The Client
This client is a top ranking brewer selling beer and soft drinks. In Canada, the brewery employs almost 4,000 Canadians and operates breweries from coast to coast.
The Challenge
Late in 2003, the various procurement channels were facing mounting pressure to seek out savings and consolidate vendor relationships. A team was formed to review office equipment standards and approached potential suppliers with the following objectives:
- Reducing the number of suppliers
- Developing strong relationships with one innovative and competent supplier
- Providing a long term commitment
- Reducing unit costs for the supply of existing and future print/copy/fax requirements
Discussions progressed over a series of months and culminated in POC (Proof of Concept) testing. Primary assessment criteria necessitated a sole vendor who was capable of handling all equipment requirements including print shop, standalone printer, MFD (multi function device), and personal MFD. Confidential print functionality was another core requirement as the Brewery sought to eliminate or dramatically reduce the number of 1:1 user to device ratios. Lastly, the preferred supplier needed to demonstrate the ability to work with the brewery in order to provide a sound methodology device deployment and for establishing measurable savings targets.
The Solution
As vendor selection was inevitably scaled down to one, Ricoh emerged as the partner of choice. The task at hand was all encompassing – the first plan of action was to develop a detailed implementation plan which defined all tasks and timelines related to the device/ imaging initiative. Device deployment was to follow months of intense analysis related to defining costs and savings targets, and engaging Ricoh resources across the country to visit all their sites as part of the Print Wise audit process. This process provided specific recommendations for each site, which were ultimately mapped and submitted to the brewery for review and final approval. Over 60 corporate sites across Canada were in scope.
Site assessment and Contract negotiations were mirrored by efforts in IT to test, certify and approve all Ricoh devices. Over 400 applications had to be qualified and assessed throughout the testing process, and devices were deployed in strategic locations across the country to support this requirement. Ricoh assigned dedicated personnel to address all IT escalations and technical concerns. The support continued throughout the live implementation phase as Ricoh designated a specific resource to assist in network activation and mapping of all drivers/utilities and de-commissioning of old devices.
The live implementation phase was completed over 4 months resulting in 630 new devices. This represented a reduction of 59% in the total fleet population. Combined with Ricoh’s on-line customized Portal tool, the burden on the their IT service desk was dramatically reduced. The Portal is linked to Ricoh’s ERP system providing them with real time information on all their office equipment assets. Details ranging from install location, meter read information, service call history, active service call activity, and current order status are all readily displayed at the click of a button.
End Results/Benefits to LIBC:
- 1.5 million guaranteed savings over 3 years with future potential for more based other defined opportunities and a one-time financial settlement related to de- commissioned equipment.
- A simplified CPP (cost per page) cost model covering all aspects of hardware, service and supplies on a single consolidated invoice.
- One stop shopping with a single vendor for virtually every aspect of document imaging.
- A proven methodology to assess all applications, requirements, and savings on a go forward basis.
- A global partnership which finds its roots in Canada but now extends to the United States and across Europe.
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