CASE STUDY: TRANSPORTATION INDUSTRY COMPANY

Project Overview

This major transportation company sought a global assessment of its printing costs, capacity, and fleet utilization to identify opportunities for efficiency and cost savings. The initial scope focused on capturing a complete picture of print activities across multiple countries and ensuring all contract evaluations and device placements aligned with the company’s operational needs.

Contract Length: 30 months
Annual Revenue: USD 15.8 billion
Employee Base: 60,400 employees
Geographic Presence: Offices in 25 countries
Fleet Size: Approximately 1,600-2,000 devices
Site Locations: 7 locations across 5 countries

Fleet Composition:

• Printers (EP)
• Multifunction Devices (Copiers)
• Scanners
• Wide Format Printers

Main Suppliers: Canon, Xerox, Hewlett-Packard

Initial Scope of Work

The initial project scope included:

• Detailed analysis of print volume, costs, and cost per page across all sites
• Evaluation of fleet usage, device service levels, and security
• Environmental impact assessment, including paper consumption and duplex usage
• Full contract evaluation across the global fleet
• Floor mapping for buildings housing more than 50 devices

Expanded Scope

Following our initial analysis and reporting, the company extended our scope to include:

• Contract Negotiations: Renegotiated existing contracts to lower costs ahead of renewals.
• Fleet Optimization and Downsizing: Recommended and implemented fleet reductions without affecting operational efficiency.
• Cost Reduction Initiatives: Advised on global cost-saving measures, including mandatory duplex printing across all departments.
• RFI and RFP Leadership: Managed the RFI production, supplier meetings, and RFP process for fleet renewal.
• Standardization of Contracts: Assisted in adopting a standardized contract model, with Xerox selected for North America under a cost-per-page agreement.
• Governance and SLAs: Developed a governance model with KPIs and SLAs, in collaboration with management, to monitor ongoing fleet performance and cost-effectiveness.

Key Achievements

• Substantial Cost Savings: Secured multi-million-dollar net savings annually through strategic contract renewals.
• Immediate Cash Flow Improvements: Achieved USD 1.2 million in cash flow reductions within the first six months by renegotiating supplier contracts and standardizing print regulations globally, resulting in monthly savings of USD 200,000.
• Fleet Reduction: Optimized the fleet size by 40% while maintaining device availability and performance.

This case demonstrates how a strategic, data-driven approach to fleet management and contract negotiation can yield significant financial benefits and operational improvements across complex, multi-site organizations.