Industry News

Ricoh Removes Roadblock to Help Insurance Provider Go Digital

Capture1 Document Management Challenges
• High-cost, low-speed analog copier fleet
• 400 printers sitting dormant in warehouse
• Aging fleet of analog equipment and poor service
from current hardware provider

This insurance company employs more than 18,000 people and works with a nationwide network of agents to serve more than 15 million customers. As the largest subsidiary of a multinational insurance powerhouse, it was encouraged to join a global procurement initiative that would consolidate sourcing and share providers to achieve better cost savings. Ricoh was chosen as the single provider.

The insurance company, however, was not eager to upgrade its existing fleet of analog copiers, and wanted instead to extend the current agreement one year. They believed an upgrade would increase their copying costs.Ricoh also discovered that the company had a backlog of printers originally purchased for resale to agents. These AS/400 “designed” laser printers weren’t selling because agents anticipated a move to Webbased printing applications. Plus, the printers had been sitting in the warehouse for almost a year, and they were quickly becoming outdated. To make matters worse, the company’s former document equipment supplier had no interest in relieving it of the backlog.

Accountants assumed the printers would be a significant loss. But they didn’t anticipate the creativity of Ricoh’s commitment to customer satisfaction. When Ricoh sales representatives visited the insurance company to discuss the new procurement strategy, they offered to buy the backlogged printers at cost, so the company would lose no money and be free to work with a new vendor. Next, Ricoh guided the company through a digital transition that ushered in higher productivity and lower document management costs.

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