A $1.2M Theft Demonstrates Another Reason For Managing Print
Last week a Wall Street Journal article described how a low-level receiving clerk at the Memorial Sloan-Kettering Cancer Center managed to steal more than $1M from the hospital by ordering printer toner and then subsequently stealing it and reselling it. While this may sound like an isolated incedent of an employee ‘running wild’, the reality is that the unmanaged nature of printing invites employee theft. Clearly, this is an unusual incident in terms of its size and magnitude, but it does take place on a much smaller scale everyday as employees print personal documents at work or even occasionally take home a toner or ink cartridge.
Since the cost of imaging (printing, copying and faxing) documents is highly decentralized, without some type of managed print services program to centrally monitor asset deployment and usage, the potential for shrinkage is dramatic. Despite the fact that each employee spends up to $750 per year[1] in hard costs for document imaging (these are the tangible, out-of-pocket costs such as toner supplies, maintenance and other items that represent cash outlays). Most firms do not centrally manage or track this valuable corporate asset. In fact, I have yet to see document imaging as a line item on any corporate profit and loss sheet.
Clearly, there are many more benefits to managing the document production environment including savings from increased efficiency, device consolidation, improving document workflows and worker productivity. But managing misuse or outright theft is clearly (as this article indicates) important in what today is a highly-unmanaged, high-risk area.
[1] 2009 Photizo Group study of 105 organizations in North America both pre- and post-the managed print services engagement.
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$1.2 million is a lot, but the WSJ article states it was as much as $3.8 million over the past six years. The $1.2 was just for 10 months between October 2009 and August 2010.
Incredible story Misty, thanks for passing it along. One concern we all should have and continue to foster is that we as MPS Providers have taken on many risks that traditionally shouldered by business owners and corporations, etc.
As your post illustrates, as well as Ed’s comment on the Journal’s website, shrinkage, embezzlement and plain english theft, is a risk we are now dealing with.
We often have clients misplace supply items such as toner cartridges that we have delivered as part of an MPS Agreement. And it is a challenge for us to track this in general, but we also have to illustrate to them that they did not consume yet that supply item. And do it in a friendly manor.
Your post has prompted me to take a closer look at safeguards for our MPS business in this high risk area.
Good comments Joe and Gary. And Joe, you are right, the total lost actually was higher. In any case, this is clearly an area that will both drive growth of MPS, and create an additional concern for MPS providers. Thanks for the feedback.