Siemens India, a world-class solution provider in the engineering and manufacturing segment, plays a key role in India's quest for developing modern infrastructure. As a company, Siemens India is committed to drive causes which maximize value and minimize costs. But that's not always easy when the company operates from more than 50 locations and has to assimilate additional people and infrastructure after strategic acquisitions.
Tackling Cost Challenges
Siemens India, which has a business volume of Rs 12,000 crore, was looking at scaling down its overall costs and managing core operations more effectively. Satish Kotgire, head - IT infrastructure, Siemens India, chose to strategically outsource non-core, yet vital areas of the company's IT and business processes.
His team identified the opportunity to lower overhead costs in the company's document and output management processes. "We wanted to centralize our IT spending for printers, copiers, consumables, and production sites with the goal of reducing operational and maintenance costs. This would eventually improve our cost structures related to document output," says Kotgire.
Siemens India is also committed to a multi-faceted environmental sustainability plan consisting of staff education, a reduction of solid waste, and decreased energy consumption and greenhouse gases. Therefore, Kotgire and his team chose to implement a solution that could support the company's environmental sustainability goals.
The task of managing equipment, printing and distribution, billing, reporting and meeting the needs of over 14,000 employees was daunting, and with no central means of managing overall costs. That's why Siemens India chose to partner with Ricoh. "We looked to Ricoh to leverage its expertise, experience and global presence to support us," says Kotgire.
Controlling Output Costs
Kotgire began by establishing a baseline. "The first step was to make a thorough assessment of our office infrastructure. That revealed a surplus of under-utilized devices," says Kotgire.
Kotgire's team and Ricoh found that there was a need to manage nearly 700 devices. "This meant that we had 20 employees, on average, to each device. Approximately 26 percent of these devices were either out-of-date or malfunctioning, and were responsible for excessive print costs," says Kotgire.
His team also discovered that there was a lack of asset management and cost control for printers, supplies, and the management of devices. Complicating the situation was the fact that Siemens India had five or more vendors supplying print/copy services with varying consumables, support and billing. Ricoh recognized an opportunity to optimize, rationalize and provide standard technology platforms to Siemens India's office environment after a thorough study.
Kotgire decided to implement a centralized program to shrink the company's total annual document output costs. A large portion of Siemens India's output fleet was replaced with Ricoh MFDs, a newer, more cost-effective, and more energy-efficient technology approach to document management.
Sign up for CIO Asia eNewsletters.