Greening the Business Process - Steve Hatajlo, Faxinating Solutions Inc.


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Greening the Business Process - Steve Hatajlo, Faxinating Solutions Inc.

  1. 1. GREENING THE BUSINESS PROCESS Steve Hatajlo President – CEO Faxinating Solutions Inc.
  2. 2. Greening the Business Process
  3. 3. Paper by the Numbers <ul><li>Between 2007 and 2010: </li></ul><ul><li>IDC estimated that 10 trillion pages were printed in the US </li></ul><ul><li>Hewlett Packard estimated 53 trillion pages were printed worldwide between 2007 and 2010 </li></ul><ul><li>Paper usage worldwide will grow by 3% annually </li></ul>March 2008 – Xerox White Paper “The Less Paper Office”
  4. 4. The Problem with Paper <ul><li>Expensive to process – up to 15% of company’s annual revenue </li></ul><ul><li>Costs include printing, filing, data entry, indexing and storage </li></ul><ul><li>Represents both a security and compliancy risk </li></ul><ul><ul><li>Misplaced documents </li></ul></ul><ul><ul><li>Documents inadvertently left out in the open for un-authorized personnel to see </li></ul></ul>
  5. 5. Current Paper Processing Trends <ul><li>AMR Research estimates only 20% of all orders in retail supply chain are fully automated. </li></ul><ul><li>Another 20% are sent electronically but still require manual intervention </li></ul><ul><li>Many products for general corporate operations (pens, pencils, paper, toner) are manually ordered and utilize paper-based processes </li></ul>Sustainability and B2B Outsourcing – GXS Whitepaper
  6. 6. Manual Processing <ul><li>Average manual data entry error rate is between 2% and 5% </li></ul><ul><ul><li>Compliance issues </li></ul></ul><ul><ul><li>Higher transport cost </li></ul></ul><ul><ul><li>Slower collection of receivables </li></ul></ul><ul><ul><li>Inaccurate inventories </li></ul></ul>Sustainability and B2B Outsourcing – GXS Whitepaper
  7. 7. So how much does this end up costing?
  8. 8. Cost of Processing a Paper Transaction <ul><li>Purchasing Today™ – “Experts estimate that it costs companies between $100 and $150 to process every paper-based purchase order, regardless of whether it for a $500,000 piece of operating machinery or $30 worth of paper clips.” </li></ul><ul><li>$96 – according to Ernst & Young . </li></ul><ul><li>$150 – according to Gunn Partners . </li></ul><ul><li>$190 – according to Deloitte & Touche study of 18 large companies. </li></ul><ul><li> </li></ul>© 2009, Data Interchange Standards Association
  9. 9. Cost of Processing a Paper Transaction May 2009 – – Eliminating Waste in Supply Chain Management Average cost per PO is roughly $26.00
  10. 10. Can you give us a real-world example?
  11. 11. ENVIORONMENTAL IMPACT <ul><li>Saving Almost $16 Million By Reducing Paper And Office Equipment - February 13, 2011 </li></ul><ul><li>Ontario is reducing the amount of paper and office equipment the government uses, saving millions in taxpayer dollars. </li></ul><ul><li>Over the next two years, the government will save $15.6 million by: Eliminating more than 15,000 printers and computer servers saving $8 million. That's almost a 50 per cent reduction. </li></ul><ul><li>Cutting paper usage by 50 per cent saving $7 million. </li></ul><ul><li>Reducing the number of office fax machines by centralizing them, saving $640,000. </li></ul><ul><li>In addition, the government has reduced the number of daily news packages it prints by 96 per cent over the past six years, saving more than $1.5 million. They will be eliminated entirely by the end of March. This will save Ontario nearly $600,000 each year in paper and printing costs and save almost 5,000 trees compared to 2004 when approximately 41.5 million pages were printed annually. </li></ul>© 2009, Data Interchange Standards Association
  12. 12. ENVIORONMENTAL IMPACT <ul><li>QUICK FACTS </li></ul><ul><li>The reduction in equipment will save 30.5 million kilowatt hours a year. That's enough energy to power 2,767 houses for one year; a savings of approximately $2 million and it will reduce CO2 emissions by 6,750 tonnes annually. </li></ul><ul><li>Reduced printing will also save more than 200 million litres of water annually used to produce office paper, and reduce toner cartridge use and reduce the amount of waste generated every year. </li></ul><ul><li>The Ontario government established an e-waste program that directly supports environmental sustainability by diverting government e-waste (surplus computers, printers, etc) from landfills. More than 1 million kilograms of e-waste has been recycled to date. </li></ul><ul><li> </li></ul>© 2009, Data Interchange Standards Association
  13. 13. The Green Benefits of Less Paper Sustainability and B2B Outsourcing – GXS Whitepaper
  14. 14. How can you do your part?
  15. 15. Reduce Paper & Become More Efficient <ul><li>Implement e-Commerce, EDI, XML initiative </li></ul><ul><li>Implement Document Management System </li></ul><ul><li>OR </li></ul><ul><li>Partner with a Third Party Service Provider </li></ul><ul><ul><li>Work with a Third Party Service Provider </li></ul></ul>
  16. 16. The Pros and Cons of an e-Commerce Initiative <ul><li>PROS </li></ul><ul><ul><li>Reduces manual intervention </li></ul></ul><ul><ul><li>Increases accuracy and speed of processing </li></ul></ul><ul><ul><li>Raises efficiency and potentially profitability </li></ul></ul><ul><li>CONS </li></ul><ul><ul><li>Initially costly to implement </li></ul></ul><ul><ul><li>Not everyone will be compliant </li></ul></ul>
  17. 17. The Pros and Cons of Document Management <ul><li>PROS </li></ul><ul><ul><li>Decreases but does not eliminate manual intervention </li></ul></ul><ul><ul><li>Does not require changes to current business process </li></ul></ul><ul><ul><li>Allows quick access to records </li></ul></ul><ul><li>CONS </li></ul><ul><ul><li>Very costly to implement and maintain </li></ul></ul><ul><ul><li>OCR/ICR is not 100% reliable: manual processing </li></ul></ul><ul><ul><li>Content management: indexing vs. full text </li></ul></ul>
  18. 18. But your best option is….
  19. 19. Why Partnering With a 3 rd Party Is Your Best Option <ul><li>Reduces operational/overhead costs </li></ul><ul><ul><li>Reduces need for dedicated, in-house personnel, investment in hardware, software and on-going training </li></ul></ul><ul><ul><li>Speeds up transaction process and improves accuracy </li></ul></ul><ul><li>Facilitates access to a broader client/supplier base </li></ul><ul><ul><li>Able to meet communication/trading requirements more easily </li></ul></ul><ul><li>Provides greater flexibility and adaptability </li></ul><ul><ul><li>Enables you to leverage new technology or functionality more quickly </li></ul></ul>
  20. 20. How to Choose a Third-Party Provider <ul><li>Expertise in EDI /XML outsourcing and ERP integration </li></ul><ul><li>Partnership-enabling program </li></ul><ul><ul><li>Broad range of capabilities to meet diverse technology requirements within specific SLA requirements </li></ul></ul><ul><li>Key Capabilities </li></ul><ul><ul><li>Web services - File upload, Audit Trail, CSR interfacing </li></ul></ul><ul><ul><li>Basic services: FAX/EMAIL-to-EDI/XML and EDI-to-FAX/EMAIL/XML conversion, FTP file acceptance </li></ul></ul><ul><ul><li>Business rule validation to reduce manual keying errors </li></ul></ul><ul><ul><li>Workflow/audit trail/data access/encryption for SOX, HIPAA compliancy </li></ul></ul><ul><ul><li>ERP, accounting package and e-form integration, development & support </li></ul></ul><ul><ul><li>Application integration services for proprietary and legacy systems </li></ul></ul><ul><ul><li>EDI compliancy testing </li></ul></ul><ul><ul><li>Secure VAN, AS2, FTP, EMAIL or other network access </li></ul></ul><ul><li>Pay-per-use or SAAS model – CLOUD PROCESSING </li></ul>
  21. 21. Reducing Paper with Faxinating Solutions - Demos <ul><li>EXACT© FAX/EMAIL-TO-EDI </li></ul><ul><ul><li>Unstructured Form </li></ul></ul><ul><li>EXACT © Thin Client </li></ul>
  22. 22. Questions © 2009, Data Interchange Standards Association
  23. 23. Contact Information <ul><li>Steve Hatajlo President – CEO Faxinating Solutions Inc. </li></ul><ul><ul><li>6600 TransCanada Highway Suite 209 </li></ul></ul><ul><ul><li>Pointe-Claire, Qc H9R 4S2 </li></ul></ul><ul><ul><li> </li></ul></ul><ul><li>[email_address] </li></ul><ul><li>1-800-282-6283 ext 231 </li></ul>© 2009, Data Interchange Standards Association Thank You !