Document Mismanagement: All That Paper is a Huge Money Pit
A big drain of company resources and thus a very fertile ground for sensibly cutting operating costs is in document management or should I say document mismanagement. Without even realizing it, most companies waste many thousands of dollars every year filing, storing and then retrieving or recreating lost documents. This expense could be averted by moving these documents into an efficient digital repository that can be easily accessed from anywhere and anytime.
In the past many businesses could not afford this type of solution because it once cost tens of thousands to acquire such a document management system. However, today with web-based solutions like FileBound you can get started for a couple of thousand dollars.
A Coopers and Lybrand Study provided these numbers which when you add them up provide a very compelling argument for embracing a document management solution. The study revealed that 90% of documents that are handled in an office are merely passed along or shuffled through at a tremendous cost.
They found that on average it costs:
- $20 to file a document
- $120 to find a misplaced document
- $220 to replace a lost document
The study also revealed that in most companies:
- 7.5% of all documents get lost
A sample office that generates 200 documents a week will lose 15 of them, costing the company $3300
- 3% get misfiled
A sample office generating 200 documents a week will misfile 6 of them, costing the company $720
- 50% of a professionalís time is spent looking for information. Only 5-15% is used in reading the information
Consider the number of documents you process each week in your company and the numbers add up immensely. There is also the added benefit and value of “Going Green”.
If you would like to know more, I suggest viewing this recorded webinar: Document Management – The Basic and Best Practices on a Limited Budget