Print outsourcing: how to save on printing with active paper workflow
Any company, even the most generous and rich, does not mind saving money by optimizing various costs. It is no secret that the larger the company, the higher its expenses are for seemingly minor budget items. This is especially true for printing costs, which, at current prices for consumables for printers, can be truly "gold".
In order not to portray Captain Obvious, we give the data of the well-known company HP.
According to Hewelett-Packard research, an average company spends an average of 6% of its profits on printing. At first glance it seems that this is a tiny amount. And if a company earns 10 million rubles a year, then 600 thousand rubles are spent on printing. A rather big number. But what if you imagine an organization that earns $ 10 billion a year? In this case, the average cost of printing may well amount to $ 600 million. Even if you reduce HP data by 10 times, it turns out $ 60 million. This amount is more than significant for any organization, even the most affluent.
One of the most reliable means of optimizing the cost of printing and paper work is printing outsourcing in general (this service is also called post-copy service).
We immediately say that this method of optimization will not work for everyone, but only for medium, large and very large companies, whose activities imply the need for paper workflow in large quantities.
Thus, this post will help you to establish processes and save money right now or will become a useful article for future work.
Recently, in Russia, the practice of outsourcing is gaining momentum. It is no exception and the transfer of the organization’s printing process to a third-party company.
The cost of printing very often does not even fall into the structure of IT budgets , since the cost of purchasing consumables for printing equipment in large companies is sometimes literally “spread out” between other divisions and refers to the operating expenses of these divisions. For example:
Moreover, in each city / branch it may have its own departments in one large company, and hundreds of people duplicate each other’s work.
Until a certain point, the company simply does not realize how much money is really spent on servicing printers and MFPs.
')
Maslow's Pyramid for the company's paper workflow (source)
Outsourcing office printing (also known as “copying service”, it is also called “MPS - Managed Print Service”) is a comprehensive service for printing equipment, in which the client only pays for a separately printed copy / page. A copy should be understood as one A4 page, which is the actual result of the apparatus operation: printed on a printer, received by fax, copied using a copier, etc. (if you printed on both sides of the page, these will already be two copies).
On all new models of printing equipment (copiers, printers, MFPs) a counter of produced copies is installed. As an exception, you can select such printers as HP LJ 1000 and 1020. When working with them, you will most likely have to focus on the stated number of copies at 5% of the sheet or install specialized software.
There are two ways to read the meter: manual and automatic. With the manual method, the printer configuration page is simply printed. This is the surest way, but not very convenient, and the data obtained in this way is difficult to take into account automatically.
There is a second option: various software for monitoring printers (PrintMonitor, PaperCut, Printer Activity Monitor, SNMP Discovery and many others). All of these programs show the number of printed sheets, the amount of ink / toner in the cartridge, the approximate time to replace the cartridge, and more.
The problem is that this software is designed to work on the network, and some company executives refuse to install such software in order to ensure the confidentiality of internal data.
The introduction of print outsourcing in organizations is a qualitatively new level of accounting for printing processes , the transition from the abstract plane to the concrete plane.
This is a completely different approach, which makes it possible to use the unique competencies of a printing service provider to a much greater degree.
First, almost always, copy-based contracts are concluded with a specific service level agreement (SLA), where the supplier’s response time, deadlines for performing work, and troubleshooting are clearly spelled out. All applications pass through the Service-Desk, with the help of which it will not be difficult to track the effectiveness of the provider in percentage terms.
Secondly, you are no longer interested in the quantitative characteristics of the cartridge - how many copies it has printed. Between times it is worth noting that few people keep these statistics. In the previous article, we already mentioned that when using refilled and compatible consumables, the cartridge life is unstable and unpredictable, so in most cases it does not finish the stated number of prints. Paying for the cartridge (refilled, compatible, restored), you hope that it will print the stated number of pages without any problems. Often hopes are not met.
Thirdly, with this format of service, you have the right, together with the provider, to fix the print quality, which should be obtained at the output.
With quality service should not be:
With this approach, both descriptive and quantitative characteristics appear. It is possible not only to competently set up printing processes within the organization, but also to comprehensively and comprehensively evaluate the work of your supplier.
The visible part of the iceberg of printing costs is sometimes inferior in size to its main part, which is “under water”.
Hidden costs (invisible part of the iceberg):
First, cost reduction is primarily achieved by optimizing the printing fleet of equipment due to its consolidation - local devices are being replaced by those high-performance printers and multifunction printers that have a lower print cost. Factors such as reduced downtime and reduced energy costs are directly related to consolidation. This may also include equipment unification.
Secondly, where possible, cartridges with a large volume are put. Take the HP LJ Pro 400 M425 as an example. When using a 280A cartridge (for 2700 copies), the price of a copy is on average 57 kopecks, after switching to a cartridge with an increased volume of 280X (6900 copies) the price of a print decreases to 40 kopecks. The difference is obvious.
Thirdly, if a client wants to purchase a new equipment, then he gets it for rent or lease. Thus, the initial cost of the purchase and tax deductions on fixed assets do not fall on the customer. The price for the new device will be included in the copy.
Fourthly, there is a release of IT resources and switching it to tasks more “intelligent” than replacing the cartridge in the printer.
The cost of a copy includes the cost of the supply of consumables, maintenance of equipment, as well as the repair of devices along with the details. This may also include the supply of paper and leasing / leasing of new printing devices. The supplier may offer a choice of payment for a copy of the contract. What options can be here:
The Russian print outsourcing segment, although small compared to the overall print market, has long attracted the attention of world vendors. Immediately, three analytical agencies (IDC, Quocirca and Gartner) agree that the world leader in this segment is Xerox, which holds leading positions for a long period. Together with Hewlett-Packard, they, according to IDC, occupy more than half of the Russian outsourcing market. Other MDS leaders include Ricoh, Lexmark, Canon and Konica Minolta, which demonstrate an understanding of print market trends and keep up with the times. Analysts point out Kyocera Document Solutions, which has fallen into a group of companies that are highly competitive, due to intensive development and growth.
MDS (Managed Document Service) - document management system. Many believe that this concept is equivalent to MPS (Managed Print Service) "print management system." When we talk about MPS, we mean by this abbreviation only the seal. Document management is a more global concept. This is a synergy of printing equipment and software. For example, an employee has a document, he scans it and plans to send it to the archive. However, it first needs to be indexed for future use. The document can be sent to print or directly to the electronic document. “Kiosera Mita Rus”, for example, installs special software on a computer that helps prevent unnecessary printing — a page cost is displayed on the screen before printing to a printer. The user will once again think about the expediency of printing a document. Also, vendors within this service are engaged in the organization of print rooms, customize printing of marketing materials and help to introduce an electronic document management system.
In addition to all the advantages of such a service, it has significant drawbacks. Firstly, it is not cheap, as vendors use original cartridges and spare parts as consumables. Therefore, it is difficult to talk about cost cutting. Secondly, the vendor serves printing technology only of its brand. If the customer decided to switch to a vendor, the latter completely renews the fleet of vehicles to his brand, which causes a “printer” dependency on the client, since in the future switching to another supplier can lead to serious financial costs. In the light of recent events, dependence on a foreign vendor is especially dangerous. Third, such services are not yet so relevant for medium-sized domestic companies. For this reason, serious international outsourcing operators are waiting for more favorable conditions. The main consumers of managed print services are large companies affiliated with foreign business structures.
Pros:
Minuses:
Before making a decision on switching to coping services, you should carefully analyze the situation with the seal in the company:
In general, as in any other case, it is worth using the old adage: “Measure seven times, cut once”.
Cartridge resource: the cartridge resource is understood not as the amount of toner poured into it, but according to the amount of toner — to the number of printed documents at 5% (the figure may vary slightly depending on the brand) filling A4 printed sheet on one side.
Regulated maintenance: maintenance, the frequency of which is recommended by the manufacturer of the printing device.
Legitimate consumables: original cartridges or cartridges made from proprietary materials that do not violate the copyright of the manufacturer.
Disposal of consumables: cartridges are classified as "hazardous waste"; Responsibility of legal entities and state institutions for waste disposal is theoretically regulated by the Federal Law of 24.06.1998 N 89- “On Production and Consumption Wastes”; but the harsh reality of recycling cartridges has already been described on Habré; cartridge recovery technology allows to significantly reduce the amount of garbage to be disposed of.
Labor resources: about 25% of employee calls to the company's technical support service are associated with printers; these are resources that could be spent on solving strategic problems.
Average copy price: this is the price obtained by dividing the average market value of the cartridge by the number of copies of the cartridge declared by the manufacturer; We described the formula for calculating the average price of a copy in a previous post .
Print volume: the average number of printed documents in the company per month; The easiest way to identify the company's print volume is to analyze the average volume of office paper purchased.
In order not to portray Captain Obvious, we give the data of the well-known company HP.
According to Hewelett-Packard research, an average company spends an average of 6% of its profits on printing. At first glance it seems that this is a tiny amount. And if a company earns 10 million rubles a year, then 600 thousand rubles are spent on printing. A rather big number. But what if you imagine an organization that earns $ 10 billion a year? In this case, the average cost of printing may well amount to $ 600 million. Even if you reduce HP data by 10 times, it turns out $ 60 million. This amount is more than significant for any organization, even the most affluent.
One of the most reliable means of optimizing the cost of printing and paper work is printing outsourcing in general (this service is also called post-copy service).
We immediately say that this method of optimization will not work for everyone, but only for medium, large and very large companies, whose activities imply the need for paper workflow in large quantities.
Thus, this post will help you to establish processes and save money right now or will become a useful article for future work.
Recently, in Russia, the practice of outsourcing is gaining momentum. It is no exception and the transfer of the organization’s printing process to a third-party company.
The cost of printing very often does not even fall into the structure of IT budgets , since the cost of purchasing consumables for printing equipment in large companies is sometimes literally “spread out” between other divisions and refers to the operating expenses of these divisions. For example:
- paper is purchased by an office manager (or an employee of the AHO department),
- the printing equipment is purchased by the IT department,
- consumables (cartridges) - acquires the purchasing department.
Moreover, in each city / branch it may have its own departments in one large company, and hundreds of people duplicate each other’s work.
Until a certain point, the company simply does not realize how much money is really spent on servicing printers and MFPs.
')
On Habré, in short, the topic of print outsourcing has already been raised:
Maslow's Pyramid for the company's paper workflow (source)
What is office printing outsourcing?
Outsourcing office printing (also known as “copying service”, it is also called “MPS - Managed Print Service”) is a comprehensive service for printing equipment, in which the client only pays for a separately printed copy / page. A copy should be understood as one A4 page, which is the actual result of the apparatus operation: printed on a printer, received by fax, copied using a copier, etc. (if you printed on both sides of the page, these will already be two copies).
On all new models of printing equipment (copiers, printers, MFPs) a counter of produced copies is installed. As an exception, you can select such printers as HP LJ 1000 and 1020. When working with them, you will most likely have to focus on the stated number of copies at 5% of the sheet or install specialized software.
There are two ways to read the meter: manual and automatic. With the manual method, the printer configuration page is simply printed. This is the surest way, but not very convenient, and the data obtained in this way is difficult to take into account automatically.
There is a second option: various software for monitoring printers (PrintMonitor, PaperCut, Printer Activity Monitor, SNMP Discovery and many others). All of these programs show the number of printed sheets, the amount of ink / toner in the cartridge, the approximate time to replace the cartridge, and more.
The problem is that this software is designed to work on the network, and some company executives refuse to install such software in order to ensure the confidentiality of internal data.
The introduction of print outsourcing in organizations is a qualitatively new level of accounting for printing processes , the transition from the abstract plane to the concrete plane.
This is a completely different approach, which makes it possible to use the unique competencies of a printing service provider to a much greater degree.
First, almost always, copy-based contracts are concluded with a specific service level agreement (SLA), where the supplier’s response time, deadlines for performing work, and troubleshooting are clearly spelled out. All applications pass through the Service-Desk, with the help of which it will not be difficult to track the effectiveness of the provider in percentage terms.
Secondly, you are no longer interested in the quantitative characteristics of the cartridge - how many copies it has printed. Between times it is worth noting that few people keep these statistics. In the previous article, we already mentioned that when using refilled and compatible consumables, the cartridge life is unstable and unpredictable, so in most cases it does not finish the stated number of prints. Paying for the cartridge (refilled, compatible, restored), you hope that it will print the stated number of pages without any problems. Often hopes are not met.
Thirdly, with this format of service, you have the right, together with the provider, to fix the print quality, which should be obtained at the output.
With quality service should not be:
- print strips
- paper jams
- image distortion
- dots on paper
- toner particles on a sheet
- extraneous noise when printing
With this approach, both descriptive and quantitative characteristics appear. It is possible not only to competently set up printing processes within the organization, but also to comprehensively and comprehensively evaluate the work of your supplier.
Obvious and hidden printing costs
The visible part of the iceberg of printing costs is sometimes inferior in size to its main part, which is “under water”.
- Cartridges
- Maintenance and repair of printing devices
- Purchase of spare parts
- Buying new equipment
- Paper
Hidden costs (invisible part of the iceberg):
- Electricity
- Printing for personal use by employees and unauthorized color printing
- Erroneous seal
- Inefficient use of IT resources
- Losses from vehicle downtime (due to lack of consumables or repairs)
- Storage costs
- Labor costs for employees who organize print support within the organization and their jobs.
What is the savings
First, cost reduction is primarily achieved by optimizing the printing fleet of equipment due to its consolidation - local devices are being replaced by those high-performance printers and multifunction printers that have a lower print cost. Factors such as reduced downtime and reduced energy costs are directly related to consolidation. This may also include equipment unification.
Secondly, where possible, cartridges with a large volume are put. Take the HP LJ Pro 400 M425 as an example. When using a 280A cartridge (for 2700 copies), the price of a copy is on average 57 kopecks, after switching to a cartridge with an increased volume of 280X (6900 copies) the price of a print decreases to 40 kopecks. The difference is obvious.
Thirdly, if a client wants to purchase a new equipment, then he gets it for rent or lease. Thus, the initial cost of the purchase and tax deductions on fixed assets do not fall on the customer. The price for the new device will be included in the copy.
Fourthly, there is a release of IT resources and switching it to tasks more “intelligent” than replacing the cartridge in the printer.
Payment method
The cost of a copy includes the cost of the supply of consumables, maintenance of equipment, as well as the repair of devices along with the details. This may also include the supply of paper and leasing / leasing of new printing devices. The supplier may offer a choice of payment for a copy of the contract. What options can be here:
- Traditional payment. Copy printing with fixed payment. This type of payment is most common.
- Single price. Copy payment for black and white and color printing at a single rate without limiting the number of pages. For many companies, this method is more convenient.
- Fix price. Copy payment for black and white and color printing, providing for printing the minimum required number of pages at a special rate and printing the rest of pages at a regular rate. This is done for customers who clearly know their printing needs.
MDS or what vendors offer
The Russian print outsourcing segment, although small compared to the overall print market, has long attracted the attention of world vendors. Immediately, three analytical agencies (IDC, Quocirca and Gartner) agree that the world leader in this segment is Xerox, which holds leading positions for a long period. Together with Hewlett-Packard, they, according to IDC, occupy more than half of the Russian outsourcing market. Other MDS leaders include Ricoh, Lexmark, Canon and Konica Minolta, which demonstrate an understanding of print market trends and keep up with the times. Analysts point out Kyocera Document Solutions, which has fallen into a group of companies that are highly competitive, due to intensive development and growth.
MDS (Managed Document Service) - document management system. Many believe that this concept is equivalent to MPS (Managed Print Service) "print management system." When we talk about MPS, we mean by this abbreviation only the seal. Document management is a more global concept. This is a synergy of printing equipment and software. For example, an employee has a document, he scans it and plans to send it to the archive. However, it first needs to be indexed for future use. The document can be sent to print or directly to the electronic document. “Kiosera Mita Rus”, for example, installs special software on a computer that helps prevent unnecessary printing — a page cost is displayed on the screen before printing to a printer. The user will once again think about the expediency of printing a document. Also, vendors within this service are engaged in the organization of print rooms, customize printing of marketing materials and help to introduce an electronic document management system.
In addition to all the advantages of such a service, it has significant drawbacks. Firstly, it is not cheap, as vendors use original cartridges and spare parts as consumables. Therefore, it is difficult to talk about cost cutting. Secondly, the vendor serves printing technology only of its brand. If the customer decided to switch to a vendor, the latter completely renews the fleet of vehicles to his brand, which causes a “printer” dependency on the client, since in the future switching to another supplier can lead to serious financial costs. In the light of recent events, dependence on a foreign vendor is especially dangerous. Third, such services are not yet so relevant for medium-sized domestic companies. For this reason, serious international outsourcing operators are waiting for more favorable conditions. The main consumers of managed print services are large companies affiliated with foreign business structures.
The advantages and disadvantages of outsourcing
Pros:
- Exemption of employees from non-core tasks. We have already mentioned above that employee costs are a major expense for the company.
- Cost reduction. The right transition to outsourcing reduces from 10% to 50% of printing costs.
- Transparency services. An outsourcer must provide at least monthly reports on printed copies. As a maximum - through the program the client at any time can check the work of the copy-copy contract.
- A copying contract must be accompanied by a service level agreement (SLA), according to which the client is able to monitor the effectiveness of the provider.
- One supplier (outsourcer) is a single point of responsibility. In case of a supplier’s unfair work, all the stones will fly in his direction, because he alone is responsible for the park that he “tamed”.
- Uninterrupted work. For each device, a replacement cartridge stock is assumed. In the event of a defect in the copy or complete consumption of toner, the client removes the cartridge from the printer and inserts a new one. The printer is printing, the work continues.
- Budget design. If the client has information about the quantity of paper purchased and knows the price of a copy, then it is easy to calculate the cost of printing and put this amount in the budget. No additional costs should be.
- Constant technical support. Each client user must have an outsourcer's telephone number. For any problem with the printing technology, he can call and consult directly.
Minuses:
- The complexity of accounting copies on inkjet machines. In this situation it is better to replace inkjet printers with laser ones. As an option - separately buy original ink for them and take into account the stated resource at 5% completion of the sheet. Or withdraw the inkjet printing in a separate block in the project Outsourcing and the calculation is not to keep the cost of a copy.
- Paper sizes except A4. Secondary service is designed only for A4 format, it does not apply to other formats. A3 format counts as 2 A4 prints
- Printers without counters. There are printers on which it is impossible to take meter readings.
- Implementation problems. The implementation of outsourcing is a global project that requires support from the regions (if the client has an extensive network of branches across the country). Its implementation is a long process. Practice shows that negotiating an outsourcing contract is delayed for 2 months, and a full launch for 3-6 months. It also occurs when regional leaders have their own interests in working with local suppliers. The centralization and transparency of print dream them in the most terrible dreams, so they often do not cooperate with the provider of a complex service, but come into conflict with it.
- Questions of trust. How psychologically prepared are you to pass into the wrong hands the most technically simplest part of the work of the IT department, but at the same time the most time consuming?
findings
Before making a decision on switching to coping services, you should carefully analyze the situation with the seal in the company:
- how much you pay for the total print (per month, quarter, year), taking into account all the obvious costs;
- must take into account hidden costs;
- When choosing a supplier, one should be guided not only by price, but also by its reputation and experience of successful projects.
In general, as in any other case, it is worth using the old adage: “Measure seven times, cut once”.
Glossary
Cartridge resource: the cartridge resource is understood not as the amount of toner poured into it, but according to the amount of toner — to the number of printed documents at 5% (the figure may vary slightly depending on the brand) filling A4 printed sheet on one side.
Regulated maintenance: maintenance, the frequency of which is recommended by the manufacturer of the printing device.
Legitimate consumables: original cartridges or cartridges made from proprietary materials that do not violate the copyright of the manufacturer.
Disposal of consumables: cartridges are classified as "hazardous waste"; Responsibility of legal entities and state institutions for waste disposal is theoretically regulated by the Federal Law of 24.06.1998 N 89- “On Production and Consumption Wastes”; but the harsh reality of recycling cartridges has already been described on Habré; cartridge recovery technology allows to significantly reduce the amount of garbage to be disposed of.
Labor resources: about 25% of employee calls to the company's technical support service are associated with printers; these are resources that could be spent on solving strategic problems.
Average copy price: this is the price obtained by dividing the average market value of the cartridge by the number of copies of the cartridge declared by the manufacturer; We described the formula for calculating the average price of a copy in a previous post .
Print volume: the average number of printed documents in the company per month; The easiest way to identify the company's print volume is to analyze the average volume of office paper purchased.
Source: https://habr.com/ru/post/240207/
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