Your organization has any number of departments who have to deal with documents. Accounts payable, accounts receivable, and human resources, for instance, depend on documents and are common starting places for an electronic document management initiative. But shipping departments, order entry departments, and others end up involved in the document process as well.
Take a look at accounts payable. AP employees spend time working with invoices—receiving, routing, approving, and paying them, namely. Invoices are at the heart of their work, but time-consuming manual tasks don’t have to be.
Here’s how to calculate the departmental cost for AP employees:
hours spent each day x employee hourly rate = daily savings
daily savings x 22 average monthly workdays = monthly savings
monthly savings x 12 months = yearly savings
An average AP employee might make $25/hour and spend an average of 5 hours each day on:
- Printing emailed and faxed invoices
- Making copies of invoices
- Delivering invoices
- Processing invoices without POs
- Searching for corresponding documents
- Retrieving and researching invoices
That winds up costing your organization:
5 x $25 = $125 daily savings
$125 x 22 = $2,750 weekly savings
$2,750 x 12 = $33,000 yearly savings
And that’s just for one AP employee. Say you have 5 AP employees who dedicate similar amounts of time to AP tasks. Then, your yearly savings is $165,000. That’s a lot of time and money spent on tasks that could take place in far fewer hours.
Automating certain processes and digitizing documents can take care of those inefficiencies—and remove the need for manual tasks. Plus, electronic document management sets departments up for faster and easier processes both now and in the future!