Value of Jovix in Low Labor Rate Markets
22 June 2018

The Value of Jovix in Low Labor Rate Markets

With the varying cost of labor throughout the world, many times we hear – It is cheaper to have the onsite team search for materials rather than invest in a new system. Au contraire! Jovix provides so much value beyond reducing skilled labor hours spent looking for materials.

Construction wait timesJovix reduces waste related to time waiting for materials and equipment. If you consider an average worker’s 10-hour day, only 5.2 hours is used for time on tools. Of those hours, 1.5 are lost waiting on or looking for materials. This leaves only 3.7 hours of available time on tools.

Jovix’s geo-contextual automation reduces pick times via GPS and increases transaction efficiencies.

Jovix reduces time wasted by workers who must determine and report back the work accomplished by field personnel.

Jovix reduces schedule risk by enabling the real-time reporting of material status, location, and other actionable data including lost material and fabrication delays to quickly inform decision-makers.

Jovix provides consolidated, real-time reporting and visibility to all stakeholders across the project. Jovix provides a single source of truth at any and all points in the supply chain – no matter how simple or complex. Suppliers, fabricators/mod yards, offsite laydowns, contractors, EPC firms, and owner/operators can use Jovix to access critical information in a permissions-based graphical format to collaborate with all project teams..

Example of Project Savings in a Warm Weather Climate and Low Labor Rates

Project Value: $23B
Description: New oil refinery producing 615,000 barrels per day
Start Date: 11/30/2017
Jovix Investment: $2.2M
Jovix Scope:

  • 500,000 materials tracked (Passive RFID)
  • 500,000 Passive RFID tags employed
  • Track & Trace + Field Materials Management
  • ERP Integration (bulk material included)
  • 60 users

Indirect Labor Rate: $30
Direct Labor Rate: $60
Jovix 3-year Deployment Time Elapsed: 5 months

Breakeven Expected Within the First Year:

  • To Date Savings = $1,027,046
    • Transactional Savings = $212,160
      • Shipping/Packing = 487 Hours
      • Receiving = 2005 Hours
      • Warehousing = 2250 Hours
      • Picking = 1500 Hours Saved
      • Issuing = 829 Hours
    • Material Availability = $815,386
      • Saved Indirect Labor Hours = 4,153
      • Saved Direct Labor Hours = 8,305

Jovix Low Labor Rate Markets Key Performance Indicators

Leave a Reply