Layer 04 · The Value Model

The number
before the number.
The price has already been paid.

What this page is The Tennant Value Model is a financial framework that quantifies the bleed avoided by activating the parallel demand signal layer during the SAP remediation window — comparing Do Nothing, Remediate SAP Only, and Node + SAP Remediation over the same 18-month timeframe.

Tennant has spent $59.1 million on ERP modernization. Lost $30 million in sales. Budgeted $5 million for remediation, now projecting $20+ million. Recovery is pushed to H1 2027. The node activates at $200,000 + $25,000/month. This page exists because the math was already decided before anyone asked.

Author: LeadReadySite ESAN Published Updated Sources: 10-K · Earnings calls · SEC filings
The Bleed · Documented

What has the ERP disruption already cost Tennant?

Tennant disclosed a $30 million sales impact from the November 2025 ERP disruption, a $59.1 million total ERP investment in 2025, and remediation costs projected to exceed $20 million against an original $5 million budget. The recovery timeline has been pushed to H1 2027. These are public disclosures, not estimates.

Sales Impact
$30M
Estimated sales loss from the November 2025 North America ERP disruption. Three to four weeks of limited order entry, shipping, and service capability.
Q4 2025 Earnings · CEO Dave Huml
ERP Investment 2025
$59.1M
Total ERP initiative investment: $30.6M capitalized, $28.5M expensed. This is the cost of building the system, before remediation.
FY2025 10-K · Free Cash Flow Disclosure
Remediation Budget vs. Actual
$5M → $20M+
Original remediation budget was approximately $5 million. Projected 2026 spend now exceeds $20 million. The overrun is $15M+ and compounding.
Q4 2025 Filing · Remediation Disclosure
Recovery Timeline
H1 2027
ERP recovery back to normal is now expected in the first half of 2027, delayed by one or two quarters from the original H2 2026 target. EMEA deployment remains deferred beyond 2026.
Q2 2026 Earnings · CEO Dave Huml
The Node Cost · Transparent

What does the Tennant Node cost?

The Tennant Node activates at $200,000 one-time plus $25,000 per month operation. Total year-one cost: $500,000. This is separate from and does not compete with Tennant's existing SAP remediation budget. The node operates alongside SAP.

Standalone Node · No Hidden Fees
Activation
$200K
Monthly Operation
$25K

Year one total: $500,000 · Less than 1% of Tennant's 2025 ERP investment

The Model · Interactive

What is the bleed avoided by activating the node?

Bleed avoided = monthly manual workaround cost × months until SAP recovery. Tennant's disclosed manual workaround costs — overtime, labor inefficiencies, overhead deleverage, premium freight, expedited freight — are the baseline. Recovery target is H1 2027. The node operates for the full wait window. Adjust the sliders to model the scenario.

Overtime · labor inefficiencies · premium freight · expedited freight
H1 2027 target per Tennant's own disclosure
Original budget vs. $20M+ projected 2026
Bleed Avoided
$10.80M
over 18 months · manual workaround eliminated
Activation
$200K
Monthly operation
$25K/mo
Total node cost (18mo)
$650K
Net benefit
$10.15M
Three Paths · Same Timeframe

What are Tennant's options?

Three paths over the same 18-month window until H1 2027 recovery: Do Nothing, Remediate SAP Only, and Node + SAP Remediation. Same timeframe. Three different outcomes. The manual workaround cost is $10.8M in the first two paths and $0 in the third.

Do Nothing
Wait for H1 2027
Manual workaround cost$10.8M
Remediation spend$20M+
Recovery timelineH1 2027
Node benefit$0
Net position-$30.8M
Remediate SAP Only
Spend More, Wait Same
Manual workaround cost$10.8M
Remediation spend$20M+
Recovery timelineH1 2027
Node benefit$0
Net position-$30.8M
Node + SAP Remediation
Parallel Layer
Manual workaround cost$0
Remediation spend$20M+
Recovery timelineH1 2027
Node benefit+$10.15M
Net position-$20.65M
The Decision · Already Made

What happens when Tennant activates?

The math is not close. The node costs $500,000 in year one. The manual workaround costs $10.8 million over the same period. The recovery timeline doesn't move. The node doesn't ask Tennant to abandon SAP remediation — it asks them to stop paying manual labor to do what a signal layer should do. Activation is the decision. The math is already on the page.

See the Activation Back to Command