Current Spend
$179,819.98
Found Money: $52,684
Client has three (3) non-coterminous leases that expire in 2016 and 2017. Equipment costs are high and utilization is low for machine segments. Leases contain deliberately onerous termination requirements that lead to auto renewal (entrapment) extending current terms. Service charges are reasonable and bundling of committed minimums are higher than optimal for current volumes, one machine in particular.
Recommended actions: evaluate options to automate work process and eliminate waste, further discovery of critical document processes to understand needs and leverage procurement on client terms.
Analysis of Current Situation
Costs
| Description | Current | Docufrog | ||
|---|---|---|---|---|
| Product | $39,109.00 | 21.75% | $39,109.00 | 30.76% |
| Usage costs | $72,883.51 | 40.53% | $70,183.51 | 55.20% |
| Profits and undisclosed costs | $41,862.61 | 23.28% | $3,910.90 | 3.08% |
| Finance costs | $17,953.67 | 9.98% | $10,004.08 | 7.87% |
| Taxes | $8,011.20 | 4.46% | $3,928.20 | 3.09% |
| $179,819.98 | $127,135.69 |
Summary of Leased Assets
| Model | Manufacturer | Type | Segment | Utilization |
|---|---|---|---|---|
| IRADV6075 | Canon | MFP | 70-90 PPM Segment 5 | Pooled |
| VL3622 | Oce | MFP | 31-40 PPM Segment 3 | Unknown |
| IR Advance C5035 | Canon | Color MFP(Fax,PCL,PS,xtray) | 31-40 PPM Segment 3 | Pooled |
| IR Advance C5045 | Canon | Color MFP(Fax,PCL/PS,xtray) | 41-69 PPM Segment 4 | Pooled |
| IR 1025iF | Canon | Desk MFP | 11-20 PPM Segment 1 | Average |
| IRADV6075 | Canon | MFP | 70-90 PPM Segment 5 | Average |
| Lease ID | Term | Monthly($) | Annual($) | Term($) |
|---|---|---|---|---|
| 60 | $474.00 | $5,688.00 | $28,440.00 | |
| 60 | $860.00 | $10,320.00 | $51,600.00 | |
| 60 | $335.00 | $4,020.00 | $20,100.00 | |
| $1,669.00 | $20,028.00 | $100,140.00 |
Dale Martin
Managing Member
DocuFrog
dale.martin@docufrog.com
(619) 887-0101
www.docufrog.com
Document Management Report Card
| - Document Management Report Card | |||
|---|---|---|---|
| Best Practice | Current Status | Detail | Recommendation |
| Document Device Management | |||
| Copier Lease Costs | ✓ | Costs extremely high | Begin planning and discovery of needs. Employ cost control. |
| Copier Maintenance Costs | ✓ | Costs are reasonable | Maintain current rates and look to decrease printing. |
| Copier Lease Constraints and Bundling | ✓ | Bundling limits business flexibility and decreases control | Identify constraints and calendar exit windows |
| Non-Leased Asset Costs | $\textcircled{1}$ | Costs are unknown at this time | Discover costs; review inventory, invoices and hedger. |
| Non-Leased Asset Management | $\textcircled{1}$ | Unknown control and management. | Deploy Info, Collection Agent (ICE) for discovery |
| Vendor Management | ✓ | Vendors are providing selling biased consulting. | Shift knowledge control and employ independent system. |
| Contract Management | $\textcircled{1}$ | System unknown | Discover and evaluate current system. |
| Invoice Reconciliation | $\textcircled{1}$ | Practice unknown | Discover and employ review where needed |
| Document Workflow Efficiency | |||
| Work Process Automation | $\textcircled{1}$ | Work processes unknown | Map processes and workflows |
| Informational Silos | $\textcircled{1}$ | Silos unknown | Map document flows to organizational chart |
| Critical Documents Accessible and Controlled | $\textcircled{1}$ | Critical documents unknown | Identify and account for all critical document functions |
| Employment of temporary or overtime staffing | $\textcircled{1}$ | Temporary and overtime costs unknown | Discover and evaluate current process. |
| Version Control Process | $\textcircled{1}$ | Version control unknown | Discover and evaluate current process. |
| Paper Control Process | $\textcircled{1}$ | Paper control unknown | Discover and evaluate current process. |
| Signing and Approval Process | $\textcircled{1}$ | Signing control unknown | Discover and evaluate current process. |
| Document Audit Trail Process | $\textcircled{1}$ | Document control unknown | Discover and evaluate current process. |
| Document Control Systems | |||
| Document Security and Compliance System | $\textcircled{1}$ | Document control unknown | Discover and evaluate current system. |
| Document Output Control System | $\textcircled{1}$ | Document control unknown | Discover and evaluate current system. |
| Cost Recovery Control System | $\textcircled{1}$ | Cost control unknown | Discover and evaluate current system. |
| Scan and Routing Control System | $\textcircled{1}$ | Scan control unknown | Discover and evaluate current system. |
| Centralized Document Control System | $\textcircled{1}$ | Centralized control unknown | Discover and evaluate current process. |
| Centralized Content Control System | $\textcircled{1}$ | Centralized control unknown | Discover and evaluate current process. |
| Multi-system Document Integration | $\textcircled{1}$ | Multi control unknown | Discover and evaluate current process. |
| Outside Document Service Management | |||
| Outsourced Printing Costs | $\textcircled{1}$ | Outsourced control unknown | Discover and evaluate current system. |
| Outsourced Storage Costs | $\textcircled{1}$ | Outsourced storage unknown | Discover and evaluate current system. |
| Document Retrieval Costs | $\textcircled{1}$ | Document control unknown | Discover and evaluate current system. |
| Courier Costs | $\textcircled{1}$ | Courier control unknown | Discover and evaluate current system. |
| Shipping Costs | $\textcircled{1}$ | Shipping control unknown | Discover and evaluate current process. |