How Can A Managed Print Services Program Continue To Identify And Lower Costs?

We all know that good decisions are based on good information; with MPS, this is certainly true and becomes more meaningful over time. With an outsourced approach to print management MPS), the need for meaningful data on an on-going basis is key to strategically managing print as a business process. Real‐time data allows a Service Provider to proactively manage their customer needs, improve service levels, and improve productivity, all while lowering costs.

A managed Print Solution doesn’t end with the implementation of a new solution; on the contrary, that’s where it begins. Rather than just tracking historical maintenance events, being able to make prioritized decisions for allocating limited resources based on more complete information is critical to the process. Without a clear understanding of cost structures, it’s difficult, if not impossible, to accurately prioritize, define, and manage a print environment; including service and support requirements. With available data, a Service Provider can identify areas for greater scrutiny and delve into underlying drivers in pursuing continuous improvement. Furthermore, data transparency enables heightened scrutiny and audit capabilities, both for the Service Provider and the customer, which inherently demands over‐sight and review.

What Should You Expect From A Managed Print Services Program In Terms Of Initial Lowered Costs?

To begin, the first 1‐6 months of a Managed Print Services engagement should be all about cost containment. However honorable one’s intentions, it’s impossible to contain costs if you don’t understand where they exist, how they’re created, and how a company’s print environment is impacting those costs.

This kind of analysis requires data, which many Service Providers are too lazy to collect, or who collect partial data inconsistently; don’t know how to analyze it, analyze it for the wrong reasons, or who just don’t understand the value of data to begin with.

So the first 6 months can be used primarily to collect and track data. That doesn’t mean that you’re not fully engaged with managing the Customer’s environment. On the contrary, you should be engaged from day one. It does mean that you need to communicate and set expectations. Let your Customer know that the immediate cost reduction will occur through the very act of outsourcing the management of print to a strategic Service Provider who is knowledgeable and 100% focused on managing print as a business process.

How Does Managed Print Services Help to Reduce the Long Term Costs of Print?

Un-managed and poorly managed print environments result in redundant assets, excessive inventory, inefficiencies, and uncontrolled costs. In today’s competitive marketplace, you must control and accurately allocate your assets and related costs. In order to do this, a service provider must be proactive, must gather extensive data, analyze that data, make adjustments to an organization’s print environment based on that analysis, and then do it all over again, and again.

As a Manages Print Services Service Provider, you are seeking to make the costs associated with device management more visible, and reduce them through ongoing analysis and process improvement. In order to provide this level of service, you must have access to meaningful data. You must also establish a baseline to quantify the impact of your managed Print Services program. With access, you’re now in the position to analyze the data and to drive efficiencies and cost savings. This is how you can manage and accomplish a well executed plan of long term reduction in print costs.

How Can a Managed Print Services Solution Improve An Existing Process?

Last week, I wrote on the topic “How Do You Demonstrate the Value of Managed Print Services to Prospects Who Seem Happy with Their Current Processes? So now, let’s take a closer look at a print management process, and see how an MPS solution could add value. Let’s look at a “printer swap out process” as an example. Assume that the current process is one in which the customer carries spare equipment to hot swap when a print device goes down. This print management process is more concerned with up‐time than with managing costs and improving processes; this is a process ripe with inefficiencies and unnecessary costs. To start, you should be asking the following question: Why are these devices going down and what can you offer to reduce the frequency of the swap‐out policy currently in place?

Maybe they don’t that with today’s technology, strategic Service Provider have the ability to remotely manage the operational needs of all devices under management, in many cases before the end‐user is unable to print. Maybe they don’t know that the right Service Provider, providing the right solution, could proactively schedule service, visit the device, identify the issue, and have it resolved before it creates the need for a device swap‐out. Wouldn’t that sound like a more prudent approach to managing a process?

Obviously, the current process incurs financial expenditures relative to time, energy, and productivity, not to mention the ongoing repair costs. Just how much value are they really getting for those expenditures? More than likely, their current process does not fully address other value points, such as cost avoidance, cost containment, and process improvement. So an assortment of questions arises, such as: Why are the print devices going down? Would avoiding this be of value? Why are they going down? Are the devices being properly serviced? Is the current Service Provider performing preventative maintenance on a regular basis in order to extend their life and reduce the incident of print issues? Which devices need more preventative maintenance services than others; based on volume and usage? How many device swap‐outs are they doing per month? If you could reduce that by 60‐80 percent, what kind of value would that represent?

Selecting the Right Managed Print Services Solution - Part Four

This series discusses some of the key factors in selecting the right MPS solution for your organization.  As an independent, time is precious.  Having fewer resources than national service organizations and the OEM's, you need to quickly assess your options, make your selection and implement it.  Hopefully, the questions we are posing help you in this process.

In parts one, two and three, we discussed how autonomous you wish to be, the need for flexibility in a solution and if the MPS solution should offer a hardware DCA, software, or both.  Our next factor is:

Will the solution meet ALL your customers' requirements?

Customers have different needs.  Some want toner fulfillment and service/repairs on an as-needed basis.   Others demand a more proactive approach, expecting toner and maintenance needs to be managed as a background process with little intervention on their part.

How Do You Demonstrate The Value of Managed Print Services to Prospects Who Seem Happy With Their Current Processes?

Engage your customer and find out what their happy about; what are their pain points and what would they change if they could. What business problems are they facing; be careful, they may not be aware that it’s a problem if they’re not aware that there’s a better approach. Nobody wants to fix what isn’t broken. You need to start by asking questions of their current processes; that’s the only way to understand and uncover the inefficiencies. Only then can you demonstrate how your Managed Print Services offering can help address their issues; saving time and money in the process. Remember that a lesser Service Provider may not be looking to address these problems; they may be ignoring them all together. Either because a mismanaged process feeds their revenue model or their simply are not equipped with the tools and expertise to become a more proactive print management partner.

What Are a Few Key Advantages of Selling a Managed Print Services Solution?

Let’s begin with the obvious; every one of us are in this to make a few bucks and that will happen by earning our customers business.   To that end, we need to be providing real value; through helping to indentify and lower hard direct and indirect costs and/or soft cost savings; hopefully, a blend of the two. If reductions can be achieved through a combination of the two, it will ultimately keep more margins in the game.  With Managed Print Services, you are able to take control; and with control, come ownership over your customer’s entire print environment. This will enable you to divert risk and incremental margins from multiple pieces of business as opposed to one primary piece. If you’re selling the toner, then get the parts; and if you’re getting the parts, sell them the repair services’ etc. And while not providing a bundle solution is no longer an option, remember the old adage. “Don’t put all your eggs in one basket” – diversify! Control how and where your margins are derived and your expenses are allocated.

When Should I Consider Converting An Existing Customers To A Managed Print Services Solution?

There’s really little time to waste; Managed Print Services is not going away and you will need to get engaged with your customers before somebody else does. Start the process of becoming a more strategic partner; one that is interested in helping your customers to solve the real business problems that they face every day; problems that are costing real hard dollars, both direct and indirect, as well as soft dollar inefficiencies. Now, you may find that their not ready to hear the entire message about Managed Print Services, or you may not have the relationships within those accounts that are interested in this message; but, start crafting it today and become proficient at understanding what business problems your solution can help address! And remember, MPS will mean different things to different people; it’s just not a one size fits all so make sure you’re your solutions and messaging is flexible and meets the customer where they are in the Managed Print mindset. Just Do Not sit on the side line waiting for another company to get in the ear of the company’s President, CFO, COO, or any other financial and strategic decision‐makers. You will absolutely lose all credibility and you will begin losing accounts if you are not becoming proactive in your MPS implementations.

Is Your Service Provider Asking The Right Managed Print Services Questions?

Managed Print Services (MPS) always starts with an engagement process of asking questions. If your calling on a customer for the first time, make sure that you begin by asking the right questions - on the front end; ones that will let them see that you’re focus is to understand their current print environment. But do more with these questions. Suggest that their current Service Provider, if their doing their job and acting in the best interest of their customers, should be able to answer these questions. Suggest that if they have not been helping to identify the answers to these questions, they are probably not worthy of your continued patronage. 

These should be core questions, some more detailed, some a little broader in scope. Nevertheless, all designed to get the customer thinking and engaged; realizing that basic information that they should already know. Information that is vital to making good business decision about their print environment moving forward. By asking these questions, and others, you will begin to define your organization as one that seeks understanding and knowledge of existing environments. Make sure that you are clear in your approach; that good decisions are based on good information; that you would never propose changes to existing environment until you had a detailed understanding about the environment and the current business processes of how print is being address – today!