8 Signs Your Document Spending Is Out of Control

Document Management

For most companies, document management, and more specifically paper management, represents a pretty large—for the most part hidden—cost of doing business.

According to AIIM, over 4 trillion documents are generated annually and that figure is projected to increase by 20% per year. The average company spends about 4% of its annual revenues managing paper.

Armed with some information, you can begin to take action and formulate a plan of attack to effectively manage the problem.

Sign # 1: No Document Management Plan

If your company or organization doesn’t have a document management plan—or strategy—in place, you’re not alone.

Most companies don’t. Controlling printing costs and managing the effectiveness of printed communication are the kinds of things that just get lost in the shuffle of daily business. But they’re just the type of processes that you should be thinking about.

“How do the current processes affect our long term ability to compete; be competitive in the market and achieve our business goals and objectives?”

Implementing a plan based on an analysis of your organization’s document requirements can significantly increase your company’s ability to make the right decisions over time.

Having a plan in place helps guide decisions for printers, copy machines, fax machines, multifunction devices, etc. Without a plan, most companies end up with a montage—and that costs money.

Effective document management strategies can net as much as 30% to 40% in costs savings.

Here are some ideas for creating a successful document management strategy:

Analyze the current document process, including workflow process, types of documents used in the office, and methods of communication.
Make a clear distinction between mission critical tasks and secondary tasks. (i.e. billing customers is a mission critical task)
Look for opportunities to consolidate; printing volume; physical footprints (MFDs) and vendors. Tracking, paying and reconciling invoices costs money.
Look for high volume printing on cartridge based printers. These devices can be 4 times as costly to operate as multifunction devices.
Look for opportunities to change paper into electronic files. This can be as simple as a small scan to file or email system or as advanced as a company-wide document management system.
Involve individuals from diverse areas within the company; IT, operations, sales, accounting, HR…everyone will have a different perspective on the objectives and on the intended outcome.
Develop an ongoing commitment to re-visit the plan and make adjustments as necessary.

Sign # 2: Multiple vendors for document output devices.

Many companies and organizations acquire document output devices (copiers, printers, fax machines) as a result of a reactionary process.

For the most part, this involves buying an output device based on a specific, isolated need. Often the requirements are based on business conditions that have recently changed—but are not based on the company’s top-level document management strategy.

The resulting technology acquisition may not be sufficient when business conditions change again. The mix of machines and vendors can result in higher labor costs for tracking and ordering supply items. The increased inventory due to the need to have additional supply items in stock also becomes necessary, draining capital away from revenue producing activities. Quantity discounts are also not possible, since purchases are spread across multiple vendors.

Sign # 3: Devices that only output on paper

If paper is the only option users will, by default, produce and re-produce more of paper documents. There is a better way.

Today’s digital multifunction devices can output to a number of electronic document types. These electronic documents can be stored on a computer, a network drive or emailed directly to the intended recipient.

“Electronic documents are significantly more efficient to transport and store than their paper based counterparts.”

Office space used for filing cabinets can be recovered for more productive uses. Finding stored documents is much faster than digging through traditional filing cabinets and bankers boxes. Many electronic documents can be distributed, read and filed without ever being printed. This saves money on printing costs and increases the speed and efficiency of information transfer.

Finding and eliminating abuse of print devices can also have a positive impact on cost and efficiency. When users know that their print volumes are being tracked, there is less likelihood that they will engage in abusive print practices.

Sign # 4: Inkjet printers in the office

Inkjet printers are cheap to buy. Some computer stores even give them away via rebates and other offers. In the end, inkjet operating costs can be up to ten times the cost of today’s more efficient output devices. Since inkjet devices are so inexpensive, many employees will acquire these printers “under the radar screen”.

The machines can often be reimbursed via expense accounts or with a company credit card at the local office supply.

“The end result is a very expensive method of producing documents.”

With operating costs up to ten times the cost of today’s more efficient output devices, any inkjet output application should be looked at closely.

Sign # 5: Too many devices

If you see printers on desks, at the end of the hall, around every corner and in cubicles, chances are your organization has too many devices to be very efficient.

While the ratio of devices to individual employee differs depending on industry, a typical best practices target is one device for every five or six employees. This ratio will help all aspects of document lifecycle management run more efficiently.

Too many devices also rob valuable floor space. Today’s multifunction devices can scan, print, copy and fax, all while producing printed output for a fraction of the cost of their cartridge-based cousins.

Sign # 6: Printers and copiers in the same general location

Device redundancy is a real efficiency killer. If you see printers and copiers located in close proximity to each other, it is typically a sure indicator that neither machine is running at optimum levels.

Typically, machines in this configuration are older, which also increases the likelihood that the combination is costing too much. Today’s digital multifunction devices can easily and efficiently produce both print and copy volume. Not only are these new devices more efficient, they often are faster, which results in increased productivity and user satisfaction.

Sign # 7: No Monitoring or tracking

Knowing the amount and types of documents being printed are key components to understanding the need to change. If you’re like most companies, these are hidden, embedded costs of doing business. Frequently these costs come out of multiple budgets or even hide inside of generic “supplies” budgets.

“In this situation, not knowing is the real enemy.”

An understanding of the organization’s printing workflow can provide insight into how many output devices are necessary and what types of devices are best suited for each purpose. Finding and eliminating abuse or waste can also have an effect on cost and efficiency.

“When users know that their print volumes are being tracked, there is less likelihood that they will engage in abusive print practices.”

As a whole, people tend to respect what is inspected. Print tracking software is available that can identify and track each printer on the network. This can provide valuable information about the type, volumes and nature of documents printed. Some of this software can automatically determine the effective cost per page based on how much coverage is present in each document.

Sign # 8: Old & Outdated Devices

The presence of any analog copier represents a significant opportunity to reduce costs. Older analog copiers utilize far more mechanical parts than digital copiers, resulting in higher operating costs.

Reliability is also a factor, since older copiers can breakdown more often, negatively affecting office productivity. Even if the equipment is covered under a maintenance program, the real loss of productivity represents a cost.

Today’s digital multifunction devices feature lower operating costs. Also, since most digital document devices can be connected to a network, they can perform double duty as copiers, printers, or even network fax machines. In addition to lower operating costs, digital multifunction devices also contribute to increased document efficiency through the use of document scanning, footprint reduction and consolidation of redundant devices.

Your Document Efficiency Checklist:

Take a walk around your office and use this list to determine if your document costs are out of control:

No document management plan or strategy
Multiple vendors for document output devices.
Devices that only output on paper
Inkjet printers in the office
Too many devices
Printers and copiers in the same general location
No document monitoring or tracking
Old & Outdated copiers

For more information:

or call RJ Young Company:

(615) 255-8551
(800) 347-1955

RJ Young Company is a Nashville based office products dealer. We’ve been in business since 1955 and we’re the largest independently owned dealer in the southeast. (find out more about RJ Young)

Our business is document output, input and the surrounding workflow.