Business Case - Savings for the Nation

Many companies have already come to realise that if they cannot measure the cost of printing, they cannot manage it.

At a time when the pressure to reduce company expenses is greater than ever, the output environment presents an outstanding opportunity to cut costs. More and more organisations are taking the time to look at their printing environment and ask how they can identify opportunities to save money or boost productivity.

According to a spate of recent studies the lack of a comprehensive printer management strategy leads to higher costs and lower productivity. Separate studies by Gartner, IDC, and CAP Ventures have concluded that businesses who actively manage their printing infrastructures stand to reduce their overall cost of printing by up to 30 percent.

Given that Gartner calculates print spend accounts for 1 - 3% of a company’s annual revenue, the cost can be substantial. For a company with an annual revenue of £1 billion this equates to £10 million – £30 million.

IDC conducted a further study that demonstrated significant cost savings were achievable. Its findings underlined the value proposition of an Output Management Service by estimating the potential cost savings and productivity improvements a business could expect by applying this approach:

23% average overall cost savings
40% reduction in IT help desk calls
25% cost reduction in consumables
20% cost reduction in unscheduled maintenance
10% cost reduction in installation and upgrades
5% cost reduction in acquisition

This often serves as an eye-opener for organisations that previously have had no idea how expensive the output environment had grown to become.

Indeed, other estimates of output costs are even higher. According to CAP Ventures, “Research implies that beyond toner or paper, the total cost of documents can consume up to 15 percent of an organisation’s annual revenue.” and PC Dealer states that “Documents account for 40 percent of a company’s labour costs and for 15 percent of revenue – more than R&D.”

A thorough Print Investigation is the only way to initiate these significant cost savings, as if there are no baseline measures, there can be no attempt to manage cost.