Case Study:
How NYU Saved $2.23 Million
Per Year in Copier/Printer Costs

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When Copier Analytics first met with the Vice President for Administration of NYU, and described the cost savings potential that we believed NYU would experience on its copy machines, he said “he was somewhat skeptical about their copy machines cost savings  potential, that we were describing”.

However, despite his skepticism, he decided to proceed with our offered analysis, because since our services were on a contingency basis, there was no risk or cost to the University. There would be no upfront cost to NYU to do the analysis and make our recommendations, and with our fee being success related, there would be no fee if there were no savings. If there were savings, our fee would be self-funded by the savings, “a win-win for the University”.

We proceeded with our proven 5 step process.

★ STEP 1 of our process was ‘DATA COLLECTION’:  Here is where together with their existing suppliers we gathered information about their copier services experience
— information that Copier Analytics determined was critical to cost assessment and improvements. Because of our familiarity, our process was efficient and quick. We didn’t need a lot of info from their procurement team. The majority of the info we needed was available from their vendors. We cooperated with and supported their existing procurement team to minimize their workload while taking advantage of their buying experience.  The V.P. for Administration put it this way “This was a painless process … for the users and the University.”


★ STEP 2 of our process was ‘TOTAL COST OF OWNERSHIP DISCOVERY ANALYSIS (TCO)’:  Here OUR Analysis discovered NYU’s Total Cost of Ownership (TCO), which provided a financial estimate intended to determine the direct and indirect costs associated with NYU’s copies/prints document production.  NYU’s applied costing model included the purchase price, financing cost, supplier invoices, as well as direct and indirect costs related to the use and maintenance of NYU’s equipment, device and/or software.  The analysis, combined with advanced benchmarking provided specific insights and comparison with the best industry practices, while validating current practices, identifying possible efficiency improvements and outlining options designed to reduce the University’s total cost of ownership.  

OUR BENCHMARKS PROVIDE ANSWERS TO KEY QUESTIONS:  
Is this a competitive market price for the services being provided?
How do services, service levels, & terms compare to the market?

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★ STEP 3 of our process was a ‘COMPETITIVE ASSESSMENT REPORT’:  Here we studied all the nuances and ramifications of NYU’s printing activities. Copier Analytics’ professionals  completed a Supply Chain Analysis for them, taking broad strokes in discovering everything to create a realistic and concise portrait of NYU’s individual needs, including:

● Improved efficiency for administration, support and contract management functions.
● Increased user productivity and technology utilization.
● Document and device security review.
● Improved environmental practices and reduced carbon footprint.

At the end of this step in the process, NYU received our Competitive Assessment Report,  which included our recommendations for improvements and determined significant savings would be achieved with the implementation of our recommendations.  

At the end of this step, NYU had the option of approving the recommendations and proceeding to the implementation of the approved recommendations, or choosing to not implement the recommendations.  

With NYU choosing to proceed, Copier Analytics then proceeded to implement the approved  recommendations with the last two steps of our process, steps 4 and 5.

★ STEP 4 of our process was ‘SUPPLIER ENGAGEMENT AND NEGOTIATION EVALUATION OF COMPETITIVE PRICING’:  Copier analytics then engaged in the design and creation of both the competitive RFP (Request for Proposal) and the on-site assessment to support the drafting of the document. Our advanced strategic benchmarking capabilities ensured the most advantageous and cost-effective contract terms for NYU.  

Our benchmarking capabilities ensured a competitive rate structure that encouraged proper behavior by both parties for the service levels required by NYU, as well as assuring that they were entering into a properly structured agreement for both terms and charge mechanisms, accounting for NYU’s unique market factor, its requirements, as well as setting realistic and achievable results.

★ STEP 5 of our process was to ‘ESTABLISH A NEW CONTRACT WITH SUBSTANTIAL SAVINGS’:  Because Copier Analytics is NOT a supplier, and has NO affiliation with any particular vendor or a manufacturer of business products or software, we were able to be 100% unbiased in supporting NYU’s procurement team in the vendor selection process, by providing performance metrics designed to project vendor efficiency and reliability.  

At the same time, we ensured that environmental sustainability and best practices in change management was integrally interwoven into NYU’s document production strategy.  

Copier Analytics worked with their staff to develop a vendor delivery and implementation program that insured that NYU’s savings were fully realized at completion of the project.  

RESULTS:
Took NYU’s annual spend for copY machines
of $4.5 million to $2.7 million,
for a recurring $1.8 million annual savings!

Delivered $9,000,000 in savings
over the 5 year contract term.

Here’s what the Vice President for Administration said:

Just wanted to let you know what a pleasure it was to do business with you and Copier Analytics. In my opinion, it’s not often that a company exceeds expectations, which is why I wanted to personally thank, you for the services Copier Analytics performed for New York University.

When we first met and you described the cost savings potential that you believed NYU would experience on its copy machines, I must say I was somewhat skeptical. However, in short order you took our annual spend for copy machines of $4.5 million to $2.7 million for a recurring $1.8 million annual savings. And to my surprise, you accomplished this without any reduction in services, the same number of copy machines, and in some cases, copy machines were even upgraded. This was a painless process that was a win-win for the users and the University.

Thanks again for the significant cost savings achieved by Copier Analytics and the professionalism that you and your staff demonstrated during the process.
— Sincerely, Steven Donofrio
Vice President for Administration, New York University
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NYU then asked Copier Analytics
to provide its services for the
NYU Langone Medical Center.

RESULTS:
Delivered $1,638,276 in savings
over the 5 year contract term.




NYU then asked Copier Analytics
to provide its services for the
Tandon School of Engineering.

RESULTS:
Delivered $543,780 in savings
over the 5 year contract term.

 

 

TOTAL RESULTS: NYU Total Savings $11,182,056
Saved $2,236,411 a Year in Copier/Printer Costs

There are strong business reasons to inspect your document management and production policy as these strategies have a long-range impact on effective communications and can affect your bottom line to a much greater extent than commonly thought.

Copier Analytics provides our clients with technical support relating to Managed Print Services (MPS) as “the active management and optimization of document output devices and related business processes”. Hard drives, network and document security, document management, electronic storage and retrieval, digital image capture, mobile devices and cloud services have changed the way that people and organizations use images and content. The rapid change in multiple function print "MFP" technology necessitates a focused and highly specialized  knowledge and skill set.  

Copier Analytics is all about dramatically reducing your Copier and Printer services costs.

To start the path to savings, and receive more information on our NO UPFRONT COST — RISK FREE— ANALYSIS, contact:

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Jan Debassac, CEO
Office: (888) 652-6743
Direct: (646) 669-3178
Email: jandebassac@CopierAnalytics.com
Website: www.copieranalytics.com

Total Cost of Ownership Discovery Analysis (TCO)

The intent of the Copier and Printer Consultant’s analysis of current TCO relating to production of copies/prints at your organization is to provide a financial estimate intended to determine the direct and indirect costs associated with document production. Copier and Printer Consultant’s are able to provide this benchmarking target pricing based on their technical expertise.

The TCO analysis combined with advanced benchmarking provides specific insights and comparison with the best industry practices. The deliverable TCO analysis together with a high-level business case to support your decision-making will validate current practices, identify possible efficiencies and outline options designed to reduce the total cost of ownership.

The Analysis

An experienced Consultant’s expertise will provide a comprehensive, structured analysis of all costs associated with document production at your business/organization. This applied costing model includes the purchase price, financing cost, supplier invoices, as well as direct and indirect costs related to the use and maintenance of your equipment, device and or software.

The Methodology

Experienced Consultants have had the opportunity to provide document production analysis services to hundreds of companies and organizations of all sizes and types. Their approach in assisting your business/organization is based on discovering what is the best performance being achieved in the marketplace – whether in a particular company, by a competitor or by an entirely different industry. This information can then be used to identify gaps in an organization’s processes in order to achieve a competitive advantage.

They identify current cost of ownership and gaps in services that are included in vendor contracts but not utilized by the customer.

Commodity Concept- Aggregate Cost per Copy

To understand the true cost of ownership, you must first understand the components driving copy and print expense. The excessive components are underutilization, evergreen lease agreements, unused supplies and unused maintenance charges or early equipment terminations that are rolled into new leases/agreements.

That is where partnering with an experienced Copier and Printer Management Consultant, to benefit from their collective knowledge, brings results that can maximize process improvements and cost savings.

BENEFITING FROM THE COLLECTIVE KNOWLEDGE OF EXPERIENCED CONSULTANTS

An Experienced Consultant’s Capabilities
They have the data, tools and capabilities to help.

  • Establish a framework to capture internal cost structures and rationalize various service delivery structures and external markets — from service, service levels and cost/price perspectives.
  • Benefit from fact-based analysis of the intersection of technology delivery and value delivery.
  • Get insight into opportunities your organization can leverage.
  • Communicate how your organization delivers value to its enterprise constituencies.
  • Develop a strategy and evaluate its financial impact using proven methodologies.
  • Construct and Manage competitive RFP for hardware and services.
  • Ensure the relevance of results through proven market comparisons.

That is where partnering with an experienced Copier and Printer Management Consultant, to benefit from their collective knowledge, brings results that can maximize process improvements and cost savings.

Measuring Service Level Performance

The key to an experienced consultant’s ability to assist their enterprise clients is their understanding of service level agreements (SLA) and associated contract cost impact relating to specific client requirements. SLA is now widely used by copier service providers as part of major account programs available to corporate customers.

Corporate organizations enter SLA with their in-house customers (users in other departments within the enterprise) so that its services can be measured, justified and compared with those of outsourcing vendors or competitors.

SLA measures the service provider’s performance and quality in a number of ways. Some metrics that SLA may specify include:

  • Availability and uptime -- the percentage of the time services will be available.
  • The number of concurrent users that can be served.
  • Specific performance benchmarks to which actual performance will be periodically compared.
  • Application response time.
  • The schedule for notification in advance of network changes that may affect users.
  • Help desk response time for various classes of problems.
  • Usage statistics that will be provided.

In addition to establishing performance metrics, an SLA may include a plan for addressing downtime and documentation for how the service provider will compensate customers in the event of a contract breach. SLA, once established, should be periodically reviewed and updated to reflect changes in technology and the impact of any new regulatory directive.

That is where partnering with an experienced Copier and Printer Management Consultant, to benefit from their collective knowledge, brings results that can maximize process improvements and cost savings.

STRATEGIC BENCHMARKING AS A TOOL

Benchmarking as Their Tool:

  • Understand the purpose and use of benchmarking.
  • Understand the difference between benchmarking and competitor research.
  • Gain insight to ensure that benchmarking is in alignment with the company’s management objectives.

Benchmarking is a process for obtaining a measure – a benchmark. But benchmarking is not a quick or simple process tool when applied to the complex and fragmented world of organizational document production.

Benchmarking Versus Competitor Research

Benchmarking

Focuses on best practices
Strives for continuous improvement
Partnering to share information
Needed to maintain a competitive edge
Based on customer needs after examination of the best

Competitor Research

Focuses on performance measures
Bandage or quick fix
Considered corporate spying by some “nice to have"
Attempting to mirror another company/process

Strategic Benchmarking

Conducting research outside one’s own industry for preview of best practices is often challenging for a company. Experienced Consultants understand that customer satisfaction in this space is driven by critical-to-quality measures that are similar regardless of the industry. They strive to insure that the cost of services and products should not have inflated or varied cost because deployment into vertical business sectors that may be perceived by vendors to have greater tolerance for premium pricing programs.

Strategic benchmarking is used when identifying and analyzing world-class performance. Often, these benchmarks are obtained from outside industries. Experienced Consultants look at best practices across all enterprises and deliver implementable recommendations for your consideration.

Benchmarks Provide Answers to Key Questions:

  • Is this a competitive market price for the services being provided?
  • How do services, service levels, terms, etc., compare to the market?

Understanding of the Current MPS Marketplace

  • Experienced Consultants understand the key issues faced by organizations in this space.
  • They offer support throughout the full sourcing lifecycle. Whether you're in the initial strategy phase or revisiting/updating your strategy, experienced consultants help you determine if outsourcing any program components financially feasible or desirable.

Evaluation of Competitive Pricing

With either a competitive RFP process or sole-sourcing situation, you need to know you are getting the best pricing. Only benchmarking ensures competitive rate structures that encourage proper behavior by both parties for service levels required by your business.

Negotiating/Renegotiating Contracts

Benchmarking provides assurance that you are entering into a properly structured agreement for both terms and charge mechanisms — accounting for your unique market factors requirements, and setting realistic and achievable results. Experienced consultants will recommend the most advantageous and cost effective contract terms.

That is where partnering with an experienced Copier and Printer Management Consultant, to benefit from their collective knowledge, brings results that can maximize process improvements and cost savings.

Copier-Printer Management CONSULTING: OVERVIEW

Key Analytics

Develop automated services for validating data records against the quality rules you have defined. A strategic implementation enables the rules and validation mechanisms to be shared across applications and deployed at various locations in an organization's information flow for continuous data inspection and quality measurement.

The results can be fed into a variety of reporting schemes -- for example, direct notifications and alerts sent to data stewards to address anomalies and high-priority data flaws, and data quality dashboards and scorecards with aggregated metrics for a wider audience.

  • Understanding and managing customer requirements.
  • Aligning key business processes to achieve those requirements.
  • Utilizing rigorous data analysis to minimize variation in those processes.
  • Driving rapid and sustainable improvement to business processes.

Process Improvement

Improvement initiative should focus on the essential processes necessary to meet customer expectations.

These are the main processes that enable the organization to add value to goods and services and supply them to customers. Implicit within this is an understanding of what the customers - internal and external - actually want and need.

  • Identifying and understanding these processes in detail.
  • Understanding the levels of quality (especially tolerance of variation) that customers (internal and external) expect.
  • Measuring the effectiveness and efficiency of each process performance.

Identification of the key processes relating to hard copy/print within the organization that determine effectively meeting customer expectations; then measuring the effectiveness and efficiency of the processes (notably measuring variation in quality and analyzing the causes), and then initiating improvements in the weakest processes.

Data Analysis

Data quality assessment: to identify data errors and erroneous data elements and to measure the impact of various data-driven business processes. Both components - to identify errors and to understand their implications - are critical. Data quality assessment can be accomplished in different ways, from simple qualitative assessment to detailed quantitative measurement. Assessments can be made based on general knowledge, guiding principles or specific standards.

The purpose of data quality assessment is to understand the condition of data in relation to expectations or particular purposes or both and to draw a conclusion about whether it meets expectations or satisfies the requirements of particular purposes. This process always implies the need also to understand how effectively data represents the objects, events and concepts it is designed to represent. It is critical to understand vendor support capabilities and systems data collection methodology to insure that you are reviewing data significant to performance of in place SLA.

That is where partnering with an experienced Copier and Printer Management Consultant, to benefit from their collective knowledge, brings results that can maximize process improvements and cost savings.

Copier-Printer Management CONSULTING: OVERVIEW

In an ever-changing economy, organizations are challenged to develop and maintain technology investment strategies that maximize process improvements and cost savings.

For many organizations; total cost of operations and fleet management of copier and printer assets is usually underestimated and for many large corporations this is one of the most expensive overhead items and a vital component of your firm’s communication infrastructure.

Copier and Printer Management Consultants have saved many tens of millions of dollars for businesses and organizations of various industries and of diverse size, by understanding the intricacies of the hard copy/print marketplace and by assisting businesses/organizations in including all cost components of what is typically a fractured and fragmented approach to managing this commodity. These consultants focus on the cost of the finished product-ink/toner on paper, creating economy of scale and benchmarking your current costs on the best industry standards and contract pricing.

Hard drives, network and document security, document management, electronic storage and retrieval, digital image capture, mobile devices and cloud services have changed the way that people and organizations use images and content. The rapid change in multiple function print "MFP" technology necessitates a focused and highly specialized knowledge and skill set. That is where partnering with an experienced Copier and Printer Management Consultant, to benefit from their collective knowledge, brings results that can maximize process improvements and cost savings.