How do you take your average enterprise printing set up and then lower costs by half, save over Rs. 40 lakh a year, and ensure a 98% uptime? Ask Siemens and Ricoh.
Siemens, a world-class solution provider in the engineering and manufacturing segment, plays a key role in India’s quest for developing modern infrastructure. As a company, Siemens is committed to drive causes which maximise value and minimise costs. But that’s not always easy when the company operates more than 50 offices in 25 cities and has to assimilate additional people and infrastructure after strategic acquisitions.
Tackling cost challenges
Siemens, a Rs. 12,000 crore company, was looking at scaling down its overall costs and managing core operations more effectively. Satish Kotgire, Head-IT infrastructure, Siemens, chose to strategically outsource non-core, yet vital areas of the company’s IT and business processes.
His team identified the opportunity to lower overhead costs in the company’s document and output management processes. “We wanted to centralise our IT spending for printers, copiers, consumables, and production sites with the goal of reducing operational and maintenance costs. This would eventually improve our cost structures related to document output,” says Kotgire.
Siemens is also committed to a multi-faceted environmental sustainability plan consisting of staff education, a reduction of solid waste, and decreased energy consumption and greenhouse gases. Therefore, Kotgire and his team chose to implement a solution that could support Siemens’ environmental sustainability goals.
The task of managing equipment, printing and distribution, billing, reporting and meeting the needs of over 14,000 employees was daunting, and with no central means of managing overall costs. That’s why Siemens chose to partner with Ricoh. “We looked to Ricoh to leverage its expertise, experience and global presence to support us,” says Kotgire.
Controlling output costs
Kotgire began by establishing a baseline – “The first step was to make a thorough assessment of our office infrastructure. That revealed a surplus of under-utilised devices,” he says. His team and Ricoh found that there was a need to manage nearly 700 devices. “This meant that we had 20 employees, on average, to each device. Approximately 26% of these devices were either out-of-date or malfunctioning, and were responsible for excessive print costs”.
His team also discovered that there was a lack of asset management and cost control for printers, supplies, and the management of devices. Complicating the situation was the fact that Siemens had five or more vendors supplying print/copy services with varying consumables, support and billing. After a thorough study, Ricoh recognised an opportunity to optimise, rationalise and provide standard technology platforms to Siemens’ office environment.
Kotgire decided to implement a centralised programme to shrink the company’s total annual document output costs. A large portion of Siemens’ output fleet was replaced with Ricoh MFDs – a newer, more cost-effective, and more energy-efficient technology approach to document management.
Siemens, with the help of Ricoh, set up an asset database to track, bill, and report documents across India. It also created an integrated printer and IT help desk that logs and tracks all user inquiries and service calls.
Ricoh is also helping Siemens to achieve its sustainability goals by introducing Ricoh’s new Quick Start Up (QSU) technology, an energy saving methodology with PxP toner multifunction devices that result in 25% less waste than typical laser printers. Ricoh diligently recycles toner cartridges according to its enterprise sustainability guidelines.
In addition, Ricoh ensured that double-sided (duplex) print is a default feature on all its devices. “We have now established an ongoing data-gathering process and critical performance metrics through quality tools, which will eventually form a part of Siemens’ framework for continuously improving the quality of our customer service,” says Kotgire.
Efficient service delivery
Siemens was impressed with Ricoh’s rapid implementation of equipment and services right from Ricoh’s MDS program. Kotgire was able to gain complete control of output costs. “We achieved a 55% decrease in costs per page, as we removed 250 output devices and simultaneously increased our employee-to device ratio by more than 35%. This has enabled us to achieve our financial and document management goals to a great extent,” says Kotgire.
Overall, Ricoh has successfully helped Siemens to save 30% in costs, amounting to over Rs. 42 lakh a year. Siemens also experienced a significant reduction in its asset base and notable improvements in its printing processes.
Siemens has now decided to continually expand its relationship with Ricoh by including other subsidiaries into the plan. Using Ricoh’s proven model, Siemens will continue to control functions such as helpdesk, break/fix, supplies management, asset management, and proactive device management for all Ricoh and non-Ricoh devices in the company’s offices nationally.
Says Satish Kotgire, “Ricoh’s technology, knowledge, and process deliver value to our business units, cost savings to IT, and the ability to re-invest those savings in IT innovation.”
- 55% decrease in average cost per page
- 30% cost savings, that translates to over Rs. 42 lakh a year
- 98% equipment uptime
- Improved employee-to-device ratio by over 35%
- Proactive monitoring of devices
- Standardisation simplifies overall output environment, yet allows for regional/local flexibility
- Scalable, replicable global solution
- Centralised cost control
- Improved regional application and workflow