The hidden costs of inefficient and unstructured data capture can weigh on an organisation more than most people realise.
“But our checklists only cost 30 cents each to print! How could a digital process possibly be cheaper than that?!”
We’ve heard the above quote so many times when talking to our customers over the years. But how much does that paper based checklist really cost? The answer is that by the time you calculate the true cost of using paper based checklists it can be as high as $50 per sheet of paper.
While many businesses move a lot of their paper based processes to digital solutions, checklists have not migrated as quickly as other processes. Often this is because it is seen as a low cost process and therefore not worthy of the investment required to digitally capture the information. Actual costs are hard to quantify and are often spread over many different departments within an organisation.
However, when we look at the end-to-end cycle of designing, purchasing, delivering, distributing, collecting and storing paper the true costs start to stack up. Each piece of paper can pass through more than 20 touch-points before it is finally sent off site for storage. If it then needs to be retrieved at a later date the costs increase even further.
Once the true cost of your current paper based process can be established justification of the investment required to move to digital becomes much easier. We have seen ongoing savings in the range of 30-60%. For our larger customers this can mean annual savings in excess of $200,000.
Remember when nobody questioned the logic of having paper bank cheques? We do. In 5 years time will we be saying the same thing about paper checklists?