Annual Service Visits
50
500
Average Revenue per Visit
$100,000
$10,000,000
Gross Margin on Non-Warranty
10%
50%
Annual Spare Parts Inventory
$7,000,000
$30,000,000
Cost of Capital
5%
15%
Annual Expedite / AOG Shipping
$100,000
$1,000,000
% Unpaid / Unbillable work
5%
15%
Total Savings
Recovered Unpaid work
Incremental Contribution from Sales
Incremental Contribution from Throughput
Inventory Carrying Cost Benefit
% reduction in expedite costs