With a massive budget reduction target looming, the VP of Supply Chain at this health system identified managed print as an area for potential savings. They brought in TCVG to determine how their managed print budget could be cut.
We obtained the client's invoices, agreements and inventory from their sole managed print vendor, Vereco. A detailed study of the client's records revealed a number of cost-cutting opportunities.
We discovered that more than 1,000 functional devices had been placed into storage, even as the client continued to purchase new ones. Our discovery of the unaccounted for devices allowed the client to recirculate them as needed, rather than continue to buy new printers from Vereco. With each device worth around $1,000, the client was able to eliminate $1M in future spending.
Using our proprietary national database, we found that Vereco was not offering the client the best possible rates on their managed print. We were able to negotiate reduction in costs without any decrease in labor, services or equipment.
Our audit also discovered that the client's agreement with Vereco included many services that were not being performed.
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