Businesses ignore true cost of printing

Print costs can amount to as much as 3% of revenue, but organisations can save up to 30% of these expenses with effective managed print service providers.

So says Neil Rom, MD of Printacom, who points out that irrespective of the industry, employees and shareholders expect annual increases while shareholders expect returns on their financial investments.

Consequently, says Rom, many organisations are deciding to focus on what they are experts in, and employing managed print service providers to focus on their area of excellence, namely fleet optimisation.

Printacom notes that within many organisations, printing is classed as a lower-level administrative function, indicating that there is no purchasing policy, and most organisations have miniature ideas of the true cost of print.

The company adds that within many enterprises, print is not on the senior management's agenda, or within their control. Generally, it says, printers are not replaced until they are completely incapable of functioning, meaning that organisations are not taking advantages of technology commercialisation office and ad hoc purchasing can be expensive.

It is also Printacom's view that the latest devices, such as multifunctional printers, are largely ignored, with an impact on costs and productivity. The variety of the print fleet increases learning curves, and increases the cost of consumables and makes support unnecessarily difficult.

Printers are placed where they are valued or where there is space, instead of taking account of current and future needs. Colour printers are utilised for black and white, and laser printers for simple word documents, the company says.

According to Rom, printed knowledge is said to actively drive business forward, as sharing knowledge through printed documentation is both beneficial and hassle-free as printed information is readily available.

However, Rom notes that few organisations realise the total cost of ownership of their printing and imaging fleet.

He points out that this not only relates to direct costs such as hardware, supplies, maintenance and IT support but also indirect costs such as loss of employee productivity due to device downtime.

"Most organisations emphasise prevention of all expenditure, rather than managing the printing costs of their organisation, which is the most cost-effective option," says Rom.

"Many organisations believe that managing their printing infrastructure is costly and time consuming, while draining organisational resources. Due to this factor, organisations believe that employing a managed print service provider is even more expensive and draining to the resources of the organisation," he adds.

Rom explains that optimisation of the printer fleet and document workflow is central to smart managed document solutions.

He believes that by identifying the right service for business, the aim is to reduce printing costs, improve efficiency and document workflow and provide the latest technology to simplify business processes.

"Whether it is a small business that needs to reduce printing costs and the amount of time spent managing printers and devices, or an enterprise that is looking for a way to improve document workflow and efficiency, smart managed document solutions provides the answer.

"When it comes to small businesses, the number one concern is how to upgrade to a solid IT network that streamlines all IT-related work and increases output without affecting its small operational costs."

He is of the view that the challenge for an MPS provider is to host effective and customised solutions for small businesses, which are affordable and streamline workflow.

Rom also notes that often in the corporate environment, a variety of strategically planned processes are developed which will provide significant expense control which ultimately enhances productivity.

"One such strategy plan involves outsourcing the print fleet. Printed documents ensure that the process and productivity of the business is continuous. Consequently, the annual revenue of a company's consumed document production is an average of 1% to 3% in South Africa; and this expense is increasing in some organisations."

Most businesses have the systems in place to keep a tight control on their overheads; however, in an increasingly competitive world, being the leanest and most cost and environmentally efficient can be the difference between success and failure, he reveals.

"How much of your cash flow is tied up in consumables or invested in equipment and how much of your office is taken up storing paper and toner cartridges? What impact does your organisation have on the environment from old energy-hungry devices, wasted paper from unnecessary printing or consumables that are thrown away rather than being recycled?

"Continual monitoring and management of your printing processes allows us to proactively address any maintenance issues, including the timely supply of consumables. This reduces printer downtime as well as cutting the amount of money tied up in consumables and the space required to store them."

Through complete visibility of your organisation's printing behaviour you can implement print policies to reduce unnecessary printing, reducing not only your costs but also your impact on the environment, Rom concludes.