There has been an increased interest in companies adopting Managed Print Services to improve efficiency and reduce costs. Industry analysts have produced substantial amounts of material on the benefits and reasons why one should go down this road... but have they been listening to vendors too much?
The Managed Print
Service Game: How to
Play and Win
By Geoff HoggSenior Consultant, NewField ITBut beware. Before you sign a contract, WHY PLAY THE MPS GAME? you need to make sure you understand the rules of the game, and how to play to win.
Close your eyes. Listen to the roar of the crowd. See the ribbons being tied to the HOW THE GAME'S RULES CAN cup. WORK AGAINST YOU
Imagine for a moment that you're not The key business justification for managing procurement in an office, but implementing an MPS is to save money. that you're managing your local rugby NewField IT has audited over 60,000 print team. You know the star players (the assets and we have seen average cost digital copier, the colour printer, and the savings of between 20%-40%, which is great high volume scanner). You know what news. However, these cost savings are pleases the crowd (new features, faster only like-for-like, i.e. comparing the costs output). And you also know what pleases of printing the same number of pages in the board (increased productivity, with a pre and post-optimised environment. A cost savings). well-implemented managed print service will invariably deliver a lower cost-per-It's a balancing act, but a good club page when all costs are considered. But manager also knows that keeping an eye what about the other way of saving money: on the reserve team, and selecting up and printing fewer pages? However low the coming players with potential can be the cost per page is in your MPS contract, it key to sustained success. will always be cheaper to elect not to print the page at all. It seems obvious that Management of print and photocopying if you print less, your costs will reduce. costs have traditionally been viewed as However, this may not be in the interests second team activities when it comes of the MPS vendors. The rules of the game to controlling budgets, rarely being can then work against you: considered as key for selection to the first team. After all, isn't there an increasing Rule 1 MPS contracts encourage the queue of copier vendors knocking on the vendor to increase print volumes, not door, offering apparently ever-cheaper reduce them.contracts? MPS base* costs can typically be 1However, procurement and facilities apportioned as follows :managers with their eye on the ball have started to scrutinise these areas. Analysts, such as Gartner and IDC, have made it 100very clear that printing and copying is a major cost to an organisation and that 80by optimising this function large savings 60can be made. Making these savings % 40requires changes to current working practises, and increasingly organisations 20are implementing a Managed Print Service 0 HARDWARE MAINTENANCE page costs(MPS), which comprises hardware, software and services to create a full or partial office print infrastructure, (*These do not include costs associated with premium management delivered as an outsourced service by a services, e.g. onsite staff, as these vary greatly depending on customer specialist vendor. requirements.)1Source: NewFieldIT data, 2003-2007
2Page costs, i.e. costs associated with possible cost will normally occur when supplying and replenishing consumables, you minimise the amount of pages that are by far the biggest cost component of are printed, and minimise the cost of an MPS. It will also typically provide the each individual page. To achieve this you largest profit margins for suppliers. These need to look at the natural outcome of costs are invariably levied as a cost-per- implementing each element of your MPS page; therefore the more you print, the and ensure that it is aligned as far as better it is for the vendor. In many cases possible with your objectives. Actions you there is also a minimum charge, which can take to achieve this are as follows:means that there will be a point beyond which you cannot make any further savings Win/win for both teamsby reducing the amount you print. Reward the vendor when you print less: there will always be cost elements that So where is the motivation to minimise grow with volume, but a "gain-share" your printing? agreement can be implemented with your vendor to offset some of this. If you have Rule 2 MPS vendors will look to a clear understanding of your current maximise the volume of high-cost costs then you can set up a split in future colour prints. cost savings between your organisation and th... [download for more]
