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Controlling your document costs
By Lisa Wichmann
Every office has one—a photocopier always on the fritz, a colour multifunctional enjoying too much use where colour isn’t required, an employee who specializes in the 50-page printout.
“Next to real estate and payroll, [document management] is the third-largest cost in business…and it’s virtually untracked in most organizations,” says Kevin Fancey, vice-president and general manager of document imaging solutions with Pitney Bowes Canada. Costs get out of control for several reasons, he says.
There’s a lack of standardization, leading to multiple vendors. In many companies, departments order machines on an ad hoc basis.
“If a printer breaks, you replace the printer. If the copier’s lease is up you lease a new copier,” Fancey says. Those individual orders have a hefty administrative cost.
Instead, purchasers should collect the requests, scrutinize processes (is it really necessary to print out three copies of Form B, or will one do? Instead of printing off web sites, could we train staff to bookmark the site instead?)
“Definitely, you should have a document management strategy,” Fancey says. “If you have a three and five-year vision of how you want to be handling your information, every piece of investment you make is moving toward a master plan, not just silos of investment.”
Total costs
As colour printing proliferates, buyers should be aware of the total cost of ownership. “I could go to a big box store and acquire a small printer for $89 but when the cartridge runs out it’s $100 in ink,” he adds.
Colour adds value to any document, no doubt about it, but buyers must factor in the cost of supplies. Track usage of each device, possibly with a software program, to spot under- and over-utilized machines, he suggests.
Find out how many big print jobs are sent off-site, incurring higher costs and time lags. Pare down your vendor base to eliminate the cost of cutting multiple cheques.
Before sending out the purchase order, be sure you’re clear on service and maintenance terms, adds Glen Munshaw, industry services manager for Lexmark Canada Inc. in Richmond Hill, Ont. Never assume service is included in the price.
“With copiers it’s typically more standard that training and service would be included. With printers there’s really a wide variety of acquisition options around extended warranties, training, what kind of service they want. Do they want to go on a break/fix…or do they want an extended warranty?”
You should also get a handle on what you’re spending on service. The task won’t be easy, especially in bigger companies. Munshaw recalls a financial institution that believed it wasn’t spending much on service and repairs.
Once the company started compiling data (which took a long time), it discovered it was spending on average, $175 per year on fixing and servicing each machine—there were about 200 devices in all. The solution? Fewer, more efficient devices, more strategically located.
“Most organizations, in general, have too many devices,” he adds. “Technology is allowing us to print and copy documents faster, so you need fewer devices.”
Check your settings
Once the machines are installed or relocated, check the settings, says Brad Wardell, manager of product planning and operations with Mississauga, Ont.-based Sharp Electronics of Canada.
“For instance, you might want to go into sleep mode quicker if [the machine] isn’t used much. That way it does power down and conserve energy much quicker.”
Of all the strategies to cut costs, one of the most important is vigilance, adds Bruce Farrant, president of The More Group, a Markham, Ont.-based an independent consulting company for print and document management.
“Most companies look at this as a “B” priority and they don’t put the resources into it. They kind of let the vendor run it,” he says. Even if purchasers are confident their vendor is doing a good job, it’s more effective to dedicate a staff member (even part-time) to document management.
Farrant’s clients are somewhat confused by the “mixed messages” in the market right now. Many printing companies are moving toward a printer-on-every-desk approach, while the multifunctional companies say fewer machines that do more is the best approach. Both ideas have merit, Farrant says. It’s just important to be aware of the trends, and to decide which is best for your users. That’s why it’s critical to have an internal staffer on the job, to ensure both the supplier and the buyer are in sync with the long-term goals for your company.
Lisa Wichmann, editor of Purchasing b2b, may be reached at lisa.wichmann@pb2b.rogers.com
Keeping in touch
With the recent improvements to wireless technology, it’s easier than ever to keep in touch with mobile employees.
palmOne Canada Inc., for instance, recently introduced the LifeDrive mobile manager for workers who need access to high volumes of data. It has built-in WiFi and Bluetooth wireless functionality.
With 4GB of hard drive storage, it handles the business, but leaves room for entertainment too. How much data can it hold? According to palmOne, the LifeDrive can store 1,200 documents, 6,000 e-mails, 1,000 photos, 300 songs, 2.5 hours of video, 50 voicemails, 10,000 contacts and 10,000 appointments. It’s also able to remotely retrieve Microsoft Office files left behind on the desktop computer.
“For the business executive it’s a personal mobile briefcase,” says Michael Moskowitz, president of PalmOne Canada. Estimated street price is $699.
Accessories
New from Sony Ericsson are accessories to optimize the performance of wireless devices. The company unveiled three wireless headsets and a hands-free device for the car.
The HBH-610 headset enables clearer calls in noisy environments. It also includes automatic volume adjustment, echo cancellation and noise reduction to ensure a stable connection while paired with a mobile phone, PDA or personal computer. It’s lightweight and comfortable to wear, delivering up to 6.5 hours of talk time, according to Sony Ericsson.
The company launched two other models. The Akono HBH-662 displays the name and number of incoming callers, and includes a digital battery reader so users don’t run out of power when they least expect it. The Akono Headset HBH-608 (Bluetooth-enabled) delivers up to 10 hours of talk time.
Also significant from Sony Ericsson is a hand-free device, designed to improve the safety of mobile workers while they drive. The HCB-700 has new voice dialing, allowing users to keep their hands on the wheel. The display is mounted at dashboard level, so the driver can easily see who’s calling with minimum eye movement. Up to five people who share the same car can use the device, making it well-suited to fleet applications. The phone connects automatically through Bluetooth when the ignition key is turned.
Big colour for small budgets
Purchasers are poised to throw some money at their office equipment, according to Stamford, Conn.-based Gartner, Inc.
Worldwide shipments of printers, copiers and multifunctional products are expected to surpass 124.7 million units in 2005—a 7.8 per cent increase over 2004.
“The monochrome to colour transition will be a significant event, as large vendors fight to keep their installed base, while other vendors look to grow their business with colour offerings,” says Peter Grant, research vice-president with Gartner.
Currently, less than six per cent of pages printed in the office are colour, mainly because managers are worried about the high cost per page, Grant says. However, many companies are finding their documents don’t hold the same impact when printed in monochrome.
But the hesitancy persists, so vendors are delivering lower-cost options to bring buyers to the colour camp. For example, Lexmark Canada Inc. recently launched what it calls the industry’s first all-in-one inkjet to dip below the $150 threshold.
The P4350 prints up to 15 pages per minute (ppm) in colour and up to 22 ppm in black and white, with the optional Lexmark black cartridge.
It allows users to print photos without a PC (using digital camera memory cards or the PictBridge digital camera interface). It also enables scan-to-e-mail or print, using a 48-bit flatbed colour scanner.
Epson Canada Ltd. has also brought new inkjet offerings to the table—mainly geared toward the home and small office. The recent launch included seven new printers—all using the new DURABrite Ultra pigment ink. The ink was designed for maximum resistance to fading, smudging and water. It’s also compatible with Epson’s premium glossy photo paper.
Of particular note is the Stylus CX5800F, which is an all-in-one model offering scanning, PC-free copying and printing, and high-speed faxing. Everyday printing jobs are handled at 20 ppm for black text, and up to 19 ppm in colour.
Hewlett-Packard has announced a “breakthrough” in ink-based printing, enabling record-breaking speeds. The HP Officejet Pro K550 series is designed to deliver superior color, laser-like quality text and water-resistant prints-all at up to twice the print speed and half the purchase cost of competitive color lasers printers, the company reports. Expected to be available in the fall, this printer series will also set new standards in total cost of ownership, with substantially lower cost-per-page than laser printers.
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