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Benchmark Methodology

How AI2COE separates assumptions from diagnostic evidence.

Benchmarks are useful only when they are visibly labelled. This page documents the assumptions behind the scorecard, ROI calculator, industry value forms, and executive report interpretation.

Benchmark variableReference rangeInterpretation boundary
Duplicate-rate benchmark8-18% of active MRO catalog recordsPlanning assumption until replaced by uploaded catalog evidence.
Average affected item valueUSD 850 base referenceUsed only for benchmark sizing where actual unit costs are unavailable.
Carrying-cost drag18-25% annualized reference rangeRepresents working-capital cost, storage, obsolescence, and management overhead.
Recoverable capital range25-55% of duplicate exposureDepends on stock status, criticality, interchangeability, and owner approval.
Emergency-buy premium15-25% planning rangeApplied where duplicate records obscure preferred supplier or available-stock logic.
FX conversionUSD base values converted to local display currencySouth Asian currencies use Lakh/Crore notation; other currencies use K/M/B notation.
Evidence discipline

Benchmark first. Actual diagnostic second. ERP action only after owner review.

AI2COE uses benchmark variables to help leaders size whether a problem is worth examining. PartsCleanse AI then uses uploaded data to create actual findings. The product never treats a planning benchmark as a command to retire, merge, or delete ERP records.

Force Team control: Any public value statement should say whether it is a benchmark assumption, a calculated estimate, or diagnostic evidence from uploaded data.
FAQ

How to interpret AI2COE benchmark numbers.

Are AI2COE benchmark numbers final ROI claims?

No. Benchmarks are planning assumptions. Final ROI depends on uploaded data, actual quantities, unit costs, confidence tiers, and owner-approved remediation.

Why does AI2COE use USD as a base value?

USD is used as a neutral calculation base for benchmark comparability. The portal converts display values into the user's country currency or authenticated profile currency.

Why use Lakh and Crore for India-style currencies?

Large values in INR, PKR, BDT, LKR, and NPR are easier for local executives to read in Lakh and Crore notation than in generic M/B notation.

What makes the diagnostic different from the benchmark?

The diagnostic uses the actual uploaded catalog to produce duplicate-family findings, confidence tiers, and report artifacts. The benchmark only estimates the value signal.

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