Multi Functional Devices - Why benchmark the procurement - running costs?

| 0 Comments

 

BenchmarkMFDs.jpgAlthough very basic when compared with the multi-functional devices (MFDs) sold today, many of the same sales techniques are still used to trap unwary photocopy machine procurers, says Alan Low of Purchasing Index (PI), who ran a London office equipment company in a past life.


“It is recognised as an industry where the size of the installed base provides substantial opportunities for suppliers to enhance profits through the sale of after-sales services and supplies,” says Low. Over-specifying the model and including extras, such as stapling, etc., can add to the upfront cost and upgrading machines can also prove to be expensive, especially if it is early in the machine’s lifecycle.


Leasing or renting can also present challenges. What interest rate should apply? What length should the primary lease period be? What happens with MFDs that continue to be used after the primary lease period ends? Should you opt for minimum billing?


Operational and organisational issues also play a role. What if the organisation, division or business unit downsizes or is sold? How does one factor-in other organisational changes, such as new operational requirements, or the requirements to print less or more?


The complexities around MFD procurement and management can be ameliorated through understanding what other organisations are doing and how they manage these challenges over time, explains Low. “Sharing information in a structured and anonymous way can give participating organisations very useful insights into how the market is changing and how other procurement professionals are managing the supplier relationships.”

 

AlanLow_2013.jpgIn previous reports PI has found that the next cost per copy (rental + copy costs / number of copies) can vary by as much as 170% when comparing highest to lowest costs.


PI’s benchmarking methodology takes into account:
• Capital/leasing/rental costs
• Maintenance costs
• Paper costs
• Fleet numbers, age and utilisation
• Net cost per copy and utilisation
• Minimum billing
• Cost avoidance strategies
• Contract and SLA management
• Service and account management by the suppliers
• “Green” and environmental issues


For many years the paperless office has been predicted but never achieved; the need to manage the costs of printing and the security issues around MFDs is vital. If you would like to discuss benchmarking MFDs and other technology related spend categories, please contact Alan Low at alan@pibenchmark.co.za or Margie Mann at Margie@pibenchmark.co.za.
 

Leave a comment


SmartProcurement Newsletter
X

Please enter your details below to receive the SmartProcurement Newsletter for FREE on a regular basis.

As part of the SmartProcurement Newsletter you will be receiving World Class Procurement News, Tools, Tips, Tactics, Procurement Training updates, Upcoming Events, and the latest Procurement Career Openings.

* Email Address:
* Title:
* First Name:
* Surname:
* Company:
  Position:
* Country:
* Public / Private:

 

Career opportunites

Marketing Executive

  • <500 000 Gauteng Operations, Planning & Inventory Permanent Projects / Category Management
Geographical Area: Midrand GautengSalary: Market related2 Years Marketing ...More

Head: Supply Chain Management (P6)

  • <500 000 >500 000 Limpopo Permanent Procurement Management Supply Chain
North east of the Tropic of Capricorn, just ...More

Purchasing and Supply Manager

  • <500 000 >500 000 Gauteng Permanent Procurement Management Supply Chain
Purchasing and Supply ManagerThe CSIR has a vacancy ...More

Senior Manager Public Sector

  • >500 000 Gauteng Permanent Procurement Management Projects / Category Management
 Senior Manager Public SectorTotal Cost to Company: R1.1mil ...More

Senior Manager: Mining

  • >500 000 Gauteng Industrial Engineer Permanent Projects / Category Management
Senior Manager: MiningTotal Cost to Company: R900k – ...More

SUPPLY CHAIN MANAGER

  • >500 000 Gauteng Permanent Procurement Management Supply Chain
SUPPLY CHAIN MANAGER(Total Cost to Company R750k – ...More

Master Data Management Advisor

  • >500 000 Gauteng Permanent Procurement Management Projects / Category Management
 MASTER DATA MANAGEMENT ADVISOR(Total Cost to Company R750k ...More

PRO - Performance Reporting

  • >500 000 Permanent Procurement Consultant Procurement Management Projects / Category Management
PRO - Performance ReportingTotal Cost to Company: R800k ...More

PRO - Risk & Governance

  • >500 000 Gauteng Permanent Procurement Management Projects / Category Management
PRO - Risk & GovernanceTotal Cost to Company: ...More

Supply Chain Site Manager

  • >500 000 Gauteng Permanent Procurement Management Supply Chain
Supply Chain Site ManagerTotal Cost to Company R1mil ...More

Chief Financial Officer

  • >500 000 Gauteng Permanent Procurement Officer / Specialist
Chief Financial OfficerTotal Cost to Company R1.5mil – ...More

Process Engineer- WMS

  • <500 000 >500 000 Industrial Engineer Permanent Projects / Category Management Western Cape
Process Engineer- WMS(Total Cost to Company R350K – ...More

Forecast Analyst

  • <500 000 Analyst Permanent Procurement Management Western Cape
Forecast Analyst(Total Cost to Company R350K – R500K) Location: ...More

Group Category Manager: Indirects

  • >500 000 Permanent Procurement Management Projects / Category Management Western Cape
Group Category Manager: Indirects(Total Cost to Company R700K ...More

Group Category Specialist: Chemical

  • >500 000 Gauteng Permanent Procurement Officer / Specialist Strategic Sourcing
Group Category Specialist: Chemical(Total Cost to Company R700K ...More

Sourcing Specialist - 3rd party

  • >500 000 Gauteng Permanent Procurement Officer / Specialist Strategic Sourcing
Sourcing Specialist - 3rd partyTotal Cost to Company ...More

Global Procurement Lead (Processing)

  • >500 000 Gauteng Permanent Procurement Management Supply Chain
 Global Procurement Lead (Processing)Location: JohannesburgTotal Cost to Company ...More

Global Supplier Performance Manager

  • >500 000 Gauteng Permanent Procurement Management Supply Chain
Global Supplier Performance Manager Location: Johannesburg  Cost to ...More

Group Customer Service Lead

  • <500 000 >500 000 Analyst Gauteng Permanent Procurement Officer / Specialist
Group Customer Service Lead  Location: Johannesburg As the ...More

Business Intelligence Manager

  • <500 000 >500 000 Gauteng Permanent Procurement Management Supplier / Business Development
Business Intelligence Manager Location: JohannesburgLead the development, implementation, optimization ...More