Case Study

We discovered 1,000 unused copiers at this $11B health system – saving them $1M in new leases over the next year.

Healthcare
Managed Print

Key Findings

Annual Spend
$4,418,064
1-Year Savings
$1,908,356
3-Year Savings
$5,725,068
Annual Savings
43%

The CFO of this large health system tasked the VP of Supply Chain with an ambitious goal – reduce their overall budget by $60M.

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 started with a thorough analysis of their invoices, agreements and inventory.

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.

There were over 1,000 devices in storage.

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.

Vereco's rates were 43% higher than similar health systems were paying.

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.

Many service level requirements were not being met by Vereco.

Our audit also discovered that the client's agreement with Vereco included many services that were not being performed.

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