Vendor Consolidation: Realizing $300k in Annual Savings

What We Faced

Challenge

A nationwide Construction Services Provider had pursued a merger and acquisition strategy to expand their capabilities and regional footprint. The company’s printer hardware environment was fragmented, with a variety of different makes and models of printers in use. To gain efficiencies, they were looking to integrate all of their networks, standardize print hardware, and improve service quality through vendor consolidation. The company wanted to use its new collective size to negotiate pricing with top print vendors while providing top level service for its company divisions.

IT staff spent more time troubleshooting and managing printer problems because it required learning and supporting a variety of different printer models.
Unnecessary spending on purchasing printer supplies and support maintenance due to diversity of printers.
Frustration with printer environment due to reliability issues, with some old, discontinued models still in use.
Multiple leases, leasing companies and manufacturers, with extremely high rates for multi-function printers (MFPs).
No secure print features, requiring multiple individual printers by department for sensitive and confidential information use only.

What We Did

Solution

To address these problems and realize scale benefits company wide, the company needed to consolidate printer hardware technology. MRE Consulting was selected to plan and manage the project to evaluate 18 print vendors to identify the best fit. The evaluation by MRE consisted of assessing regional coverage, service capabilities, and business case / cost. In addition, surveys were conducted with the internal IT team to collect current pain points, experiences with service providers, and feedback from the vendor proposal presentations. The project identified two final vendors, which combined, could provide the necessary regional coverage. MRE negotiated with them to move forward with a joint proposal.

What We Delivered

Results

Under MRE’s guidance, the project facilitated the consolidation of printer technology under a joint agreement with two vendors for a cost savings of $300k annually. In addition to the annual cost savings, the consolidation of printer technology and vendors enabled:

Printing environment standardization. Making it easier for both users and IT to manage printers and troubleshoot problems, increasing efficiency and user satisfaction.
Improved printer security. By working with a single vendor, the organization could create a comprehensive security plan for the printer fleet.
Better customer support. With a single vendor for each division, there was improved customer support experience.