SG&A Transformation

Cost Per Transaction Business Case Calculator

Transform SG&A from opaque FTE-based costs to transparent unit economics. Compare current state against industry benchmarks and model automation, BPO, and hybrid scenarios.

Section A

Company Profile

Context that drives benchmark selection and scenario viability. Industry determines SG&A norms — Software (50-60%) vs Manufacturing (10-20%).

Company Name

Annual Revenue ($) Used to calculate SG&A as % of revenue

Fiscal Year

Industry

Total Employees Correlates with HR transaction volumes

Section B

Current SG&A Costs (Annual)

Enter cost and headcount by process. Cost per FTE bridges "people-based" model to transaction economics.

Process	Annual Cost ($)	FTEs	Cost / FTE
Total SG&A	$0	0	$0

Section C

Transaction Volumes (Annual)

Convert from headcount to output. Count unique transactions — invoices (not lines), pay slips (not adjustments).

Transaction Type	Annual Volume	Monthly Avg	Linked Process

Unit Economics

Cost Per Transaction — Current vs Benchmark

Your transaction costs compared to industry best practice. Gap × Volume = annual savings opportunity.

Process	Your CPT	Best Practice	Median	Gap	Opportunity ($)
Total Opportunity					$0

Visual Gap Analysis

Your Position vs Market

Scenario Configuration

Model Transformation Paths

Five scenarios from conservative to aggressive. Each represents a different risk/reward trade-off. Adjust target CPTs and cost assumptions below.

Annual Cost Inflation (%) Wage + benefit inflation; typically 3-5% annually

Volume Growth (%) Annual transaction volume increase

Software License (Annual $)

Implementation Cost ($) One-time; typically 1-2x software cost

Change Management ($) 15-20% of project cost; critical for adoption

Automation Rate (%) % of transactions fully automated (typically 30-50%)

FTE Reduction (%) Headcount reduction (less than automation rate due to exceptions)

Target CPT assumes automation eliminates 60-70% of manual touches. Retained staff handle exceptions, governance, and strategic work.

Transition / Setup ($) Process doc, system integration, knowledge transfer

Retained Governance Team ($) 2-4 people for vendor mgmt, escalation, strategy

Contract Management (Annual $)

Savings vs Current (%) N. America BPO typically 20-30% savings

Transition / Setup ($) Higher due to location complexity

Retained Governance Team ($)

Contract Management (Annual $)

Savings vs Current (%) Nearshore (LatAm / Philippines) typically 40-60%

% Automated (Simple) High-volume, low-complexity @ automation CPT

% BPO (Moderate) Medium complexity @ nearshore CPT

% In-House (Complex) Disputes, legal, strategic @ current CPT

Implementation Cost ($)

Retained Governance ($)

Hybrid = Automation handles simple (60%) + BPO handles moderate (30%) + In-house retains complex (10%). Blended CPT optimizes the cost curve.

Decision Framework

Scenario Comparison — 3-Year View

Side-by-side comparison enables pattern recognition across risk/return trade-offs. 3-year window balances implementation costs against run-rate savings.

Financial Model

Year-by-Year Cash Flow

Scenario	Year 1	Year 2	Year 3	3-Year Total	3-Year ROI

Visualization

Cumulative Savings Trajectory

Industry Benchmark Reference Data

All values are editable — click any number to override with client-specific data. Overrides apply to the business case calculator. Sources shown for each metric. Data scope: Industrial sector (excludes Financial Services and Healthcare).