Phase 2 · Node Layer 09 · The Cost

Four times the budget.
And it isn't closing.

Tennant's original SAP program budget was approximately $5 million. Projected 2026 remediation cost is now above $20 million. That is the disclosed number, on the record. And every month inside the 3–8 month window before H1 2027 adds to it — the compounding cost of running manual workarounds, incorrect signals, and order-to-cash disruption while SAP is remediated underneath.

$5M original budget $20M+ projected 2026 4× original 3–8 mo to H1 2027 Parallel layer closes gap
Cost of Waiting · Live
Every month inside the window carries new cost.

Computed from Tennant's disclosed $20M+ remediation against a rolling 3–8 month horizon from October 2026. The counter accrues in real time from the disclosed baseline.

$20,000,000
+$0.00 since page load
The Math

The original number.
And the actual number.

Tennant disclosed the original budget as a program number. And then disclosed the projected remediation as a materially different number. The gap between them is the cost of the disruption — and it is still moving.

Original Program Budget
$5M

The budget Tennant established at the start of the North America SAP implementation. This was the number the program was approved against.

Baseline · Approved budget · Original scope
Projected 2026 Remediation
$20M+

Tennant's disclosed remediation cost projection for 2026. This is not the total disruption cost — it is the disclosed remediation spend against the original budget.

Multiplier · 4× original budget · Still accruing
$5M
Original program budget
$20M+
Projected 2026 remediation
4×
Multiplier over original
3–8 mo
Window before H1 2027
Where the Money Goes

Six line items.
The cost of the disruption, broken down.

The disclosed $20M+ is not one number. It is a stack of costs — some capitalized, some expensed, some carried as ongoing operating burden. Click any allocation to see the specific cost profile and what the parallel layer avoids.

01
Capitalized

Capitalized Remediation

Direct spend on the SAP remediation program itself — configuration work, integration rebuilds, and parallel system construction to restore functionality.

Category · Capitalized
Nature · One-time program spend
Broken SAP · Ongoing to H1 2027
Parallel layer · Does not add to remediation spend
02
Expensed

Expensed Operating Cost

Costs recognized immediately against operating results — labor, vendors, and program overhead that cannot be capitalized under standard accounting.

Category · Expensed
Nature · P&L impact
Broken SAP · Accruing each quarter
Parallel layer · Bypasses several expensed lines
03
Manual

Manual PO Correction

Tennant disclosed "manual oversight and manual purchase orders" as the operating workaround. Every manual PO is a labor cost that automation should have eliminated.

Category · Operating burden
Nature · Compounds monthly
Broken SAP · Active since Nov 2025
Parallel layer · Returns to zero manual POs
04
Freight

Expedited Freight Surcharge

When demand signals are incorrect, materials arrive off-schedule. Expedited freight is the cost of moving them back in phase with production.

Category · Operating burden
Nature · Per shortage event
Broken SAP · Driven by incorrect signals
Parallel layer · Avoided by correct signals
05
$30M

Lost Sales Impact

Tennant disclosed a $30M sales impact directly tied to the disruption. This is the revenue side of the equation — orders that did not close on time, or at all.

Category · Revenue impact
Nature · Disclosed $30M
Broken SAP · Since go-live
Parallel layer · Closes order-to-cash during window
06
EMEA

Deferred EMEA Opportunity

EMEA deployment was deferred beyond 2026 as remediation focuses on North America. The cost of the deferral is the value of the region staying on legacy systems.

Category · Deferred value
Nature · Delayed modernization
Broken SAP · Beyond 2026
Parallel layer · De-risks the next region
Cost Meter · Drag to Model

Drag the window. See the cost.

The disclosed remediation is $20M+. The window before H1 2027 is 3–8 months. Every month inside that window carries a monthly operating cost — manual PO correction, expedited freight, and lost sales impact. Drag the slider below to model the compounding cost against the disclosed baseline.

Cost of Waiting · Window Model

Computed from Tennant's disclosed $20M+ remediation against an estimated monthly burden across the window. Drag the slider to see the projection change.

$20.0M Total cost in window
3 months · H1 2027 earliest 6 months · Selected 8 months · H1 2027 latest
Cost of Waiting
$—
across the window
Layer Activation
$—
$200K + $25K/month
Delta Avoided
$—
net of layer cost
The Case

The remediation still costs what it costs.
The wait doesn't have to.

Tennant's remediation budget is committed. The $20M+ is being spent to restore SAP. What is not yet committed is whether Tennant carries the operational cost of the wait — manual POs, expedited freight, and lost sales — for the full 3 to 8 months until H1 2027, or whether the parallel layer absorbs that cost while remediation proceeds.

The layer does not add to the remediation spend. It does not duplicate SAP's work. It operates in parallel, restoring order-to-cash during the window, and hands back control when remediation completes. The delta between those two paths is the number the meter above is showing.

Next

You've seen the cost.
Now close the window.

The parallel layer closes order-to-cash inside the 3–8 month window that SAP remediation leaves open. The delta is what you recover.

Cost —
Node Sealed
tennant-remediation-cost · Phase 2 · v1.0.0
LeadReadySite ESAN
Cost · Modeled Live