On a recent webinar, it was stated that 65% of total cost for an MPS program is associated with consumables and supplies. This can be as high as 75% when we consider the A4 conversion going on. Business firms that offer MPS to their customers must continue to focus on this area to improve their MPS programs.
There are many variables that stack up to make an effective MPS program for your customers. One of the variables is associated with shipping consumables. Customers don’t want to stock extra supplies and you don’t want to ship too many supplies, so how we do find the happy medium? First, it’s important for customers to know that they don’t need to replace the toner cartridge the minute it says running low. Are your reps and specialists speaking to customers about your process for shipping toner and why they don’t need to duplicate efforts? Have you invested in dedicated staff to track toner usage and help proactively manage the program? Do you have any kind of system alerts, such as email notifications to customers, before the toner ships? One of the things you can do is make sure your sales reps can easily explain your MPS program to your customers including the importance of managing the supplies.
Another trend we are seeing is the potential growth of inkjet. According to a recent KeyPoint Intelligence study, 2017 was the year that inkjet in the office is expanding. Epson, Canon, HP and Brother continued making investments in business class inkjet and Riso launched the first high speed (120 ppm) inkjet for the office market. How does your MPS program handle inkjet? What are your plans to proactively consider the growth here to incorporate it into your program? How will you track it? As you can see in the chart below, Inkjet serialized segment 3 forecast the highest growth in the next several years.
Business Inkjet vs Laser: 2016 – 2021 North America Placements Forecast
We’ve heard the term “Everything as a Service” associated with the future of Managed Print Services. Let’s also consider “Print as a Service”. In a recent study, we found that vendors will intensify efforts to increase user loyalty by offering various plans to add service components to supplies. MPS is well-penetrated in large organizations, but it has not had the same success in SMB. OEM’s are looking for the right formula to convert SMB’s from transitional to a contract sale or a subscription type program. Other plans, such as fleet supplies, auto-order or individual device re-order will continue to be analyzed and developed.
Fleet optimization is another variable to look at. Talk to your customers about how you can help them design solutions around their workflow during your quarterly business reviews. Most dealers successful in the MPS world are adjusting or making tweaks along the way that help customer’s control their costs in printing. A simple thing like swapping one device for another one based on volume, removing the costliest devices and shifting pages to workgroup printers are all good examples of fleet optimization and right-sizing of the fleet conversations you should be having on a regular basis.
Are you using tools that can help track page yields per cartridge, volume per machines and end-user printing? By adding advanced behavior modification software, you can help drive down costs of printing by 20% or more. Simply by having tools to indicate where to send print job based on the specific job is one way this type of software can help. It can also eliminate printing and with the savings from not printing, you can help your customers use these dollars in process automation tools for their business workflow.
Currently digital tools like email are most likely replacing print though many other options exist with document collaboration tools and business process automation. Does your firm have a paper reduction policy? If so, what resources and tools are being used? How are you marketing this to help your customers? Are you considering factors such as security in printing?
Paper Reduction Policies in SMB’s and Enterprises
The dealers who intensify efforts to increase user loyalty by offering various plans to add service components to their supplies, move into subscription programs such as “everything as a service” and offer security services will continue to be on the leading edge of MPS.
The future of MPS is today and beyond.
