“If each of your employees become a few hours more efficient in one month, the software already pays for itself multiple times over.”
As regulatory bodies continue to increase industry standards, traditional EHS Management systems are rendered inadequate for handling high volumes of information. Spreadsheets or outdated technology systems complicate collaboration with wide groups of users across the organization. As organizations widen their data collection to include other entities of the company these old methods become problematic.
If your company has more than 10 employees or are bound by industry regulations that necessitate a safety program, it is time to consider a more modern and efficient system. The latest systems are more standardized, easier to implement and use, and (based on administration hours and productivity) more affordable. Companies of any size can realize value that justifies the investment as a modern system will significantly boost productivity, internal communication, and management visibility to mitigate costly risk.
A modern EHS Management system will redefine efficiency standards for your organization. The centralization of information, more accurate data, and enhanced management visibility will significantly reduce risk and incident occurrences while reducing substantial costs. The ROI is typically more than 5X the cost of the software with a payback period of well under 12 months. This obviously varies between companies and there is no concrete formula for calculating ROI on a software integration. Consider the following example using a vehicle pre-trip inspection;
The traditional pre-trip inspection
Prior to your inspection you need to find your paper form, perform a walkaround, log mileage, safety equipment, and any damage or deficiencies. Let’s assume that 99.9% of the time there are no issues, and this is a simple and straightforward process.
How long does this take?
At most 5 minutes. Keep in mind the information input is only as accurate as the individual completing the inspection, and then must be submitted to the safety manager or admin to digest and archive.
Using an app for a pre-trip inspection
An app is opened on the employee’s mobile device, and the QR code placed on the vehicle or equipment is scanned with one input on the app. The user information and equipment information are automatically populated on the digital form. The user inputs the mileage, checks off that there are no deficiencies, submits the form and the pre-trip inspection is complete.
How long does this take?
At most one minute. However, after the form is submitted, it is automatically archived and notifications are sent to the stakeholders in the work flow. The submission can be viewed at anytime by the safety manager or escalated instantly to another designated respondent if an action item is present. Additionally, the system updates the newly reported odometer/hour meter reading to the asset management profile of the vehicle or asset and can trigger additional notifications if maintenance is scheduled at that point.
The bottom line.
If we use our conservative time estimates of a 4-minute time savings per day on this one form and extrapolate this over a month of 20 work days we find that this one individual employee has now saved 80 minutes of time. With this time they can be performing their role that generates revenue for the company.
Keep in mind this does not account for any inaccuracies the digital form mitigates, as well as the time for the safety manager to manually input the paper forms information and create any necessary action items long after they are logged.
The ROI in this case is already realized by digitizing one form.
250 Users Desktop & App
Burdened Labour Rate: $60/hr
Implementation Time: 1 Month
Onboarding Time: 2 Months
Setup Cost (One Time): $5000
Software Cost: $50000
Return on Investment
In 1 Year