Purchasing power

It’s a foregone conclusion that your company and its employees need technology
to conduct day-to-day business. Yet many companies don’t have a technology purchasing management solution in place, and some
have probably never examined their technology purchasing and maintenance processes.

Companies spend a lot of money on technology devices and the consumables for
those devices, yet, many times, purchases are
made with no rhyme or reason, and thousands of dollars are wasted. Different departments manage different devices, devices are
procured from various vendors, rental and
maintenance costs are not identified or measured, and devices and their components are
misused and underutilized. Thus, more and
more companies are looking at consolidated
purchasing solutions.

“The key is to understand your company’s
total environment, simplify your technology
purchases and save money,” says Becky
Connolly, the director of computer and imaging supplies and accessories at Technology
Integration Group (TIG). “Therefore, it only
makes sense to partner with one supplier
who can be your one-stop resource for all
technology needs.”

Smart Business spoke with Connolly
about how purchasing consolidation can
help you cut costs, leverage your purchasing
power and improve the bottom line.

How do you know if consolidation is right for
your business?

Consolidation is right for all businesses, no
matter how big or small. You need to look at
your technology vendor as a partner instead
of as a supplier. If you buy a computer from
one company, why would you buy the
peripherals from a different company? If you
buy a printer from one company, why would
you go elsewhere to contract service or buy
the consumables from yet another company?
Why not stop employees from renegade
spending. Having one supplier to outfit your
company with everything it needs makes
sense and this consolidation will gain your
company access to better purchasing power
and will save money.

Consolidation allows you to leverage this
purchasing power, giving you better prices
on equipment and supplies, a full understanding of what you are spending — and
why — and an entire big-picture view of your
corporate environment. This shows you
exactly what your spend is, so that instead of
variable spending, you can approach spending with accurate fixed costs and savings.

Where do companies usually waste the
most?

Companies often start off with small systems and continue to add pieces over the
years as business grows. This usually leads to
machines and technologies that end up
underutilized or not used at all. If you ask
some companies how many printers they
have, for instance, they may not have a clue.
Why pay for something that does nothing but
collect dust?

With regard to printing, research from
Gartner Inc., an information technology
research and advisory company, shows that
printing costs are 1 to 3 percent of a company’s gross revenue. Thus, despite all the talk
about moving towards a ‘paperless world,’
companies are still printing everything. So a
print management solution is a recommended part of any consolidation plan.

What is a print management solution, and
how would a company implement one?

A print management solution is a key part
of a consolidation plan. You and your chosen
technology partner should work together to
determine exactly what printing devices you
need and why and when you’re going to get
them. As part of this process you should consider a print management solution.

The first step in a print management solution is to identify where your biggest printing
problems are, and then do what is necessary
to eliminate those pain points. Your technology partner will conduct a comprehensive
assessment to identify just how much you
are spending — and wasting — on printing,
including costs for devices, cartridges, toner
and maintenance. Then, recommendations
are made to help you find the solution that’s
best for you. There are many ways to improve printing efficiencies. Sometimes, it’s as
simple as a balance deployment plan, moving
your current devices into areas where they
will be better utilized. Another easy improvement is streamlining printer locations, reducing document flow or switching from costly
inkjet printers to laser devices.

Usually, it will take time to change a company’s printing culture. The net result, however, will be increased productivity, less
waste, less maintenance, streamlined supplies purchasing and lower overall costs.

Is there often resistance from employees
when you make changes?

Most people are resistant to change,
whether it be that they can no longer purchase their own supplies, that they now have
to go down the hall to access a printer, or that
certain software will no longer be used.
When implementing a technology consolidation plan, you can’t just expect employees to
adjust with no questions asked. Meet with
each decision maker and each department to
get feedback and buy-in from everyone. If
employees understand what you’re trying to
accomplish and can see the benefits that will
come from a consolidation solution, they’ll
be more likely to embrace the change.

BECKY CONNOLLY is the director of computer and imaging supplies and accessories at Technology Integration Group (TIG). Reach
her at (800) 858-0549 x4100 or [email protected].