Desktop Printing Outlook: Ulitization Up, Costs Out of Control

This article, the second in a series, is designed to provide you with an overview of the issues and costs associated with enterprise document management. 

By far, the largest share of printing done in the U.S. today is from the desktop.  Even as we rely more and more on electronic documents and communications, office workers will print off e-mail exchanges, Web articles, electronic transactions, forms, reports, requisitions and presentations at their desk or nearby copying device.  The convenience of local printing combined with the increasing capabilities of workgroup printers has resulted in an explosion of office printing.  We continue to have a love affair with paper! 

Debunking the Myth: It’s Free
For the most part, users view desktop printing as free since it is not typically charged against departmental operating budgets. Yet, desktop printing is no small expense. International Data Corporation reports that US companies spend $100 billion annually to print and manage documents from the desktop.

Regardless, most businesses do not have a clear understanding of how much they spend on desktop printing. Fragmented accountability and lack of standardized reporting obscures the total expense here and elsewhere within the enterprise.   In general, IT directors are not aware of just how many printers reside in their enterprise, how many pages are printed each month, or the paper and supply costs associated with their printer fleet. Often, corporations have loosely-controlled methodologies for acquiring and managing office printers.  Few have an effective means to monitor utilization or track expense.  Moreover, without an enterprise placement philosophy, printer fleets often grow by default.

In addition to the direct printing costs, technicians and network administrators testify that they spend 15 percent of their time on printing-related issues. Printer installation and driver management are their top two issues for support. Over 55 percent of network traffic is related to printing. Likewise, 50 to 60 percent of all help desk calls are printer-related, according to Hewlett-Packard.

A Fresh Look at Desktop Printing
Recognizing the essential role that documents play in business processes and the increasing reliance on desktop and network printing, corporations are taking a fresh look at document output, examining printing practices across the enterprise and quantifying their true costs. The goal is to reduce the total cost of ownership (TCO) while ensuring that critical documents are available when needed. 

Certainly from a desktop printing perspective, businesses need to re-examine their current configuration of printers --desktop, network, copiers, multi-functional devices.  Today, the average corporation has one device for every two to three employees.

The fleet assessment should identify and analyze the fleet’s costs, utilization and workflow as well as the special and critical needs that are unique to each unit.  Then align the fleet with those needs. The aim is to leverage investments and facilitate least-cost printing through rules-based routing.

At the same time, corporations need to examine their contracts for printer, copier and multifunctional devices, and their associated supplies.  For those companies where printer management is fragmented, a fresh look at the entire enterprise fleet and usage could provide leverage for negotiating more cost-effective contracts.  

The Path to Greater Efficiency, TCO Reduction
Desktop printing needs vary from organization to organization. No single approach will solve runaway expense.  However, these industry benchmarks and best practices offer practical alternatives and goals that, in combination, can help achieve desired business outcomes:

• Fact-based expense monitoring -  By implementing meaningful, factual reporting, organizations are able to make informed decisions, print “smarter,” and gain leverage in negotiating with suppliers.

• Right-sized, digital print fleet – The new benchmark for the ratio of employees to printing devices is moving toward 12:1.  By optimizing the desktop printing environment with a balanced deployment of printers and replacing aging printers with  standardized digital output devices, companies significantly reduce the total expense of their printer fleet.

• Renegotiated, more flexible contracts – By consolidating suppliers and leveraging expense data, companies are reducing administrative overhead and gaining more cost-effective, flexible contracts. Granada Research estimates that strategic supplier agreements can reduce desktop printing costs 20 to 30 percent.

• Off-site, near-site printing – With availability of Web-based software tools to manage print requests, off-site and near-site digital printing offer practical alternatives to multi-functional devices which can be 1.5 to 2 cents more per impression.

• Least-cost routing -  By establishing a rules-based routing philosophy and utilizing software that examines each print request, users begin to see the true cost of printing for each job and select more appropriate output methods to meet turnaround and cost objectives.

Next Issue: Internal Printing
Of course, desktop printing is only one area, ripe for process improvement and cost reduction.  In the next issue of Insights, this column will focus on the internal print shop or reprographics department.  If you have specific questions or issues you would like to see addressed in this coming article, e-mail the editor now.