Untapped Opportunities

Previously, I looked at some recent trends and challenges organizations face in streamlining their accounts payable (AP) process in order to add business value. In this post I’ll highlight how Canon Business Process Services (CBPS) offers comprehensive AP services that help the AP function significantly reduce the laborious work of processing invoices, freeing up budget and time to work on more important, value-added business activities. 

Our AP services cover the entire invoice lifecycle from receipt to payment.  This includes providing the technology, people, and facilities to process invoices and travel and expense (T&E) claims.  CBPS can assume an organization’s clerical staff on-site or provide the staff in our facilities. We integrate our technology with a client’s to optimize the AP workflow end to end.
CBPS AP services are scalable and can be implemented step-by-step to add the right level of enhancement that makes sense for the client’s process. Following are some examples.

Invoice intake centralizes the receipt, scans, and converts paper or digital invoices into data and images that are routed to the client’s ERP, AP workflow, and content management systems. 

Invoice processing validates the invoice and completes the approval process, whether it is a purchase order (PO) or non-PO order item.  Approval is completed using staff assisted by automated matching and workflow.  Approval time may be reduced from weeks to days.

Invoice payment services include both electronic and check payments.  CBPS staff reviews the payment file and present it to the client for final release.  We securely print and mail checks in accordance with client procedures and controls.  CBPS also manages bank payment files and reconciliation.

AP support services include vendor maintenance and inquiry help desk, maintenance of AP records, reconciliation and analysis, reporting, maintaining policy, procedures and internal controls as well as administering programs such as regulatory compliance for T&E costs and IRS reporting

Flexible delivery options offer the capability to provide our services at client sites or through CBPS Business Processing Centers located in the US and offshore. 

Streamlining the invoice process to reduce cycle time and cost spans policies, procedures, and discipline in procurement and receiving drive the number of exceptions in the invoice process. That’s why when working to streamline the invoice process, CBPS experts begin with the procure-to-pay (P2P) process, such as centralizing the receipt of paper invoices and scanning them either in our facilities or in client locations. 

Using automation to reduce errors, improve productivity, and lower cost is supported by the CBPS invoice automation platform, which can be integrated with virtually any ERP, ECM, and P2P systems.  Automating the capture, data conversion, validation, matching, and workflow reduced the invoice processing time to days. 

Using automation to improve compliance with regulations such as Sarbanes Oxley Act is necessary and important.  Our AP services provide consistent workflow processes that help maintain accurate records.  By overcoming gaps in tracking, accessing, and updating data, the system helps clients avoid compliance issues.

In my next post I’ll highlight two client experiences using CBPS AP services. In the meantime, for more information on our other document processing services, as well as insight on topics such as digital workflow management and best practices in managing electronic documents, feel free to visit our website at http://www.cbps.canon.com

In this and my next few blog posts I plan to spotlight how the accounts payable (AP) function is evolving. This includes looking at some current trends and challenges and how Canon Business Process Services (CBPS) works with clients to improve their AP processes.

One thing that has changed over the past few years is that now CFO’s expect more than operational excellence from the AP function.  AP was long considered to be a back-office cost center. Now it is evolving into a strategic business enabler charged with the responsibility to reduce costs, strengthen compliance and controls and ensure that payments are accurately and quickly reported. The AP function also now partners with the procurement and receiving departments as well as with business units to add business value by streamlining the procure- to-pay (P2P) process.

To accomplish these responsibilities, the AP function must streamline the invoice process, update or implement new technology, and like other parts of the organization, implement successful strategies such as outsourcing non-strategic work and migrating from paper to digital workflow.

Accomplishing these goals means overcoming some challenges. For instance, in most organizations, the majority of non-purchase order (PO) invoices and travel and expense (T&E) reports still enter the AP process in paper form.  From receipt to payment, manual touch points are required to convert and validate data, to complete approval through the PO and non-PO process, and to pay.  Staff is challenged to effectively manage manual data entry, duplicate invoice copies, special payment requests, frequent calls for payment from suppliers and staff, and with paper recordkeeping.

Moreover, decentralized receipt and manual routing prolong payment time such that a substantial number of invoices cannot be paid on time.  Discounts are lost.  Late fees are incurred.  Another key challenge: Accrual of outstanding liability is guesswork at a time when the CFO and CEO are required to endorse for the accuracy and integrity of financial reporting under Sarbanes-Oxley Act.

And on the strategic front, there is often not enough time and staff to work on process improvements, to implement automation, and to work on aligning procurement and AP practices to ensure payments are made within contract terms, exceptions are minimized, and discounts and rebates are realized.

At the operating level, AP managers are pressured by management to reduce the total cost of AP; by business units that demand more analytical support; by suppliers that want faster payment; by procurement , which wants an integrated procure-to-pay process (P2P), and by internal audit, which insist on less errors and tighter controls.

Finally, while all organizations use technology, the technology they have is not designed to eliminate the manual work of processing invoices and T&E claims.  Most organizations operate multiple ERP systems with or without invoice workflow.  Manual labor is required to enter data into these systems as well as to secure approval and resolve exceptions. The use of scanning and digital content management technology is becoming more prevalent.  However, most organizations still do not use automation to capture, validate and match data as well as to obtain approvals.

In my next post I’ll highlight how CBPS solutions are designed to help overcome these and other AP process challenges. In the meantime, for more information on the range of our document processing services, as well as insight on topics such as digital workflow management and best practices in managing electronic documents, feel free to visit our website at http://www.cbps.canon.com.

Managed Print Services (MPS), which centralizes responsibility for an organization’s print and copy operation, can yield solid business benefits. These can include reducing costs by as much as 30 to 40 percent over traditional print fleet management approaches, as well as increasing efficiency, security and sustainability enterprise wide.

Yet many organizations do not realize these and other benefits because their print output management process is limited primarily to equipment costs. To help these enterprises implement and maintain more effective MPS programs, Océ is offering recommendations that are detailed in our new white paper: “Advancing Managed Print Services: Four Guiding Principles for Optimizing Office Document Print Output.”

These guiding principles for MPS include:

Step One: Plan the entire output infrastructure and how it should be managed. This step should be guided by a thorough assessment of the company’s current and projected document management output needs, and the creation of a map that guides the operation from its “current state” to its “future state.”

Step Two: Implement resources including superior tools, organizational infrastructure and processes that will support an optimized MPS program. This includes appointing responsible management and embedding an onsite team to support the process.

Step Three: Improve the MPS program through digital equipment functionality, and adherence to methodologies that can be integrated to enhance workflow, information management, and compliance. The program should create a variety of detailed reports on program performance that measure savings and efficiencies, as well as specific performance deltas from the original plan laid out in step one.

Step Four: Sustain cost-savings and the environmental sustainability initiatives through practices such as: consolidating equipment, reducing page volume via duplex (double-sided) printing, and purchasing ink in bulk.

For more information on document process management strategies and best practices that can help reduce printing costs, as well as to feel free to download our new white paper,  visit http://www.ocesolutions.com

Every month or so, a webcast or article about digital mail – converting paper mail into digital – catches my eye.  The discussions are usually about the benefits of digital mail and how wonderful it is to work with images instead of paper. The discussions, however, often leave out many of the realities involved with implementing an effective system.  One reality is that most companies do not have a mail opening policy that permits the mail center to automatically open, scan, and deliver (route or deposit in a content management database) the mail.  So, if your organization does not have a mail opening policy, how do you implement digital mail if you want to realize the benefits of converting paper to digital?  The answer is to launch a true digital mail system – one that actually addresses this problem and provides more than just scanning software with routing capability. 

A true digital mail system gives you the "open/do-not-open" safeguards.  It provides the collaboration between the mail recipient and the mail center in that the recipient makes the decision for the mail center about what action to take.  These actions include open and scan/route; do not open, deliver via interoffice mail; destroy, this is junk mail; or this is not my mail, please re-route etc.

Digitizing inbound mail and suppressing unwanted mail is a great idea.  Implementing a solution for all inbound mail, not just for pre-sorted mail via a PO Box, is the challenge. 

What do you think?  Can automation meet the policy challenge?  To learn more about how electronic mail management and other document management strategies can help your organization succeed, feel free visit http://www.ocesolutions.com

Next week I will present a webinar designed to help organizations better understand the electronic discovery (eDiscovery) process, including a look at how the procurement function can play an important role in cost-effectively sourcing an electronic discovery service.

The webinar, hosted by the Sourcing Interests Group (SIG), is tailored for SIG members including sourcing and outsourcing professionals, advisory firms and executives interested in optimizing the benefits of outsourcing. SIG is a membership organization that has served sourcing and outsourcing professionals from Fortune 500 and Global 1000 companies for over 20 years.

The webinar will be presented on May 8th at 2 P.M. ET.  Highlights include the following:

• Understanding challenges and opportunities connected with the eDiscovery process
• Key elements of the cost structure of an eDiscovery project
• Insights on where and how eDiscovery costs can be reduced
• Case history examples of strategies and continuous improvement methodologies used by companies  to cost-effectively manage multiple eDiscovery projects

Complimentary registration for the webinar is available by clicking on the following link: http://bit.ly/IAsUBl. For more information on eDiscovery solutions and document process management best practices, feel free to visit http://www.ocesolutions.com.

In my previous column, I spotlighted a webinar I planned to present, hosted by the Sourcing Interests Group (SIG). The session focuses on helping organizations maximize the value of outsourcing back-office support services such as digital imaging management, mail center management and print/copy and records management center best practices. You can playback the webinar by clicking on the following link: http://bit.ly/I6z8Wy.

Once again, key highlights of the webinar include:

• How organizations are maximizing the value of outsourcing their back-office support services
• Important considerations that differentiate onsite contracted services from services that are delivered offsite and offshore
• Key questions to ask in a “request for proposal” (RFP) when evaluating suppliers or negotiating price
• How combining onsite administrative support services with offsite and offshore business process outsourcing services represents a new cost-effective and flexible delivery model

For more information on advanced outsourced document management strategies feel free to visit http://www.ocesolutions.com

Next week I’ll be presenting a webinar designed to help organizations maximize the value of outsourcing back-office support services such as digital imaging management, mail center management and print/copy and records management center best practices.

The webinar, hosted by the Sourcing Interests Group (SIG), is tailored for SIG members including sourcing and outsourcing professionals, advisory firms and executives interested in optimizing the benefits of outsourcing. SIG is a membership organization that has served sourcing and outsourcing professionals from Fortune 500 and Global 1000 companies for over 20 years.

The webinar takes place on March 13th at 2 P.M. ET.  Highlights include the following:

• How organizations are maximizing the value of outsourcing their back-office support services
• Important considerations that differentiate onsite contracted services from services that are delivered offsite and offshore
• Key questions to ask in a “request for proposal” (RFP) when evaluating suppliers or negotiating price
• How combining onsite administrative support services with offsite and offshore business process outsourcing services represents a new cost-effective and flexible delivery model

Complimentary registration for the webinar is available by clicking on the following link: http://bit.ly/zSCosI

For more information on advanced outsourced document management strategies feel free to visit http://www.ocesolutions.com

On January 24th Mark Michonski, Director of Marketing at BRT, Inc. and I presented a Sourcing Interests Group (SIG) webinar titled: “Five Steps to Conquering Invoice Processing and Optimizing Cash Management.” The presentation focuses on how invoice processing continues to be a pain for most organizations that receive paper invoices and process them manually or with limited automation. Too much management time and too much labor are spent for too little value. This webinar discusses five critical steps that have been proven to conquer invoice processing challenges and move organizations from a tactical accounts payable (AP) mode to a strategic one. We also offer examples from organizations that have implemented AP outsourcing and automation, and we highlight the best features, capabilities and practices that deliver the most benefit when it comes to optimizing invoice processing and cash management systems.

You can play back the hour-long webinar by clicking on the following link and entering some basic registration information: bit.ly/wJgrXQ 

For more information on digital workflow management and related document management strategies that can help your organization meet its, feel free to visit www.ocesolutions.com.

In my experience many organizations and service providers mistakenly equate business process imaging (BPI) with basic scanning activities. The latter includes, for example, document receipt, prep and scan activities. BPI includes these activities, but provides more. We define BPI as a value-added, repeatable service that we provide to manage front-end paper-to-digital conversion activities that are part of an ongoing business process, such as insurance claims processing. These front-end conversion activities range from document intake/preparation, imaging/data entry and OCR repair to transaction setup/coordination activities such as verifying data on an insurance claim. All of these front-end activities usually include pushing digital images into client business process workflows, interacting with content management systems, business applications, ERP and other systems.

Most importantly, a BPI service adds value, helping companies eliminate production delays, enhance office document control, streamline document process output, improve accuracy, reduce cost and achieve other business goals. Our approach, for example, is to manage all steps within the scope of the outsourced process activities, ranging from the front-end document conversion activities to those that can provide business process improvement and integration with client workflow.

BPI services are ideally suited for mid- and large-size enterprises that often deal with manual, paper-intensive, complex and/or repetitive front/back office business processes, particularly in the financial services, insurance, and manufacturing industries. The business processes often involve complex documents that might include several enclosures including an application and payment information. Additionally, document intake volume can be highly variable, such as a company receiving thousands of documents early in the week that diminishes to hundreds of documents later in the week.

When implementing BPI, in our approach analysts initially consult with a client to assess the company’s business process and understand how the data output will be used to achieve a business goal. Next, our team develops a customized operations outsourcing model and transition plan. OBS monitors, reports and evaluates quality management according to agreed-upon SLAs and KPIs, applying lean Six Sigma.

An important element to consider when deciding to outsource BPI services is whether the provider can deploys a blended delivery model that combines distributed onsite and centralized offsite U.S. document conversion with offshore operations that offer cost-efficient indexing and coding services. The reason for considering this capability is that a blended delivery model offers a flexibility and value that is important to many organizations, particularly large, global enterprises.

In my next blog post, I’ll highlight two examples of how BPI can help organizations realize solid business benefits. In the meantime, for additional information on document process and digital workflow management best practices, feel free to visit our website at www.ocesolutions.com.

I was reading a recent study on Managed Print Services (MPS), "Examining the Print and Document Management Market" (bit.ly/rnPJWG) issued recently by CompTIA.  The study confirms the trend that more organizations are adopting an MPS strategy and that the larger organizations tend to adopt MPS more than smaller ones.  This trend is not new.  Large organizations are increasingly implementing MPS best practices, such as onsite and remote support and the latest management tools, in order to realize a key benefit of MPS – to reduce printing costs.

What is interesting is that while the study surveyed “400 IT firms” and 400 IT professionals responsible for MPS (the “buyer” side), the findings were similar to other MPS studies including industry analysts like Gartner and IDC. ComTIA’s survey results were also similar to our own client experience over the past ten years. 

Organizations have reached the point where they realize that the cost of document output is too high and they can do something about it.  Typically, outsourcing the responsibility for managing office document output and print/copy center operations to a services provider like Océ Business Services can cut costs significantly, assuming these processes were not being efficiently managed.  The key thing to remember is that the ability to reduce copy and print costs are achieved from better managing the print output over time – not from replacing the equipment.  And, process management can begin at any time independent of the equipment refresh cycle because plans and decisions have to be made as the equipment reaches end of its useful life.

For more information on how to reduce printing costs and document management strategies that can help your organization meet its business goals, feel free to visit www.ocesolutions.com.

On May 3rd I and an Océ managed print services (MPS) specialist presented a webinar titled: “Writing the MPS RFP.” A definition of MPS is included in the webinar presentation, which can be downloaded by clicking on the following URL: bit.ly/mjPD3I. (RFP stands for “request for proposal.”)

What surprised me was that, based on the high attendance, organizations are obviously hungry for information about MPS. More importantly the attendance suggests companies are actively planning or implementing MPS, a trend revealed by answers to one of the poll questions that asked: Has your organization centralized office print/copy responsibilities and budget? In other words are you taking any steps to get your organization on the MPS track?  Seventy percent responded “yes,” stating that they are consolidating the purchases under procurement. Forty percent responded “yes,” specifying that they are outsourcing print responsibilities to one vendor or several service providers.

Twenty percent responded “no,” but asserted that MPS is a possibility being considered because some organizations understand that they can potentially reduce copy and print costs. This response is in line with what we are observing at our clients. Aware that cost reduction is possible by implementing MPS, they are moving from not managing or loosely managing only print/copy equipment to the holistic approach of managing the entire print/copy/fax/scan process.  

Another poll question asked: “Assuming you decided to implement an MPS program, when is a good time?” Twelve percent responded “when replacing equipment;” 35 percent responded “at any time;” and 52 percent responded “only when there is a corresponding cost reduction to offset the cost of hiring a service provider.” We were pleased to see that about one third understand that implementing an MPS program is like implementing a personal health improvement program. It is a good idea to start at any time because reaching an optimized MPS state, like achieving maximum health, is a process that unfolds over time and begins with making a series of decisions to go forward.

Implementing MPS when equipment needs to be replaced is what most organizations do. The problem, however, is that it’s rare for all the equipment to be replaced at one time. One survey was surprising; 52% of respondents are not willing to invest anything up front to realize greater savings long term. I think that view is a mistake because it is hard to find an opportunity to switch out enough equipment at one point in time to justify the incremental cost of labor and tools. So what happens is that companies wait, and in doing so the first equipment generation costs about 30% more than necessary without the companies realizing it.

For more information on how to reduce printing costs and document management strategies that can help your organization meet its business goals, fee free to visit www.ocesolutions.com.

In my previous post I outlined the challenges a large manufacturing company was facing with its existing print/copy operation.

The manufacturer teamed with Océ to design a managed print services (MPS) program that would lower costs and paper usage, reduce the space taken up by redundant equipment, benefit the environment, and streamline the company’s document management processes. This would include eliminating as many single-function desktop printers as possible and replace them with shared MFDs (multi-function devices that combine print/copy/fax/scan capabilities into one unit). The initial program, which was rolled out at five of the company’s U.S. locations, cut costs by approximately $750,000. The company plans to expand the program to over 100 of its plants and offices within two years.

To date Océ has networked an additional 30 percent of the company’s MFD fleet (approximately 1,000 machines) and has worked with the manufacturer to retire hundreds of desktop printers and fax machines. These changes eliminated the purchase or lease cost as well as the maintenance and electrical expenses associated with these devices. Océ also created a print/copy help desk and initiated a fleet monitoring program to proactively manage service and supply requests as well as obtain real-time meter reads without needing to contact the manufacturer. Creating the help desk and eliminating redundant equipment removed the burden of managing print/copy supplies from the IT department and significantly reduced the number of devices the department manages. 

The networked MFDs are significantly increasing efficiency and helping the company to meet its environmental goals. MFDs reduce paper usage by offering the ability to print on both sides of the paper and scan documents that are sent to the employee’s email. The employee can then send the document via email, which is less costly and more secure than faxing. MFDs enhance printing security by offering a user authentication system, whereby the company’s employees can enter their PIN (personal identification number) at the device before their documents are printed.

As this one example illustrates, MPS program, if done right, can yield solid business benefits such as improved office document control. For more information on print fleet management and other document process management strategies, feel free to visit www.ocesolutions.com.

Managed Print Services (MPS) involves professionally managing your print and copy process as a service, either internally or on an outsourced basis. MPS helps organizations centralize the print and copy responsibility and accountability, which often drives cost savings and improved office document control.

In this and my next post I’ll spotlight an example of how a major manufacturer implemented an MPS program that provided financial and efficiency benefits.

The manufacturer was not achieving the cost-effectiveness and efficiency it wanted from its existing print/copy fleet, which totaled over 900 standalone copiers and MFDs (multi-function devices that combine print/copy/fax/scan capabilities into one unit). The company tapped Océ to help create a more cost-effective, efficient and eco-friendly print/copy management program. 

The manufacturer’s print/copy operation, which included hundreds of standalone copiers and MFDs located in office and plants throughout the country, was facing a number of challenges. This included the fact that many of the company’s MFDs were not networked; the devices were functioning basically as standalone copiers or fax machines. Consequently, company employees were unable to utilize the print, copy, fax and scanning capabilities these machines offered.

Compounding these challenges was that a significant amount of redundant equipment was driving unnecessary costs. Un-networked MFDs were often located near standalone copiers, standalone fax machines and standalone scanners.

These practices were raising costs, due to purchasing more print/copy supplies than the company required, and lowering efficiency because employees were not utilizing the capabilities offered by a networked MFD environment. Additionally, the print/copy operation was putting extra stress on the company’s IT department. Designated employees would monitor supplies and submit orders to the IT department, which was required to replenish toner, paper and other items.

In my next post I’ll highlight the solution and the results we were able to achieve working with this company. In the meantime, for more information on print fleet management and other document process management strategies, feel free to visit www.ocesolutions.com.

Last week I attended the Sourcing Interests Group (SIG) 2011 Spring Summit.  The SIG Summit attracts VPs and Managers of procurement and strategic sourcing from large organizations.  According to SIG this was its 20th annual Summit and it was the largest.

As I returned home I reflected on the event break-out sessions and the tone of the one-on-one discussions between procurement professionals. Unlike the typical conference where attendees seem to pass through, SIG provides an environment where people connect more and learn as much from each other as they do from the presentations.

While most of the breakout sessions are primarily shop-talk, in general the focus was on optimizing the procurement function to help reduce costs. In a business climate that constantly challenges revenue growth, companies are turning to procurement and strategic sourcing to help provide cost reduction strategies and ideas. Based on the sessions I attended, there was no shortage of examples of this trend. From implementing new software tools to initiating outsourcing strategies, procurement professionals are often heroes that make significant contributions to the bottom line.

The Summit also featured six workshops on the first day. My colleague Dr. Michael Field and I had the opportunity to contribute with a 90-minute workshop titled:  “Document Process Management in The Digital Era.” Our mission was to educate session participants about the document lifecycle process. Additionally, we sought to provide practical information and proposal templates that would help procurement professionals prepare a “request for proposal” for document process management services (e.g. mail, print, scanning and records management) faster and with less effort.  We were pleased at the number of people that attended and surprised by how many had personal experience outsourcing these services. It confirms what we are seeing and what the Summit presentations suggest, which is that procurement is involved in the sourcing and outsourcing of many key processes.

For a copy of the workshop presentation, please contact me at ted.ardelean@oce.com. The SIG Summit information can be found at www.sig.org. For more information on document processing services as well as document management strategies and best practices, feel free to visit our web site a www.obs-innovation.com.

In my previous column I focused on four important questions to ask when evaluating your Managed Print Services (MPS) program. Below are four more ways to evaluate your current program. Asking these questions can go a long way in helping your organization to reduce copy and print costs and realize other benefits from print fleet management best practices.

5. Does your MPS program provide an initial in-depth assessment?
An in-depth assessment is recommended before starting an MPS program to establish a baseline of your fleet’s current state.  The assessment should provide a roadmap for moving from you fleet’s current state to its future state.  A list of the existing equipment to be kept, re-deployed, and retired should be one output.  A map of current equipment, utilization and device-to-user ratios is another output.  You can also create several future-state recommendations based on desired outcomes (such as total costs) along with best-of-breed equipment specifications.

6. Will your MPS program re-balance and optimize the fleet continuously?
Maintaining an excessive amount of equipment is expensive. Determining precisely how much equipment is needed, including the requirements of each location, involves delicate measurements and frequent reviews. Idle or overused equipment can be expensive in terms of dollars or user satisfaction.  An MPS program should include periodic reviews (quarterly or annual at the minimum) by experts who can recommend optimization changes as necessary.

7. Will your MPS program relieve the IT help-desk from print-related issues?
According to IT help-desk studies, a significant number of calls to the IT help-desk (approximately 20%) involve relatively basic issues related to toner, machine service, etc.  An MPS program should relieve the IT help-desk from these calls by providing an 800 number to the MPS call center, ideally backed by on-site and remote call center support, for resolving these issues.

8. Does your MPS program provide staff and subject matter experts to manage the MPS process? 
Buyers often forget there is a lot of behind-the-scenes work that must be done to manage office print/copy/fax/scan processes. Here is a partial list of MPS responsibilities that do not come with basic equipment maintenance:

• ordering supplies and re-stocking consumables on a daily basis
• providing preventive maintenance and first-level response
• managing multiple OEM service providers
• managing procurement, which includes consolidating and standardizing contracts and rates as they expire
• overseeing the budget
• verifying invoices and resolving bill disputes
• coordinating equipment moves/changes
• responding to user needs and conducting user satisfaction surveys
• coordinating with IT
• reporting performance and financials
• planning ahead for effective program management
• reviewing device utilization and overall performance
• making optimization decisions
• managing assets (maintaining equipment lists and data, planning and coordinating moves, adds, changes and disposals)

Feel free to visit our web site (www.obs-innovation.com) for strategies on how to contain copy costs and enhance document management processes throughout the document lifecycle. The AIIM (www.aiim.org) and ARMA (www.arma.org) web sites are also good sources of information on document and records management topics.

 

In this and my next column I’m focusing on important questions to ask when evaluating your Managed Print Services (MPS) program. MPS, as the name implies, concerns managing your office print and copy process as a service. You can manage the process internally or outsource it to a trusted service provider. MPS can centralize the print and copy responsibility for the entire office, which helps to reduce copy and print costs as well as streamline the operation of your print fleet management program. Here are the first four ways to evaluate your current MPS program:

1. Does your MPS program put the emphasis on “management” or on “print”?
A successful MPS program requires people, process, and technology (hardware and software).  If the program’s focus is on the equipment to deploy, including a break-fix contract price, terms and supplies, but leaves out the organizational structure and process performance, then you do not have a true, comprehensive MPS program in place. A more effective MPS program will focus on who will be accountable for results, how to manage the process that will deliver the results, and what equipment to use for print/copy/fax/scan processes.

2. Is all the equipment managed equally?
If your MPS program does not manage all the equipment in your environment equally, no matter who owns the equipment or what OEM provides the maintenance, then you have a fragmented print service operation that is subject to a lowest “cost-per-copy” contract and you are probably unaware of many higher, hidden costs.

3. Is there one point of accountability and one invoice to pay?
One defining characteristic of a well-rounded MPS program is a single point of accountability for the entire office print/copy/fax/scan service.  By centralizing the responsibilities for managing all of the equipment, people and processes, you can leverage procurement scale, standardization, budget consolidation, and have one consolidated invoice to pay.

4.  Are the MPS tools installed and used?
One building block of an MPS program is the ability to monitor fleet activity (i.e. collecting output, service and cost data) as well as automate processes (proactive machine faults/alerts, meter collection and reporting overall performance.) Technology tools are necessary in order to meet these goals. These tools include, at the very least, an electronic monitoring system, an MPS call center application and a reporting system. Assessment, user behavior modification and MFP workflow solutions tools also can help.

I’ll highlight four more questions in my next column. In the meantime, feel free to visit www.obs-innovation.com for more information on print fleet management as well as how to better contain copy costs and enhance other document management processes. The AIIM (www.aiim.org) and ARMA (www.arma.org) web sites are also good sources of information on document and records management topics.
 

I just returned from the Document Strategy Forum in Chicago, which was co-located with the Business Forms Management Association conference at the Hyatt Regency O’Hare. My own presentation focused on strategies to reduce copy and print costs, including a special focus on optimizing office fleet management processes by migrating to a Managed Print Services (MPS) model.

However in addition to my own focus, I was struck by the wide ranging topics featured at the Forum. These spanned document process management strategies, new technology applications, process workflow, office print and much more. Mail management received strong attention; in fact the Tuesday breakfast keynote address highlighted some of the ways the USPS plans to deal with declining mail volumes.

Another thing that caught my eye was the solid attendance at presentations that highlighted “paper to digital conversion” topics. In today’s business and economic climate, organizations are being driven by internal concerns and regulatory compliance issues to better manage their critical records. Many companies are becoming aware of the hard dollar and soft dollar costs associated with digitization projects.  

Finally there was an excellent presentation by Craig Le Clair of Forrester, which focused on trends and technologies in the document processing market. Craig emphasized that the integration of more sophisticated technologies, such as social media, collaboration, analytics and mobility, teamed with advancing demographics continues to pressure the industry for new, more efficient solutions.

For additional information on document management strategies feel free to visit our web site at www.obs-innovation.com

 

Companies today are always looking for cost-effective strategies to meet current business challenges by containing costs and increasing efficiency. One such strategy in the document process management arena – whether managed internally or outsourced – is to optimize the printer, copier and fax fleet. It’s a move that can provide significant cost savings. According to Gartner, by better managing their office printing and copying, these companies can reduce their document output spending and copying by up to 30 percent (“Q&A for Overcoming Obstacles in Managing Office Printing,” Ken Weilerstein, March 2008). That means a two billion dollar company spending an estimated $60 million a year in document output can potentially realize up to $18 million in savings.

Here are four fleet management strategies that can help drive down costs while increasing efficiency.

Standardize Models
An organization can waste money by deploying more printers than it actually needs, compounded by too many makes and models, which can run into the hundreds, each with its own drivers, cartridges, contracts, and supplies. Significant savings can be achieved by standardizing machines to a few models. A company can still benefit from this strategy even if, in order to standardize, it has to pay to have existing contracts amended. Either way, the company will spend – to support machines it’s not using or to initiate new contracts. At least after re-negotiating and standardizing, the company could have a new fleet that offers the latest technology, is better aligned with its business needs, and even returns a net savings over time.

Reduce Desktop Printers
Given the current economic climate, now is a good time to make the business case for reducing the use of personal printers and moving document output to workgroup MFPs (multifunction peripherals that combine print/copy/scan/fax capability into one machine that is shared by employees). Although inexpensive to purchase, desktop printers can have double or triple the supply costs of workgroup MFPs. Many companies are in a position to initiate this strategy relatively quickly by changing their policy of supporting desktop printers and helping employees migrate to the existing, shared MFP environment. The main challenge is one of modifying employee behavior. Companies can meet this challenge by clearly communicating the business reasons for the new policy and making it as easy as possible for employees to transition to the MFPs.

Condense Print Volume
Another way to lower costs is to reduce the volume of printed pages by leveraging special features of MFP technology. One of these features is user authentication. As many as one in 10 documents that are sent to the printer are not collected or printed again before collection to correct user errors. Companies can reduce ad hoc print costs by up to 10 percent by implementing a user authentication system. With this system, documents are not automatically printed but sent to a password protected mailbox. This feature can reduce printed pages because employees often don’t need to print every document they send to the MFP. (For example, a document was updated so the employee only needs to print out the updated version, not the previous one.) Additionally, most business documents don’t need to be printed only on one page and in color. A company can decrease paper use by up to 50 percent by making duplex printing (printing on both sides of the page) the default setting. Since color prints can cost three to five times more than black and white, companies can save by also defaulting to black and white printing.

Review Contracts
Many companies still have “evergreen” contracts for office print/copy equipment that they have forgotten about and may no longer need. This can result in accumulating machines that are under-utilized and unnecessarily spending thousands of dollars per month.  A “current state” assessment can clear up the mess by inventorying and mapping the machines’ output volume and costs.  The assessment can help identify which machines should be kept and which should be discarded.  Within a matter of weeks, an organization can make decisions about how much money it can save, where, how and why instead of chasing and disputing bills.

For more information on print fleet management best practices, feel free to visit our web site (www.obs-innovation.com). Additionally, feel free to download our survey, Driving Business in a Tough Economy (click the box in the right hand column of the page), which offers some interesting findings on office document control and related document management strategies.
 

I’ve mentioned that the AIIM Digital Landfill blog (aiim.typepad.com/) featured eight “fast facts” about the state of the ECM industry. At the top of the list was the fact that lowering costs had replaced compliance as the main driver for investments in document and records management.

Our own document management industry survey (Driving Business in a Tough Economy) and discussions with clients indicate that reducing costs is still a key goal. Many executives say that their company plans to reduce operating expenses and improve cash flow. The executives agree that improved document management strategies across the document lifecycle (creation through disposal) can help meet these objectives. 

One of these strategies – which can save a surprising amount of money – is to eliminate printing banner pages. A banner page is the extra “header” page that prints before a document prints with the user’s name. Gartner (www.gartner.com) estimates that organizations can reduce their consumables cost by up to 20 percent by eliminating banner pages from office print jobs. In a typical office, banner pages can represent up to a quarter of pages the total page printed. A 1,000 person organization could cut up 1.6 million pages and save $33,500 per year by eliminating banner page printing (“Cost Cutting Initiatives for Office Printing,” Sharon McNee and Ken Weilerstein, Feb. 2008.)

Moving from desktop to workgroup machines (highlighted in my previous post) and eliminating banner pages are just two document management strategies that can lower costs and boost operational efficiency. I’ll focus on other best practices in future posts.