Main Trends and Opportunities for Sourcing
Have you ever experienced a tiny bit of guilt when printing a work email or a long report? Be reassured that you are not alone! As the world is going steadily and confidently digital, reading on paper appears to be an old, expensive and not-very-green habit. Nevertheless printing documents still has a place in today’s organizations, but that place is undoubtedly going to change in the next few years.
Managed Printing Services as a mature market
10 years back, Managed Print Services (MPS) was being launched as the new thing in the printing world. Today MPS can be defined as the service offered by an external service provider to manage a company’s document output with the objectives of driving down costs, improving efficiency and reducing the IT support workload. MPS’s main service components are the assessment of printing needs, replacement of hardware and the service (parts and supplies) needed to operate the new or existing printing devices.
The early adopters of MPS focused first on the fleet management of their devices, with simple services being requested from suppliers. Most of the companies realized in this process that their printing environment was far from optimal: multiple hardware brands, different types of devices, inefficiencies in the allocation of devices per user and security issues. Especially after the crisis of 2008, suppliers were challenged to focus more and more on cost efficiency, on the fleet optimization and on reducing printing outputs. For MPS suppliers this meant a growing business dilemma: how to keep in business, when most of the customers are promoting actively the reduction of printing?
Today most of the large organizations have adopted MPS and have tackled, to some extent, the inefficiencies of their printing environments, still new areas of focus are rising for MPS. Suppliers are challenged to integrate consumer’s mobile revolution in the workplace, while making information easily available in a context of growing concerns about security and shrinking budgets for printing.
Key trends influencing the evolution of MPS services today:
So what does the future look like?
Managed Print Services are already transitioning their focus to broader Document Management Solutions, aiming towards the digitalization of critical documentation and information workflows, while improving mobility and security issues. Mobile applications to facilitate document reading and printing, global secure access to printers for travelers and implementation of document workflow are examples of the future direction of these services, which will be increasingly delivered through the cloud.
What’s the impact for Sourcing and Supplier Management?
If you are close to contract expiration date, consider that it’s a good time to think about tendering your printing services contract. On one hand, the mature market represents more competition and lower margins, with higher possibilities of reaching interesting savings. On the other hand it’s a good moment to evaluate the potential value added that these new services in MPS can bring to your organization, not only from an IT perspective, but also for business operations.
Interested in knowing more about Managed Print Services?
Elemica can provide you with more information about key market players, pricing models and key efficiencies areas. Past recent tenders have revealed interesting outlook on savings, reaching 15% to 35% of spend.
Please contact Elemica at: email@example.com