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  • Savings! Savings! Savings!

    Canada

    About The Client

    This Retail Department Store company is Canada’s oldest corporation and largest department store retailer. They operate over 500 Stores under various banners and is one of Canada’s largest employers with nearly 70,000 associates.

    The Challenge

    The company was using a multitude of suppliers and products when Ricoh engaged in early 2003 on a Major Business Charter Initiative. They had identified potential savings and efficiency objectives that they presented to the marketplace. They were looking for a Partner who could assist them with a complete national analysis, site study, cost justification, POC and Implementation Plan to achieve their objectives. Their fleet was comprised of the following:

    • Vendors: Ricoh, Xerox, Canon, Pitney Bowes, Lexmark, HP
    • Fleet size: Printers -1,300
      • Fax - 700
      • Copier - 650
      • MFD - 30
    • Objectives
      • Implement Print Migration Strategy from high cost per page printers to more cost effective MFDs
      • Enhance employee productivity
      • Reduce number of suppliers/unique models
      • Reduce administrative, purchasing and invoice costs
      • Rely on Vendor for asset management
      • Provide flexibility for moves, adds, changes or business restructuring
      • Implement an end-to-end Print/Information Management Strategy – Printers/MFDs/ Mainframe/POD/Commercial Print/Print Shops
      • Cost reduction
      • Provide easy access to fleet, asset information, service histories, costing and volumes
      • Continuous improvement
      • Simplify IT support structures

    This company had separate departments acquiring Printers, Fax, Copiers, and Scanners. They realized there was an overlap in technology installed and had limited access to asset information. They had a complete array of contract types: Purchase, Lease, and Cost per copy, scattered expiry dates and multiple servicing partners. Standards were set based on workgroup or store template. Employees could fax, copy or print to a multitude of devices within close proximity. Scanning functionality was not widespread. Multiple vendors’ products were being acquired, usually being replaced by the incumbent vendor upon lease expiry or problems with in-place equipment.

    The Solution

    Ricoh presented a high level executive overview to the executive in 2003. We laid out a Project Path and Methodology that would span 10 months. A project team of their staff and Ricoh staff were assembled to work jointly on the project. Periodic updates were given to their management and executive on an ongoing basis.

    Internal communication was sent out to all effected offices outlining the Print Audit program, benefits to the company and its employees, the process, milestones, and timelines.

    Individual contact was made by the Ricoh Project Manager team for all locations to be audited.

    Through extensive software tools, site visits and interviews, Ricoh far exceeded the initial expectations of the executive. The information that we provided back to the company provided them with an exhaustive listing of all current assets, costing and volumes. They changed the internal Project Champion 3 times during the 12 month period. Ricoh worked through all these changes and still managed to deliver the project on schedule.

    A brief outline of the tasks and benefits follow. A more detailed outline of all the Project Plans, audit tools and results can be shared upon request.

    Ricoh captured their entire Asset Base through a combination of the following tools:

    • @Remote (report on all volumes and assets)
    • PrintWise Audits
    • Site Surveys Pilot Projects Surveys

    Ricoh was able to provide a detailed cost analysis spreadsheet with projected cost savings that included the following information for the Copier/Fax/ Printer/MFD Fleet:

    • Location and Cost center
    • Model and Serial Number
    • IP Address and LAN ID
    • Mainframe ID
    • Purchase date / Purchase price
    • Remaining depreciation
    • Avg. Monthly Volume
    • Consumables cost / Service cost / Maintenance cost
    • Proposed solution with Cost savings / Floor plans / Benefits

    The Result

    • Complete inventory and costing of all assets provided by Ricoh, including all competitive devices
    • An external consultant had suggested the customer could save up to $400,000 over a 5 year period on Print Migration (Printer to MFD) – the customer and Ricoh have agreed that hard cost savings alone will exceed $2,400,000 on just Print Migration
    • Consolidate vendors (eliminated 4 vendors and 60 different models from install base)
    • Improved workflow and processes
    • Enhanced remote monitoring for IT support
    • Web based portal access to all information: Assets, Service histories, outstanding service calls, response time, % uptime, shipping status, billing information
    • Substantial energy savings exceeding $1 million over the contract term (exact number still under review)
    • Continuous improvement and long term technology strategy in place.
    • Consolidated billing with cost centers and divisions customized to the customer's required format
    • Simple acquisition plan of lease and all inclusive CPC
    • Business Charter is currently being signed off by Senior Management