV (discounted at 10%) of $254,000.

Unquantified Benefits

Interviewees mentioned the following additional benefits that their organizations experienced but were not able to quantify:

• Improved health and safety. DexoryView allows organizations to detect when dangerous goods are in the wrong areas and helps locate where they are in the warehouse (e.g., lithium batteries, oil, and propellants).

• Improved employee retention. DexoryView reduced footfall in storage areas by 31% so employees could move around more safely. It also decreased the need for workers to operate heavy machinery (an environment that interviewees noted led to higher turnover). These factors contributed to improved worker conditions and employee retention of 99.4%.

• Cleaner warehouse and equipment. Interviewees explained that implementing Dexory enabled their organization to be more proactive about the cleanliness of its warehouses and detect issues with tools or equipment, improving efficiencies from a putaway and outbound standpoint. The general manager at a warehouse and 3PL organization gave an example of fixing barcodes on pallets to make them easier for the Dexory robot to scan.

• Reduced training and supervision. Interviewees said that the automation provided by Dexory reduced the need for extensive training and supervision of staff for inventory management tasks. Moreover, they noted that implementing Dexory required minimal training for users due to the platform’s intuitive nature.

• No overtime, temporary labor, or additional equipment required. During peak periods, manual processes required the interviewees’ organizations to commit additional overtime and temporary labor. All interviewees noted that the efficiency gains from Dexory’s scanning robot reduced the need for extra labor and equipment costs.

• High professionalism from Dexory. The general manager at a warehouse and 3PL organization said: “Dexory has been super-responsive in building tools that their customers want to see and need. The team has been fantastic in getting that stuff built out.”

Flexibility

The value of flexibility is unique to each customer. There are multiple scenarios in which a customer might implement DexoryView and later realize additional uses and business opportunities, including:

• Scalability with expanded solution use. All interviewees expressed interest in implementing Dexory in more warehouse sites to realize higher monetary benefits, automate basic warehouse functions (e.g., cycle counting), and standardize their offering across customers. The commercial lead UK&I at a supply chain management and warehousing organization said: “In every warehouse we build, we plan to put DexoryView into that process. In mainland Europe, it has already been deployed in three warehouses, and we plan to add it to another additional five warehouses in Europe. We are currently in conversations to expand to the US and Asia.”

Flexibility would also be quantified when evaluated as part of a specific project (described in more detail in Appendix A).