Velaurum

Drift cost

What does fragmentation actually cost?

The status quo isn't free. Three drivers compound year over year: working capital trapped in inventory you can't fully see, labor spent reconciling six systems each quarter, and the audit-cycle multiplier on top. Tell us roughly what you operate. The model returns an estimate with every assumption shown — you can argue with every line.

Your operation

Three inputs. Adjust as needed.

Distinct geographic operations with their own asset count.

Combined book value of stocked materials and capital equipment, across all sites.

Finance + ops time spent matching the GL to the floor in a typical quarter.

Estimated annual drift cost

Roughly €74,400 per year.

An estimate from a transparent model — not a quote. Three drivers, three formulas, three numbers you can verify against your own books.

How the number is built

Working capital drag
inventory × 8% dormant share × 6% cost of capital
€48,000 / year
Reconciliation labor
hours × 4 quarters × €80/h blended rate
€19,200 / year
Audit-cycle multiplier
hours × 1.5 audit factor × €80/h (one cycle per year)
€7,200 / year

About this model

Assumptions you can argue with.

The percentages are mid-range benchmarks from public asset-operator studies, not tail-of-distribution numbers. Your real figures may be higher or lower; the model exists to start the conversation, not replace your own analysis.

  • 8% dormant share
    The portion of inventory and equipment that is, on a given day, not earning. Slow movers, obsolete stock, dormant licenses, depreciated equipment still on the books. Public benchmarks range 5–15% depending on sector.
  • 6% cost of capital
    Mid-range weighted average for European industrials. Your actual WACC may differ; substitute your own number to refine the estimate.
  • €80/hour blended labor
    A mix of finance, operations, and field-supervisor time during reconciliation. Includes overhead. Use your own loaded rate for a sharper figure.
  • 1.5× audit factor
    Audit cycles trigger additional preparation work — a partial re-reconciliation plus evidence assembly. The factor is conservative; some operators report 2× or higher in heavily regulated sectors.

Want a tailored read?

Tell us about your operation. We'll come back with an estimate built on your numbers, not benchmarks — and the two or three places fragmentation is hitting hardest.

Get a tailored estimate