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How to Save Money with a Document Management System in 2020

2020 Budget: Saving Money with a document management system

As 2019 comes to end, many companies are in the process of approving their 2020 budgets. As your company looks to improve efficiency and lean out on unnecessary expenses, it may be time to consider investing in a document management system (DMS). If your organization manages many different documents and processes like policies, procedures and employee training; a DMS can streamline your internal processes and save you money at the same time. Moving to a DMS may seem like a complicated undertaking, but it can actually be a pain-free process with the right software vendor. Read on to learn how these systems can save your company time and money by enhancing your company’s overall efficiency and reducing your reliability on paper.

Enhance overall office efficiency

Your company cannot afford to waste time sorting through and trying to locate essential business documents. Whether you currently store them in physical files or across several different digital platforms, upgrading to a DMS will increase your employees’ efficiency. According to a McKinsey report, employees spend an average of 1.8 hours per day (9.3 hours per week) searching and gathering company information. In addition, as many as 20% of business hours are spent searching for information that is essential for employees to do their jobs effectively.

Switching to a DMS would allow your company to cut these numbers down significantly. Document management systems provide a central location for all your business’ documents, media, and files. Employees will not need to save files to their computer hard drive or a USB stick, they simply log into their management system and any document they may need is available in seconds. The time your employees would be spending shifting through paperwork or recovering lost documents can be used for more essential and important business practices, increasing overall efficiency and saving money.

Reduce reliability on paper

If you are still using a traditional paper system, switching to an electronic document management system will help your company reduce its dependency on paper and save costs for filing, maintenance, and printing. This switch will create a positive effect on your company’s bottom line.

On average, US companies spend approximately $20 on labor costs in order to file a document, $120 on the labor required to find a misfiled document and $220 to reproduce a lost document, according to accounting firm Coopers & Lybrand. And, the Delphi Group states that “Companies on average spend $25,000 to fill a typical four drawer file cabinet, $2,000 to maintain it annually”. By simply implementing a DMS, these company costs can be eliminated entirely, saving your business thousands of dollars per year.

For example, Imperial Manufacturing, based in Portland, estimates that it saves $6,500 annually just by using a paperless system. Rex Plombon, Imperial’s Accounting Manager stated: “using a universal file-naming system, our database has information at our fingertips… The result is a more well-equipped workforce that is not only efficient but communicates at a higher level. Going paperless also reduces expenses you may not have thought of - toner, stamps, and stationery”. Switching from a paper to a digital document management system is a win-win situation for your business. Any upfront costs associated with a DMS will be worthwhile in the long run when the effects of going paperless positively affect your company’s bottom line. And cost savings aside, a paperless company is also an eco-friendly company.

How DocXellent Can Help

Our document management software, ENSUR, is user-friendly and easily configurable to fit your unique business cases. Whether you want to start out small with the opportunity to grow, or you want a feature-rich enterprise solution with unlimited scalability, ENSUR is flexible and scalable to your organization. And with our migration services, moving your data into our ENSUR document control system has never been easier.

We proudly offer unparalleled customer service to help you and your team integrate ENSUR into your organization. Contact us for a demo or for more information about our ENSUR Document Management Software and DocXellent Managed Cloud solutions to improve your company’s efficiency and reduce your reliability on paper.

Tags: document management software, document management system, dms software, save money