A documented success

Jim Potter chats to CXO to about the tangible differences managed document services (MDS) can make for today’s organisations.

“Today more than ever, organisations are realising the merits of managed document services”
-Jim Potter

What are the economic benefits for companies opting for MDS?
Jim Potter. The economic benefits are evident from the start. Our customers are guaranteed up to 30 percent savings with the initial MDS implementation, and those savings grow as we work with our customers to further optimise their print fleet over the lifetime of our partnership. With this ongoing optimisation, our customers are able to reduce their carbon footprint through fleet reduction, minimising paper and reducing energy.

Ricoh's MDS also offers an 'out-servicing' model which focuses upon our partnership with our customers and optimises their document and information management workflows. We provide skilled resources to help our customers manage their documents and information, while streamlining their business processes. This enhanced efficiency enables them to become less reliant on manual paper processes, reduce their direct costs and focus their attention on their core business. We are transparent in our governance and our approach and our customers retain the overall control of their own environment. 

How has the economic downturn affected the business? Has it been a good opportunity for organisations to look towards MDS?
JP. I don't think there's a better time than now. Document management services offer much more than just the initial short-term benefits.

Today more than ever, organisations are realising the merits of managed document services. At the same time, there is still more awareness to be raised among European business leaders. Research shows the total spend on document management in Europe currently exceeds €14 billion per year, with some companies spending up to five percent of their annual turnover on managing documents. Just over one third have implemented a document governance strategy to address this area. Additionally, document related costs remain largely unmanaged and uncontrolled, with just 45 percent of those companies monitoring these costs on a regular basis. MDS resolves the duplication and inefficiencies being incurred by the mismanagement of the document workflow. 

Could you then give us an example of how you provided MDS for a client recently and the benefits it delivered for their operations?
JP. We are providing Unilever with management document services across 29 countries in Europe. The services will provide significant return on investment by delivering increased efficiency across all Unilever's European operations. It includes monitoring and reporting solutions for their office and home-based employees. Our document solution also aligned with their green IT strategy and continues to provide significant return on investment.

We are also working with a major NGO who employs over 2000 people in Germany. The cost savings from implementing our document services exceeded 30 percent. We also work with a well-known brand that produces athletic footwear and employs more than 30,000 people globally.  Their supply chain requires a robust, FSA-compliant and secure billing system. Historically, invoicing was a complex and time consuming process, coordinated in-house with approximately €4million spent mailing 4.5million paper invoices a year. The company has outsourced its invoicing to Ricoh. We will manage the transition from paper to electronic processes and over three years it will yield cost savings of an estimated €3m (75 percent).

How do you see the need for MDS developing in the next 12-18 months?
JP. Adoption is growing rapidly at the moment, regardless of the business size. The popularity of MDS is evidenced by the double-digit growth the market has experienced in 2008 and 2009 with a forecast for 2010 to increase a further 17 percent. There is no doubt that as awareness of the long-term benefits increases, businesses will continue to implement MDS.

Jim Potter is Executive Vice President of Operations at Ricoh Europe. He is responsible for Ricoh Global Services, Outsourcing and Managed Document Services. In addition, he oversees the supply chain and Ricoh's sales operations across EMEA. Ricoh works with organisations around the world to modernise work environments and optimise document efficiency.