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Konica Minolta ECM Blog

How Much Does it Really Cost When You Lose a Document?

Posted by Dan Termale on Tue, Nov 26, 2013 @ 01:26 PM

Lost DocumentsI think we can all honestly say that we have at one time or another lost or misplaced a important document or receipt. We search and search , retrace our steps, and hope that it will turn up, but in most cases it doesn’t . Now you just lost a document and have to either re-create it or find another way to get a copy if there is one. How much time have you spent searching for and re-creating those documents? When you think about this on a small scale you may not see how this makes a big impact on a company, but it does. Think about if everyone in your organization does this then that amount of time wasted is huge.

Here are some paper facts on the average organization:
▪ On average, the cost in labor to file one document is $20.
▪ Between 2% and 5% of an organization's files are lost or misfiled on any given day.
▪ Companies on average spend $120 in labor to find one misfiled document.
▪ 1 out of every 20 documents is lost.
▪ Approximately 25 hours are spent recreating each lost document.
▪ Approximately 10-12% of documents are not found on the first attempt.
▪ 400 is the number of hours per year the average employee spends searching for documents.
▪ More than 70% of today's Businesses would fail within 3 weeks if they suffered a catastrophic loss of paper based records due to fire or flood.
▪ It takes an average of 10 minutes per paper document to retrieve, copy, and re-file.
▪ The average document is copied 19 times.
▪ The average worker makes 61 trips to the fax machine, copier and printer.
▪ 60% of employee time is spent working with documents.
▪ 90% of a business's information is in documents
▪ Each four drawer file cabinet holds an average of 10-12,000 documents, takes up 9 square feet of floor space and cost $1500 per year.

-Sources: Gartner Group, AIIM, US Dept of Labor, Imaging Magazine, Coopers & Lybrand

ECMSo what can you do about it? I have some tips for you to consider when you are thinking about creating or extending your Enterprise Content Management (ECM) system and strategies.
Scan it right the first time. Make sure the people scanning your documents put a high emphasis on quality not just speed. If you don’t have the means to do the scanning yourself then consider outsourcing that part of your process to a scanning vendor. Next is to index it right the first time. Know what you need to extract from the documents before you are scanning or importing. Have all of these processes ingrained into your staff's work strategies. The third tip is more of a result of the doing the first two things right, being able to find the document easily. When a document is scanned and indexed right you should be able to pull it up very easily. Have processes in place so that your documents get indexed clearly and with a consistent criteria.

Now you see that losing a document is much greater than the cost of not filling it or capturing the information correctly. It’s a matter of wasted time, money, energy, and the risk of lawsuits. It is extremely important that we protect and manage our documents and information responsibly and efficiently. If you need some guidance and insight on how to improve your processes or how to start new ones, then Contact Us , we would love to help.

Tags: Document Management, document scanning, Paperless Office, Kofax, Kofax Capture, OnBase, ECM, Document Imaging