e-Newsletters: The Outsource: Work Smarter Everyday

Issue Date: 10.23.09

Why Electronic Document Technology?

Document scanning and storage into a document management system has the highest Return on Investment (ROI) of any document investment today.

Modern client/server networks make fast document storage and retrieval a reality that a few years ago would have been too expensive.  Low cost storage and powerful processors, efficient scanning technology and the expanding library of business applications that offer electronic document output give any company absolute justification for converting to this rapidly growing trend in good business practices.
Key benefits of electronic document management and storage include:
  • No Lost Documents
  • Instantaneous Retrieval
  • Space Efficiency
  • Filing Efficiency
  • Audit Trails
  • Security
  • Disaster Recovery

ROI FOR 10-PERSON OFFICE
DOCUMENT HANDLING COSTS

Questions

Example

How many people in your office handle paper documents?

10

How many times does each person retrieve or file a paper document per day?

20

How long does it take to retrieve a paper document?

2 minutes

What is the average hourly salary of those staff members?

$18

How much time does each person spend making copies per day?

5 minutes

How many paper copies are generated per day?

50

How much time does each person spend filing per day?

20 minutes


Monthly Calculations:

10 people x 20 times x 2 minutes = 400 mins

400/60 = 6.6 hours

6.6 x $18 = $118.80

$118.80 x 20 = $2,376/mo for document retrieval

10 people x 5 minutes = 50

50/60 = .8 x $18 = $14.40

$14.40 x 20 = $288/mo for photocopies

10 people x 20 minutes = 200 mins

200/60 = 3.3 hours

3.3 x $18 = $59.40

$59.40 x 20 = $1,188/mo for filing

TOTAL MONTHLY EXPENSES:
$2,376 + $288 + $1,188 = $3,852
TOTAL ANNUAL EXPENSES:
$3,852 x 12 =$46,224

DOCUMENT STORAGE EXPENSES

Questions

Example

How much do you spend on off-site storage per month? (Include retrieval and refiles)

$500

How many hours are spent per month accessing this off-site storage?

10

How many file cabinets do you maintain and could this space be used for other purposes? $11 per square foot is average market price 2008

20

How much do you spend on filing & printing supplies per month?

$200

How much do you spend on overnight delivery services per month?

$200


Monthly Calculations:

$18 per hour x 10 people = $180/mo for offsite storage

(includes retrieval and refiles)

Use square footage costs to determine value.

A 15"W x 25"D file cabinet = 2.604167 square feet

20 file cabinets x 2.604167 SF = 52.08334 total SF

$11 per SF x 52.08334 SF =

$572.92/mo for real estate

$200/mo for filing and printing supplies

$200/mo for overnight delivery
TOTAL MONTHLY EXPENSES:
$500 + $180 + $572.92 + $200 + $200 = $1,652.92/mo
TOTAL ANNUAL EXPENSES:
$1,652.92 x 12 = $19,835.04

WE LOVE FEEDBACK!!
Tell us what you think of our e-newsletter. We welcome your questions and comments. If you have any requests for future articles, feel free to forward them to us. We'd also love to hear your favorite efficiency tips for getting more done in less time.

Sincerely,
Kate Meyers, CEO
Brown & Meyers, Inc.
536 Washington Avenue
Portland, ME  04103
207-772-6732   800-785-7505

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