TellApe is specialized in RTI (returnable transport items) registration and administration. The company’s philosophy is to be user-friendly and accessible to all types of users and companies. The app and portal have a broad character, making them applicable in various industries.
TellApe also has accessible pricing, so the product can be used by large multinationals as well as SMEs. The cost recovery time is therefore different for every type of company. In this blog, we would like to take a small bakery as an example to calculate the cost recovery time of TellApe.
Situation sketch bakery
Our example uses a bakery business, with three subsidiaries, that supplies fresh products to about 100 locations. The company has five fixed routes that are driven several times a week and twice a day. The trucks are loaded at night between 2 a.m. and 4 a.m. and are unloaded before 8 a.m. the next morning. It often occurs that there is nobody present on site while unloading. During the unloading of the goods, RTI’s are also collected.
The value of a full journey is approximately €18,000, based on 95 dollies and 950 bread crates per truck:
To ensure that there are always enough RTI’s available to transport the products to customers, the company has approximately 570 dollies and 57,000 crates with a total value of almost €99,000.
The total pool is kept up to standard because a shortage of RTI’s entails risks. If there are not enough RTI’s available, it can happen that it is no longer possible to deliver goods. Research has shown that between 5% and 7% of the total pool is lost or seriously damaged every year. To replenish the pool, the company invests between € 4,916 and €6,883 each year.
RTI registration and administration
At TellApe we often deal with these kinds of cases. These losses occur in every industry and every type of business. Even if the RTI’s are registered, companies can still incur losses, for example if the registration is done on paper and not digitally.
The problem may be acknowledged, but it is considered too time-consuming to sit down and devise a step-by-step plan or solution. TellApe helps to set up a simple RTI registration and administration, so the savings follow automatically!
Based on industry experience, the use of TellApe can drastically reduce the amount of RTI’s lost. By better management of the process, companies can respond to damaged or unreturned crates on time. The RTI transactions are visible in real time in the portal and at the same time by the customer through a RTI-receipt. As a result, the administration employees cut the administration time in half and afterwards there is less discussion.
Concrete savings in the bakery industry
- Direct costs of loss and damage are reduced by half, this leads up to between €2,458 and €3,441 in savings per year.
- Indirect costs of the administration are reduced by half the time and the discussion afterwards is also reduced by half. This can save small businesses between five and ten hours per month. On an annual basis, this provides between 60 and 120 hours of administrative space. At an hourly rate of €25/hour, this yields between €1,500 and €3,000.
- The risk of shortages in RTI’s are greatly reduced, so the total pool of RTI’s can be reduced by 10%. This delivers almost € 10,000 extra working capital, which is no longer fixed in RTI’s.
The total amount saved is a minimum of €3,958 and maximum of €6,441 per year.
Cost recovery time for this bakery
TellApe works with subscriptions and the price depends on the number of users. In this case, the baker will need 6 users, namely 1 administrator for the portal and 5 users who register RTI’s in the trucks. As you can see in the diagram below, this company lost € 959.40 in year 1. This means that with minimal cost savings, the company will earn back the investment within five months.
We’re happy to help you with your RTI challenge or calculate the cost recovery time for TellApe for your company. Want to learn more about TellApe?
