Analyzing Metrics and ROI in Robot-As-A-Service Operations

In this episode, CJ interviews Dustin Pederson of Locus Robotics, as part of his series of interviews with CFOs from pre-IPO companies recorded live on the floor of the New York Stock Exchange. Dustin explains the Robot-as-a-Service (RaaS) model, a subscription-based service, how it works, and how it makes money. He and CJ do a deep dive into business models that rely on supply chains, the unique challenges of managing inventory, and tactical tips for CFOs looking to optimize their cash conversion cycles. They also examine the unique metrics tracked by Locus Robotics as both a hardware and software company compared to that of pure SaaS models. Dustin provides helpful information and tactical advice on how to build an ROI model and present it to buyers. He also shares insights on Locus Robotics’ market positioning, specialized ERPs for warehouses, and how the interactions between humans and robots play out in the companies Locus Robotics serves.

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Mercury is a financial technology company, not a bank. Banking services provided by Choice Financial Group and Evolve Bank & Trust®; Members FDIC.

NetSuite provides financial software for all your business needs. More than 37,000 thousand companies have already upgraded to NetSuite, gaining visibility and control over their financials, inventory, HR, eCommerce, and more. If you're looking for an ERP platform ✅ NetSuite: https://netsuite.com/metrics and get a customized KPI checklist.

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TIMESTAMPS:

(00:00) Preview and Intro

(02:05) Sponsor - Leapfin | Mercury

(04:19) The Robot-as-a-Service Model

(07:42) Supply Chain Challenges for Hardware Companies

(08:50) Working Capital in a Hardware Company

(11:12) Tips for CFOs Managing Inventory

(12:44) Metrics Tracked by Locus Robotics

(14:39) Explaining Locus Robotics’ ROI to a CFO

(16:27) Sponsor - Netsuite | Maxio | Planful

(19:46) Building and Presenting an ROI Model

(22:41) Managing Assets in Unique Business Models

(23:51) How Locus Robotics Positions Itself in the Investor Market

(25:21) Locus Robotics’ Go-To-Market Motion

(27:18) ERPs for Warehouses

(28:46) The Interaction Between Humans and Robots

(30:14) The Industries Served by Locus Robotics

(31:26) Long-ass Lightning Round: A Lesson Learned About Presentations

(32:29) Dustin’s Top Three Tips

(34:50) Negotiating Tips

(37:37) Finance Software Stack