The raison d’etre or the purpose of the existence of any business is to make profits. To increase profits, the business has to strive to increase its sales revenues. But when the economy is in a state of flux like it is now, focussing all your attention on trying to boost revenues might not be enough. You have to do something more! You have to reduce your operational costs. There are many ways to do that but one major area where you can cut costs is by finding a way to efficiently manage and store your documents!
How Effective Document Management Can Save Dollars for you?
Documents are the nerve system of an organization. They are indispensable for the smooth flow of communications between a business and it’s key stakeholders. If an important document is lost or damaged or stolen then the consequences for the business can be negative or even disastrous. Organizations, therefore, spend substantial resources on storing, managing and retrieving documents.
The technological advancements of the last decade have given us an easy and effective way to manage documents – by digitizing them and storing them in electronic formats. Specialized software like document management systems or professional document management services can radically change the way you conduct your operations and bring you savings in cost in myriad ways. Here are some specific operational costs that will see a significant reduction.
1. Business costs
An effective document management system helps businesses systematize workflows. The positive impact of improved workflow cascades to all areas of the business – sales, operations, customer service, and even workforce motivation. Needless to say, this efficiency contributes greatly to the overall financial fitness of the organization.
2. Storage and Supply costs
Increasing commercial property costs has made office space an expensive resource. Physical document storage demands space and storage provisions like cabinets, files, and vaults. Buying and maintaining these storage spaces can be a constant burden on your finances. Paper-based documents also necessitate the use of stationery and office supplies like papers, ink, toners, pens, and printers. A digital document management service spares you from these expenses.
3. Copying and Printing costs
Another advantage of digital storage of documents is that it makes document distribution much more simple. You can create the document and use the access control feature of document management systems to share access to multiple users. This eliminates the need to make multiple copies of the original document for distribution within the office. You gain savings on the purchase and maintenance of copiers and printing stationery.
4. Postal & courier costs
In a distributed work environment sending your documents to employees or suppliers in remote locations through post or courier can consume time and money. Document Management Systems allow remote access to documents. So documents can be shared with remote employees as soon as they are created or can even be created in collaboration with them.
5. Relocation costs
Relocating your business is a challenging ordeal, especially if you have to move hundreds and thousands of physical documents with storage cabinets and set them up again in a new place without loss or damage. The time, labor and money that such a move requires can be staggeringly high! With digital documents, relocating can be as simple as just logging in to your document management system.
6. Non-compliance costs
Research indicates that the average cost of non-compliance for businesses in the US is around $ 14 million. Non-compliance if discovered can cost a business heavily not only in fines and legal fees but also in loss of productivity. An effective data management service streamlines process flows, leads to greater transparency and facilitates compliance.
7. Security and Disaster recovery costs
Physical documents pose a challenge not only in storage and maintenance but also in data safety. The loss from a data breach can weigh down your business when you least expect it. To prevent such losses businesses are forced to invest heavily in implementing and maintaining physical safety systems. In the event of disasters like fire or flood, even such elaborate safety systems can fail. Adopting Document Management Systems with in-built security features does away with such risks.
8. Loss due to delayed customer service
The major kickback of a failed or delayed document retrieval is the loss it brings in customer goodwill and trust. In today’s fast-paced life, a customer has all the information he needs and demands instant service. If you are unable to meet the expectation the customer moves on to a product or service which doesn’t make him wait. A document management service helps you increase customer satisfaction and retention.
9. Retrieval costs
The losses that a business incurs in searching for a misplaced document and duplicating work can accumulate over time to create a significant dent in profits. With professional document management service and cloud storage, document retrieval becomes easier and less expensive
10. Loss of productive time
Document management systems reduce the time your employees spend on unproductive, peripheral activities like searching for documents, making copies or organizing files. This time can be spent on core activities that directly contribute to your bottom line. All these savings can add up to a big impact on your firm’s financial health in the long run. So if you want to reduce costs and push your profits up, your best bet is to engage a reliable document management service. Rannsolve specializes in document management and provides high-quality data conversions,web-researches, AP processing and image processing with quick turnarounds. Contact us for more information and a free consultation.