Take a look around your office. How many people do you see printing, scanning, copying, faxing, editing, sharing, shuffling, or searching for paper documents? Did you know that for every 20 of those documents you see, one will be lost? And of the remaining 19, 3% of them will be misfiled?
According to Gartner, workers waste 20% to 30% of their work week managing documents or document-based information. That’s a lot of wasted time, and when there’s wasted time, there’s always wasted money.
Implementing a document management system is an investment upfront, but will pay for itself in a short period of time and provide a sufficient ROI – saving you money, increasing productivity, and improving customer service in the long run.
Cost of Using Paper Documents
Below are a few lists of costs and questions to help you think about how much you spend on paper in the office.Costs:
- $20 to file a single document
- $120 to find a misplaced document
- $220 to replace a lost document
- How many filing cabinets do you have in the office?
- How many copies do you make of incoming documents?
- Where do those copies go – filing cabinets?
- How much do you spend on filing per month?
- Do you pay rent for offsite storage?
- How long does it take to file a paper document?
- How much time does it take to find a paper document?
- How many people are handling each document?
The Hard Numbers
A study done by Cooper and Lybrand shows that office documents compromise more than 80% of corporate memory (contracts, memos, project plans, etc.), that 90% of office documents handled in the office are merely passed along or shuffled through, and that the average document is copied 19 times.
So, with 7.5% of all documents getting lost and 3% misfiled, an office that generates just 100 documents a week will lose 7 to 8 of them and misfile 3 of them, which means the company will lose $1,650 in lost documents and $360 in misfiled documents – that’s over $2,000 lost in just one week.
With electronic document management, you bring that loss down to near zero. And that’s not even considering the productivity benefits.
Here’s a list of ways your office will save and benefit from document management:
- Document storage
- Security and access control
- Simultaneous editing coordination
- Faster search and retrieval
- Version control
- Indexing and classification
- Audit trails
- Increased productivity
- Better organization
- File sharing
- Anytime/anywhere access
- Improved customer service
- Environmentally friendly
Helping someone understand just how much time and effort is saved with document management is a bit more challenging. Take this scenario for example, a customer calls with a question about their last order – with document management – you can actually answer their query while on the phone by typing in a quick search and pulling up the file.
This not only increases office productivity, it also improves customer service – now your customers don’t have to wait for a callback or sit on hold while you or someone else shuffles through files. And, if the customer wants a copy, you can email it directly to them safely and securely (no scanning involved).
Document management is an investment, an investment that is well worth the initial cost and one that provides multiple benefits for your business. Want more information about ROI for document management? Let us know – we’re happy to help.