 Instant access to critical information allows employees to
accomplish more goals, more efficiently. In addition, printing
and publishing costs are eliminated for documents that do not
require hard copy creation.
Often cited as a key benefit by our clients, our document
management system facilitates document sharing and communication
not only between, but also within, organizations. This helps
build what has been described as a "corporate consciousness."
People feel like part of the team.
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To determine the ROI of our document imaging system, you must calculate the saved man-hours and storage costs and compare the final number against the cost of our document imaging system and its operation.
Formula
1 – 3 ft. filing cabinet drawer = 9,000 documents (pages)
1 – 4 drawer filing cabinet = 36,000 documents (pages)
1 – 4 drawer filing cabinet requires 21 sq. ft. of storage space
Annual cost of storing your
documents
# of filing cabinets __________ X 21 sq. ft = __________ total square feet.
Total square feet _______ X $ _______ per sq. ft. = $ ______ Annual Cost
Example
15 filing cabinets
$24.00 per sq. ft. rent
15 x 21 = 315 total sq. ft.
315 x $24.00 = $7,560 annual cost
The cost associated with finding and retrieving
documents
A key advantage of a document imaging system is the ability to find and retrieve documents instantly from your desktop PC. Time-management experts estimate that searching for documents requires 20% to 30% of the average employee’s time. Therefore, based on the 20% figure, the annual savings in man-hours is:
20% X # of employees __________ X $ ___________ Avg. Annual Wages = $ __________ Savings
20% X # of employees __________ X $ ___________ Avg. Annual Wages = $ __________ Savings
Example
In a case study of Walters Gardens, Inc., three full time employees were originally filing paper documents. After installation of our system, that number was reduced to one person working half-days to scan and label documents. According to Dave Walters, company president, “One person accomplishes all of the filing twice as fast as before, including scanning and labeling the documents.”
Furthermore, every customer service representative now has immediate access to documents, and Walters Gardens, Inc. estimates a time savings of 25%.
The time required to scan and label
documents
Based on current customer influx, a good rule of thumb is 4,000 documents per day of an entry-level employee’s time.
Current
workflow
# of documents per day __________ divided by 4,000 = __________ amount of time required to maintain
current workflow.
Archived documents
# of filing cabinet drawers ________ X 9,000 = __________ total # of documents. Total # of documents __________ divided by 4,000 = ___________ number of days to eliminate archived documents.
Example
If we use the earlier example:
15 filing cabinets
$24.00 per sq. ft. rent
500 new documents per day
10 office employees at $20,000 per year income
Annual Storage Cost = $7,560
Time savings at 20% = $40,000
Current time required to scan and label documents = 1 hour per day vs. time to hand file 500 documents.
Cost to scan and label archived documents = 135 days
135 day of labor at $20,000 annual labor cost = $10,800
Cost of System #3000 = $14,950
Summary
Annual Savings = $7,560 + $40,000 = $47,560
One time cost = $10,800 + $14,950 = $25,750
Return of Investment = 197 days |
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