When we encounter a company that has resisted EDM we get the same common reasons over and over. Here are most of the reasons that many haven’t been using an EDM system detailed below.
Seems Too Risky
In a lot of companies, there is a reluctance to scan and shred documents. They feel safer somehow keeping all hard copies stored where they can paw through them. This consumes space in the office or requires spendy offsite storage. I contend there is no good reason to be afraid to scan and shred most of your paper documents. EDM is also a good disaster recovery program that guarantees your documents will still be available when you need them. And because electronic documents are easily searchable, your documents are much more likely to be quickly found when you want it.
Physical documents are susceptible to disasters such as fire, flood, tornado and so on. Files are easy to misplace or even lose. They can also be altered. All this and more poses a threat to paper documents that can be simply overcome with EDM. Just because you keep paper documents at your business doesn’t guarantee you will find that document when needed most. By comparison, the risks of paper looms large and it quickly becomes clear EDM is the safest solution.
You’ll get ROI in 3 basic areas: increase in office space, eliminate offsite storage costs and you’ll increase productivity through quickly filing and retrieving documents. Let’s look at some figures.
Calculating the Average Hourly Wage for Admin/Filing Staff and Employee Benefit/Burden ($15 hr.) you could multiply it by the monthly cost to file new documents. That might look like this:
1500 new files added per month
2 minutes to file each
$750.00 Total saved (Wow, now you are getting somewhere!)
Monthly cost to retrieve documents
5 people who retrieve documents
5 Documents retrieved per person, per day
3 Average time to retrieve each document in minutes
20 workdays per month
$0.25 Average labor cost per minute
Now lets figure the cost of storing the paper onsite.
35 Four drawer filing cabinets
8 Sq. ft. for a single cabinet
$1.60 Office space lease Sq. ft.
$448.00 Total rental cost for on-site file storage
Monthly cost for supplies
(Cost for supplies per 500 files stored per month =$200.00. This is paper, hanging files and manila folders, bankers boxes. Ex 1000 files = 400.00)
I’m not even figuring monthly cost to find misfiled/mislabeled documents nor a bunch of related miscellaneous costs, but I come up with about $1850.00 dollars savings per month.
If I told you that EDM can pay for itself AND save you $$$ monthly, would you believe me? Hopefully seeing is believing because I know a company that can offer Electronic Document Management for small to medium sized businesses for under $500 per month. How would you like to have safety, security, and convenience for your documents AND put about a thousand dollars a month back into your profits?
See for yourself with this ROI calculator here.
The question is “Why aren’t you using Electronic Document Management?”