Transition to Paperless Documents

The idea of transitioning or going paperless can seem overwhelming initially. This however is easily swayed by the constantly increasing number of benefits found in switching from traditional paper documents. Migrating to paperless documents is not only a smart idea from the view of cost savings but it is also becoming more essential to stay competitive in most sectors of business (Ogletree, 2021). When questioning the idea of switching to paperless documents it is important to remember that there are many beneficial factors to making the migration. The process is environmentally friendly and promotes a responsible image to the public (Ogletree, 2021). There is a notable improvement in the organization of documents, making them easier to find and less likely to be lost (Ogletree, 2021). The overall efficiency of storing, accessing and sharing documents between locations and customers is much higher and less stressful (Ogletree, 2021). There is also a higher degree of security with paperless documents (Ogletree, 2021). It becomes much easier to monitor who access sensitive information, when and why.

As a company it is important to assess the actual value of transitioning from paper to paperless. The implementation incurs its own costs; however, they are just a one-time expense. This cost may seem high initially but it does provide initial savings as well as additional savings each year. In perspective the cost of the transition is less than the cost of logistics and storage of paper fore one year. Currently it is estimated $1.02 million is spent on storage annually and the transition cost is estimated to be approximately $210 thousand. The cost of consumables each year is approximately $3.5 million. This is almost three times more than the cost of transitioning to digital and the first year’s expenses combined. In the first year it is estimated that there will be a savings of $3.29 million.

Breaking down the current expenses for using paper documents will help demonstrate where the value lies in going paperless. Currently each year spending on black and white printouts and copies is $3.3 million. Color copies and printouts are $5,880.00 and carbon sheets for bills of lading and manifests are $5,922.00. Additionally, to store the paperwork $219,657.00 is spent on file boxes. Storing all this paper also has a relatively high cost. Leasing of a storage facility is costing $122,400.00 annually and an additional $302,400.00 in utilities. Transporting the documents is costing $34,320.00 and there are additional labor costs of $564,000.00 related to storing and managing the files.

The cost of paperless is significantly less. Hardware maintenance, service and upgrades are estimated to cost approximately $12,860.00 per year. An IT professional will be required at each location to oversee the paperless system and this will cost $480,000.00. There will also be a need for a team of tech support staff to be available during operating hours which will cost approximately $560,000.00 per year for twenty representatives. Training for using the new system can be implemented into the onboarding process for new staff when they are hired and current staff can be trained using online resources and hands-on training for a total cost of $27,692.00.

Within the first year of implementation there will be a savings of approximately $3.3 million. This gives an almost immediate return on investment for making the transition. Annual savings after implementation will be approximately $3.5 million. These savings are based on current costs and do not account for increases in costs to consumables, utilities and leasing rates. There will also be additional savings observed through the increased efficiency of employees and will be able to be benchmarked over the first three years.

There are several additional benefits to making the switch as well. Public perception of companies willing to switch are generally favorable (Ogletree, 2021). In the near future it is possible that government regulations will require less consumption of paper and implementing paperless now will save the later (Ogletree, 2021). Various organizations and agencies are offering incentives and rebates for switching and they may be available for some locations (Ogletree, 2021). Reducing clutter and workload helps reduce employee stress and improves the work environment.

It is clear that the transition to paperless is beneficial. The benefits are significant and continue to increase. Transitioning now not only provides immediate savings but also has long term benefits. By increasing our overall efficiency, we are creating a less hectic environment for our clients and staff. The only regret we will have about switching to paperless is we did not do it sooner.

Sources:

Ogletree, C. (2021, January 4). Going paperless: 10 benefits of cutting out the paper. Goby.

Cover Image:

Lily, T. (2020, May 29). Men working in a warehouse · Free stock photo. Pexels. Link to Image