Return on Investment

One of the hardest tasks for any business is quantifying the potential return that a given information system or technology can deliver versus the initial investment required to obtain it. We understand these difficulties, and have set out below a high-level ROI proposal for Verve Sketch that is broadly applicable to any standard fashion house or brand. These figures are not definitive, but should serve as a good basis for expected analysis for a small medium enterprise licence:

Direct Costs Benefits:

1. Reduction of document transfer costs and production to manufacturing/prototyping = 25% of the person’s time searching/ transferring/scanning/filing/sharing images.

Productivity Benefits:

1. Increase in creative designer’s portfolio of options and capacity due to increased efficiencies (estimated at 75% based on reusable engineered products/parts library of their computer based design/technical drawing).

2. Reduction in quality defects based on fewer mistakes, linked to the accuracy of detailed, scaled, industrialised images supporting the production. process

3. Reduction in the number of sample iterations (average 3:1 coming down to a realistic 2:1).

4. Re-use of standard product design templates improving quality and fit, and resulting in a reduction of returns to manufacturer.

5. Improved product development sustainability based on common parts library linked to improved methods of manufacture, leading to improved supplier efficiency and reduced product cost.

Additional added Benefits:

1. Increase in season product portfolio due to increased efficiencies in image development.

2. Ability to add last minute, on-trend styles to the portfolio.

3. Digital asset consistency, leading to improved Supply Change sustainability.

4. Reduced training costs & time for new designers to reach maximum efficiency.

Example potential monetary returns:

1. Increased efficiencies resulting in improved season portfolio of between 3% & 5% on a $100m would give additional contributions of between $600k & $1m based on a 20% Gross Margin.

2. 1% increase in last minute flash season products would give an additional $200k contribution.

3. Reduction in sampling costs from 3 samples per cycle to 2. Assuming typical sampling costs of $500, including specification, manufacture, shipment & assessment (Average sample value of $50 x 10).

4. Quality – reduction in defects by 0.5% on existing defect rates.

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