Digital document management and the true cost of paper

According to this, the average American worker uses nearly 10,000 sheets, or about two cases, of paper a year Alliance for resource protection In Washington DC, this number does not include paper used for magazines, newspapers, and personal use. while acc Digital Publishing International We use more than 786 million trees just to keep the world on paper for a year. Over the years, studies have shown that paper consumption continues to increase. indicates that consumption has increased by 20% year-on-year.

Many companies don’t even account for paper as a line item in their annual budgets; This can be a mistake as these same companies fail to see the true cost of paper. When assessing actual costs, we must also consider the costs of storage, lost documents, waste and labor costs. Let’s take a closer look at these puzzle pieces, for example storage; in an average office with 50 on-site employees and an average document flow, about 200 filing cabinets”, which takes up an additional 2400 square feet of office space (based on 12 square feet each) to hold what is in flux today and over $40,000 -Dollar includes additional cost for the cabinets. The same documents could fit on a single server, significantly reducing costs. They would actually be able to reduce their physical footprint along with the cost. For prime properties costing more than 2.00 sq ft, even during these trying times, the monthly savings would be $4800 per month, or nearly $58,000 per year. For many small and medium-sized businesses, this could be the cost of an additional employee, potentially resulting in no or less downsizing.

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Next we should look at the costs in the workforce. In this example we use the same office. The same 50 employees spend approximately 1.5 hours a day creating, archiving and accessing paper, including re-creating documents that need to be misplaced. These employees earn an average of $30 an hour, with some executives earning significantly more. They spend a total of 75 hours a day touching paper. This costs the company $2,250 a day, $49,500 a month, or almost $600,000 a year in salary to touch paper. In addition to labor and storage costs, the cost per print (CPP) must also be considered. The average CPP is $0.015 and includes toner, paper and minimal maintenance. This does not include the cost of the printer or major repairs such as drums, etc. At an average of 10,000 sheets per office worker, this office produces 42,000 documents per month, or just over half a million sheets of paper per year. At a CPP of $0.015, they spend $630.00 per month or $7500 per year.

If we could just cut those costs in half, this company would save $332,750 per year in real estate, salaries, and CPP, or $27,729.16 per month. With the introduction of digital document management in their environment, this company would see an immediate ROI and would be able to reduce costs and increase productivity.

More research out PricewaterhouseCoopersshows the time spent on paper in a typical organization today:

o 90% of all pages processed every day in an average office are just blended.

o The average document is copied 19 times.

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o 7.5 percent of all documents are lost, 3 percent of the remaining documents are misfiled.

o Professionals spend 5-15 percent of their time reading information and up to 50 percent of their time looking for it.

o In the US alone, there are over 4 trillion paper documents—an increase of 22 percent each year.

Considering these numbers along with the other numbers above, it’s crucial that companies start looking at the cost of paper in their organizations and figure out what they can do to lower it, not just to keep their budgets in line to bring, but also to support our global economy situation as well.