Maximizing ROI in Year End Budget Talks

The year-end budgeting season is a crucial time for manufacturing organizations to make strategic decisions.

Not only about traditional tangible assets like equipment, personnel, and supplies.

But a notable shift is underway as we navigate the digital frontier. While justifying the need for replacement equipment or securing a reliable steel supplier might be met with little resistance, the realm of software introduces a different challenge. 

In the evolving era of Industry 4.0, validating the expense of digitizing work instructions or implementing a skills matrix is a novel task. 

A lot of our customers have been asking about how to approach new year budgeting. And as these critical conversations draw near, we want to equip you with the data and insights around the significant ROI and efficiency gains that manufacturing digital training platforms bring to facility oversight. 

Crunching the Numbers: Cost-Effective Hiring Solutions

Let’s kick off with a strategic look at how the right connected worker solution can contribute to maximizing return on investment. As you navigate year-end budget discussions, these insights can be invaluable, so let’s crunch the numbers.

Did you know it takes $4100 to hire someone? What if you could cut that number in half? 

This is not out of the realm of possibility for your organization. Below, we share two use cases.

Dozuki worked with a paper manufacturer that embarked on a hiring spree, bringing in a total of a hundred new employees. However, by year-end, only six remained with the organization. 

Their critical revelation came from exit interviews, where departing staff highlighted confusion around work instructions, leading to heightened safety concerns.

This burgeoning turnover had already started to manifest serious repercussions, such as increased scrap waste, overtime expenses, safety incidents, and delayed workflows. 

Recognizing the gravity of the situation, the company foresaw a potential 20% turnover rate over the next five years, a stark contrast to their 6% retention rate in 2022.

The urgency to address this issue became evident, especially considering the limitations of their outdated and unsophisticated training program, that threatened to lock in this concerning turnover trend permanently.

The successful implementation of a manufacturing digital training platform demonstrated the efficacy of the revamped onboarding and training strategy.

Feedback from the pilot phase strongly highlighted that frontline employees considered the solution crucial for improving task performance and understanding information during training, emphasizing the tangible benefits gained from integrating the technology.

What would you do with an extra $2k per employee next quarter? 

Investing in the right connected worker solution not only holds the potential to significantly reduce hiring costs, but can also safeguard your organization from the looming threat of high turnover. That’s one piece of equipment you can’t afford to ignore!

For our second use case, let’s discuss our work with an aerospace manufacturer.

In the span of just a month, the efficiency of their year-end employee onboarding skyrocketed by an impressive 90%.

This achievement was a notable financial win of $80,000 reclaimed within the realms of human resources!

That could be your company. This case study is a testament to the potential synergy between manufacturing prowess and cutting-edge technology. It symbolizes an era where knowledge seamlessly transfers, processes streamline, and you confidently wield the tools of the digital age. 

But this isn't just a narrative, it's the tangible outcome of embracing connected worker solutions in the context of year end planning and budgeting.

Revolutionizing Facility Oversight and Efficiency

The final strategy for maximizing ROI during year-end budget talks is around oversight. In short,  your time is valuable! Leaders who are overseeing multiple facilities are a significant investment in payroll, travel, and brain power, and you cannot afford to overlook waste in this category. 

Such waste might not be as visible as, say, overprocessing, chemical waste, but the waste in the equipment of human potential is critical.

That’s the underrated upside to rolling out a manufacturing digital training platform. You not only curtail travel costs, but also align with ROI efforts. 

Bottom line: You’re too valuable to spend thousands of dollars and hundreds of hours each year on traveling to numerous plants. 

Connected worker solutions not only curtail these costs but also aligns with key points in year end budget conversations:

• Cost-Efficiency: You will save tens of thousands on travel expenses by virtually touring facilities, eliminating the need for constant physical presence.
• Time Optimization: You will spend less time ensuring people are trained at each facility and overseeing processes, allowing you to focus on more strategic aspects of your role.

Leaders overseeing multiple facilities can't afford to ignore the potential savings embedded in a manufacturing digital training platform. That money can be reinvested in the equipment that matters most, i.e., your talent.

Imagine a future where you save tens of thousands on travel expenses, optimize your time, and focus on the strategic aspects of your leadership role, all made possible by integrating these connected worker solutions into your year end budgeting strategies.

Ultimately, as you aim to maximize ROI, Dozuki stands as a powerful solution in your journey toward operational excellence.