"An effective print output environment cannot be based on hardware any more than a building is just bricks, mortar, wood and metal.

These raw materials provide an effective working or living environment only when some architecture and design are applied."

Copyright 2009 Business Communications Group, L.L.C.

Tuesday, September 29, 2009

“Least Cost Printing” – is it the holy grail of the Managed Print Services effort?

Over the years the convergence of technologies changed not only the way we deliver documents but the cost structure of doing so. As printer technologies evolved workflows shifted from print-once-copy-many to printing to the most convenient device. Commensurate to this was an increase in costs as page volumes moved to relatively expensive toner and ink cartridge-based engines.

So began the idea of least cost printing: as copiers transitioned to digital multifunction devices much of the effort focused on replacing printers and print-once-copy-many workflows with the MFD and concentrating print volumes to a workgroup device.

The Digital Promise

Many organizations invested in new component-based digital MFD technologies on the promise of reduced costs and even improved workflow. More often than not, this digital promise was not realized due to the inability to train their users to adopt these new workflows. The capabilities of the digital MFD remained underutilized in most enterprises as users continued to print to the desktop and workgroup toner and ink cartridge-based printers.

Fleet Management

As the marketplace realized the folly of the idea that the digital MFD would eliminate printers some began to focus on reducing the cost structure of the printer itself. The concept of fleet management began to grow and come to age enabled by improvements in the quality of remanufactured and compatible supplies.


So here we are today with half the marketplace proselytizing the benefits of fleet management while the other half continues to promote digital multifunction devices as the answer to cost containment. Meanwhile, most clients still have one foot in investments in digital MFDs and the other in fleets of printers, both toner and ink cartridge-based. For these, fleet management can without doubt reduce the expenses associated with operating printers but still not to the level of maintaining the multifunction devices.

Least Cost Printing

Simple in concept, least cost printing is one step in the evolution from fleet management to print management. It acknowledges the realities of the marketplace and can deliver dramatic results by shifting pages from higher cost-per-page devices to those with lower operating costs. Organizations can reduce office printing costs by as much as 35% with an effective least cost printing strategy.

A least cost printing strategy takes into account the actual cost-per –page of individual technologies within document output environments combined with the impact on user convenience and efficiency and drives pages to the most cost-efficient device or document delivery method for a particular job. A well designed least cost printing strategy should address issues such as color, duplex printing and electronic document distribution.

Enabling Technologies

While the concept of least cost printing has been promoted by the copier industry for a number of years to cost-justify digital multifunction devices there was not an enabling technology to train and manage users to overcome their resistance to change.

Today, there are low-impact and cost-effective enablers for least cost printing. I have used several and for the most part they are easy to install and maintain and provide an attractive return on investment.

These tools are applicable for small user groups to large enterprises who wish to leverage their technology investments and realize the digital promise. They will receive additional benefits from office printing solutions that include process controls provided by a least cost printing implementation;

  • Reduced page output costs
  • Improved employee productivity
  • Increased utilization of technology investments
  • Ability to manage office printing environments
It is my opinion that least cost printing should be part of every well-designed strategy for managing a document output environment.

4 comments:

  1. Gordon - Are you suggesting software as a method of driving a least cost printing strategy? If so, which tools have you found to be most effective?

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  2. I agree that the cost of printing is always a key element of a well conceived managed print program. It allows us to begin to build the savings in the TCO for that client. Proper equipment choice, or right sizing, is also required, along with workflow analysis, document management, and productivity are an equally important element. We have successfully implemented MPS in clients where there were no actual savings; the key element was work flow improvement and productivity.
    Focus on the savings harkens back to the good old transactional sale that most clients have been hearing for years.

    A complete MPS program offers more than just lowering costs, but also improving processes.

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  3. Trevor, yes I am suggesting software tools as a method of managing to a least cost printing strategy. A good tool will allow you to convert your strategy to flexible printing rules with a user behavior modification component.
    There are a number of products available today, some are more flexible than others, some easier to implement than others and some with a much stronger behavior modification component.
    One of the services I provide is assisting service providers implement a least cost printing offering into their product portfolio.
    Mham203, if you are improving workflow and/or productivity that is part of least cost printing; typically both deliver a client benefit of reducing the expense associated with creation and output of documents.
    Do not think lateral, there is nothing wrong with focusing on savings since improving the bottom line is important to any legitimate organization.

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  4. Hi All,

    As a provider of Least Cost Routing (we call it Print Rules) we have seen a tenfold increse in sales of this product line. When customers first think about Print Management they are thinking of managing the people who are printing, not the printers/mfds.

    Great discussion.

    John

    By John Maclnnes President & CEO Print Audit

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