There are several factors that can motivate companies to deploy a document management solution. Many organizations seek out more effective document control because it addresses a critical business issue, while for others it’s the ability to find the right information at the right time. However, firms that still employ paper-based systems and processes often make the transition to a formal document management because they understand the significant savings they can realize by reducing operational costs associated with this approach.
The Hidden Costs of Paper-based Systems
Beyond the sizable labor costs related to handling and maintaining paper documents, hard copy storage incurs ongoing material expenses as well. If records are on paper, then obviously one is going to use more of it, plus all the other office supplies that accompany it.
Less conspicuous are the costs associated with the space requirements demanded by the storage of paper files. Eliminating six average-sized file cabinets will typically free up office space for one additional employee workstation. In addition, older records often require off-site storage, as well as the material and labor costs of packing and moving.
Printer and copy toner, printer and copier repair, and other related handling adds up to six times that of the blank paper itself. Further research shows that companies with paper methods photocopy each document an average of 19 times.
Of course, printing and copying do not disappear entirely in a paperless environment, but when paper no longer constitutes the primary medium for information storage and distribution, an office prints and copies significantly less.
In the recently-released M-Files white paper, Easy Document Management: A Guide to Features, Benefits and Selection, we examine many reasons why companies seek to gain a higher level of control over their operations through effective document management. In regards to reducing operational costs, this white paper features an analysis of the total yearly cost of utilizing a paper-based system for a department of ten employees — enabling you to see just how expensive this approach can be.