15 MAY 2023, SOMERVILLE, MA – Tulip Interfaces, a leader in frontline operations, announced today that it has published the results of a Total Economic Impact™ (TEI) study developed by Forrester Consulting and commissioned by Tulip, where the composite model based on customer interviews showed a 448% ROI and a $16.23M net present value over three years and less than 6 month payback period.
The 448% ROI of Tulip’s Frontline Operations Platform
Register for our upcoming webinar to learn how Tulip’s platform has helped companies increase operational efficiency by 15-50% and decrease defects by 70%.
To complete the study, the team at Forrester leveraged findings from interviewing four Tulip customers of various sizes and different industries to develop a composite company and inform the Total Economic Impact™ model. Forrester Consulting developed a composite company for the study that assumed 20 sites and 10,000 employees. Forrester used the composite company assumptions and numbers and assumptions based on the customer interviews and Tulip data to estimate the potential benefits and costs associated with the implementation of Tulip.
Most notably, the study found that augmenting operator workflows for tasks like picking, assembly, and inspection resulted in a 15% increase in direct labor efficiency. With real-time production data at their fingertips, the composite customer also saw a 50% time savings in indirect labor. Additionally, with guidance from digital workflows, operators made fewer errors resulting in 70% fewer defects. Fewer defects led to less scrap and less time spent on defect investigation and rework.
Manufacturing is being hit particularly hard by workforce challenges, and attracting and retaining employees will continue to be a priority with Deloitte predicting an expected 2 million manufacturing jobs being left unfilled by 2030. Manufacturers face a wave of experts retiring and a new generation of tech-savvy workers that stay for shorter tenures.
For the manufacturers interviewed by Forrester as part of the study, Tulip offered a way to address workforce challenges. One VP of manufacturing at a medical device company noted, “Over the last two years, we increased our capacity solely related to Tulip by about 40% to 45%.” According to the study, "The head of operational excellence at a manufacturing company increased the speed of output, quality, assembly transparency, and training employees on an assembly line through digitized work instructions by half a year."
For unquantifiable benefits, the manufacturers interviewed discussed ease of implementation and adaptability. One VP of manufacturing at a medical device company mentioned, “We’re not taking a long time to make a change. If we see an opportunity for improvement, we do it instantaneously.” The study noted that “Interviewees noted the implementation and deployment process for Tulip ranged between three to six months for [the] implementation and deployment process for Tulip depending on the size of the organization.”
The Total Economic Impact™ study developed by Forrester Consulting and commissioned by Tulip is available on the tulip.co website. Tulip is also hosting a webinar on June 1, 2023, featuring a Forrester Total Economic Impact™ Consultant and a Forrester Senior Analyst.
ABOUT TULIP INTERFACES
Tulip, a leader in frontline operations, is helping companies of all sizes and across industries, including complex manufacturing, pharmaceuticals, and medical devices, equip their workforce with connected apps — leading to higher quality work, improved efficiency, and end-to-end traceability across operations. A spinoff out of MIT, the company is headquartered in Somerville, MA, with offices in Germany and Hungary. Learn more at Tulip.co.
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