"What is MPS?" Blog Series: Initial Assessment

Posted by Terry Willis on September 24, 2013

What is MPS? The first phase of MPS, or Managed Print Services, is conducting an assessment of your current print environment. Before you agree to work with a print provider and enter into a MPS program, an assessment should be performed to uncover inefficiencies and identify cost saving opportunities.

Document productivity, distribution and output are some of the last un-audited expenses in an organization, yet its expenses are one to three percent of the total revenue of an organization. Through a comprehensive analysis of your print environment, there is a potential to reduce those costs by up to 30% while increasing worker productivity. One of the best parts of the assessment is that it depicts, in the form of an actual dollar amount, the estimated savings your company could experience.

Business Goals Review

Your prospective MPS services provider should take the time to get to know your business so they can most appropriately connect the right technology solution with your business objectives. You may have to gather some information in order for your MPS provider to assess and recommend the best plan for your organization. Your key operator or office manager will be your best source of assistance in gathering the following information:

  • Monthly equipment and supply invoices
  • Employee burden rates
  • Print outsourcing costs

Additionally, be prepared to answer some questions that will give your MPS provider insight into your current print environment and indicate what technology is necessary for optimal business performance. These questions may include:

  1. What are your top business objectives?
  2. Do you have any major customer requirements that impact your business?
  3. What measurements do you use for productivity management?
  4. Are there any bottlenecks in business workflow that need to be addressed?
  5. What is your most significant technology challenge?

Technology Overview

During the initial assessment your MPS provider will inventory and audit your current equipment. This includes documenting the type of printing devices, the number of devices, unique models, age and network percentage.

The results often surprise many organizations. This is because many organizations lack a strategy for their print environment and equipment purchases are made as needed.

Device to Employee Ratio Calculation

Next the number of employees will be determined to calculate the device to employee ratio. Most organizations employ one document imaging device per three and a half to four employees. Organizations that utilize a managed approach can increase the employees per device ratio to the optimal range of 10 to one.

During the technology overview and device to employee assessment your service provider will note the placement of your printing equipment. A Managed Print Services program will develop a placement strategy that optimizes equipment utilization and functionality per your employees’ needs.

Service and Supplies Summary

Among the hidden expenses of your print environment are the costs of purchasing and internal support.

Purchasing Costs

The number of vendors you purchase from can affect your costs. The more vendors you have the more likely you are to have excessive costs used to process purchase orders and invoices, provide internal user support and maintain each device individually.

Also, equipment model variety usually adds to your vender quantity. The more variety you have, the more supplies you will have to stock, plus each will likely have its own service and maintenance policy or contract. This typically increases costs related to IT support, procurement and administration and supplies inventory management, spoilage and obsolescence and more.

Your MPS provider will assess these costs and take them into consideration when proposing changes for improvement.

Internal Support

IT Support Help Desk and administrative support, such as invoice processing, is a cost associated with managing your print fleet that is often overlooked and can play a part in effectively managing your print environment. The typical burden rate of IT Support Help Desk is $49/hour and Invoice Processing is $29/hour. Your MPS provider will calculate the number of hours you use these support services to determine your total monthly internal support costs; this figure will likely decrease with the implementation of your proposed Managed Print Services program.

 

Your MPS provider must understand how your business currently handles information in order to make recommendations for improvement. This thorough assessment sets the stage for successful implementation of the solution while acting as a tool for measuring and managing your document distribution and output. From here they can propose a plan that offers cost-saving changes and workflow improvement benefits. Start your initial assessment now:

Request a Print Technology Assessment

Topics: Managed Print Services