My earlier post touched upon how limited bandwidth and perceived costs may prevent companies from implementing a document management system. When you look deeper at the actual costs of doing nothing, as reported by people much smarter than us, the data can be sobering:
- True paper costs can be 31x the cost of paper purchased when considering storage, copying, printing, postage, disposal, and recycling (Minnesota Office of Environmental Assistance)
- Every 4-drawer file cabinet in an office requires 17 square feet to allow staff to stand in front of open draws. That space can be better used for revenue-producing staff as opposed to housing paper files. In addition to this opportunity loss, every file cabinet is costing companies hundreds of dollars per year, based on the average cost of commercial real estate in major cities approximating $50.00 per square foot.
- Approximately 8% of all paper documents are eventually lost, and the cost of replacing each document is estimated to be $250.00 (Gartner)
- The costs associated with misfiled documents is about $120 per document (Myth of the Paperless Office)
- U.S. companies spend $8 billion per year on paper alone (Bloomberg)
We have run across many other industry reports and whitepapers that report further evidence on the value of document management, but we think you get the idea. If you’d like to see how all of this industry data applies to your organization and to determine your expected cost savings and return on investment, please contact us for a free consultation.