aPriori Provides Manufacturers with 603% ROI and Payback within 6 Months, According to The Total Economic Impact Study

aPriori is providing manufacturing brands and suppliers with a 6X ROI, payback in under six months, and a net present value (NPV) of $19.7 million during a three-year period. Those are just some of the findings in a commissioned study conducted by Forrester Consulting on behalf of aPriori. "The Total Economic Impacttm of aPriori's Manufacturing Insights Platform" was published in November 2022.

Forrester Consulting interviewed four customers to quantify aPriori's benefits and associated costs. The analyst firm then aggregated the interviewees' experiences and combined the results into a single, composite global manufacturing organization with $5 billion in annual revenues and 40,000 employees for this study.

Quantified Benefits of aPriori

The Forrester Consulting study results are based on a three-year, risk-adjusted present value (PV) for the composite aPriori customer. Key findings include:

• A 603% ROI. The results are based on composite organization benefits of $22.9 million over three years versus costs of $3.3 million.
• An NPV of $19.7 million. Forrester Consulting defines NPV as: "The present or current value of (discounted) future net cash flows given an interest rate (the discount rate). A positive project NPV normally indicates that the investment should be made unless other projects have higher NPVs."
• 10% reduction in procurement spend. aPriori helps to improve negotiations and collaboration with suppliers by accurately calculating the cost to manufacture a design within the digital factory. For this study, aPriori only addressed 2%-4% percent of the composite organization's Cost of Goods Sold (COGS) during the first three years of implementation. For customers that address a greater percentage of COGS during their deployment, the ROI could be significantly higher.
• Increase design efficiency up to 70%. By detecting manufacturability issues in the early design stages, the composite organization reduces costly iterations and late-stage change orders. The study showed productivity growing from 50% to 70% and a risk-adjusted PV efficiency benefit of $2.5 million.

"The Forrester Consulting Total Economic Impacttm study spotlights, in our opinion, the economic value that aPriori has been providing manufacturers for more than 15 years," said Stephanie Feraday, aPriori President and Chief Executive Officer. "The study determined a 603% ROI and rapid aPriori payback using the assumption that customers only use aPriori to analyze two-to-four percent of their total COGS. Manufacturers that embed aPriori deeper into their operations gain even more cost savings, operational efficiencies, and new sustainability insights. And aPriori uses digital thread technology to enable product brands to access data from other enterprise systems to make informed decisions quickly and confidently."

Independent Study Spotlights aPriori Value

Additional study findings from Forrester Consulting and aPriori customers provide further insight regarding aPriori's value:

"aPriori enables engineering and procurement teams to abandon their manual environments, streamline processes through automation, and improve sourcing methods, leading to significant operational efficiencies, enhanced negotiating power with suppliers, and reduced product delivery delays."

? Forrester Consulting

"We had initially wanted a 10 times ROI on the investment and, in our first year, we were at about 12 times ROI. We would like to continue growing that year-over-year."

? Program manager, strategic sourcing, manufacturing

"With aPriori, it was much clearer to see how the design changes were tied to cost improvements."

? Manager, design to cost, manufacturing

"The global supply managers who use aPriori's ?should cost' analysis to negotiate with our suppliers have seen millions in annual cost savings with their suppliers."

? Program manager, strategic sourcing, manufacturing

Download the Full Study

Read the full study here ? "The Total Economic Impacttm of aPriori's Manufacturing Insights Platform."

About aPriori

aPriori is the leading provider of digital manufacturing simulation software that brings product design and sourcing teams closer to production. By leveraging the digital twin within our digital factories, we automatically generate manufacturing intelligence that helps manufacturers collaborate across the product development process to make better design, sourcing, and manufacturing decisions that yield higher-value products in less time. aPriori solutions are now available in the cloud or on-premise. Headquartered in Concord, Mass., aPriori also has offices in Belfast, Northern Ireland, and Munich, Germany. To learn more about aPriori, visit www.apriori.com.

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