Hartleys deal coup for Imagesource

STOCKBROKING firm Hartleys has signed a facilities management contract with Imagesource for its internal copying and printing needs throughout Australia.

The deal with the Perth facility manager is expected to achieve Hartleys savings of around 20 per cent on its estimated $1 million-plus annual internal copying and printing bill, including capital costs.

It has taken Imagesource 12 months to get to this point after being called in by business analysts, Net Profit Australia director Kimon Anderson and Kerry Shanahan, to see what cost cutting measures could be achieved.

Mr Anderson and Imagesource director Shane Little have been working alongside Hartleys chief financial officer Terry Power interviewing staff, conducting time and motion studies and counting the volume of paper and copying being done in Hartleys’ Australian offices. The company supplies all the equipment, paper and ink required for printing in-house.

Mr Power was unwilling to comment on the deal until all aspects had been finalised, however Mr Little said it was a major coup for the company as it expanded the reprographics firm to the eastern seaboard.

Imagesource’s services are already being utilised to varying degrees by Mirvac Fini, Hatch and GRD Kirfield Limited, as businesses seek to maximise margins through cost cutting.

Beginning operations just two years ago with four staff and a first-year turnover of $1 million, Imagesource now employs more than 50 staff. It has turnover of almost $6 million a year, which the company is forecasting will continue growing at 20 per cent a year, based on current outsourcing trends.

Mirvac Fini accountant Rob Pedulla said using Imagesource had achieved his company savings of around $11,000 in the past 10 months, representing cost cutting of around 5 per cent.

“We definitely have savings, there is no doubt about it,” Mr Pedulla said.

“It has made a difference to our bottom line and without any capital outlay. As technology changes so quickly we are able to change it and we are not locked into technology.

“We can work out what we are pumping out and how many cents it costs per paper.”

Mr Anderson said that while Net Profit Australia looked at all areas of a business’s overheads to see where costs could be sliced, normally it was the reprographics area that offered greatest potential to save.

“What our job is to do is go in and show them (the business) machine by machine, equipment by equipment, fax by fax, printer by printer, copier by copier, how much per impression it is costing them to spit that piece of paper out of that machine,” Mr Anderson said.

“We show them alternatives to doing that.

“Then we have to consider the staff culture. It’s not just pure economic factors.

“It really is an unknown from the company’s perspective. It actually improves their business.

“At the end of the day we save them a lot of money but we also drastically improve their business … how they go about things.”

While Net Profit Australia is willing to tackle any area of a business’s cost structure, the unknown costs of copying and printing are where the real savings can be achieved.

“We are business analysts. We do other things, but this is the cornerstone of our business,” Mr Anderson said.

“We look at all printing and utilities. We look at freight and couriers, we look at all the general consumer items that a company uses on a day-to-day basis; stationary spending and everything to do with that.

“Sure we can do it [other outsourcing], but in terms of

reward for effort there is just too much competition in those areas.

“There are already a lot of suppliers in those areas that can do it. It’s like anything, if there are too many in it then the margins are slim.

“You look at stationary. There are just so many suppliers it is just very difficult because the margins are just not there.

“We then go out and source the best person for the job, because at the end of the day we have to give the client the best service. And at the end of the day we only get paid if the client gets good results, so we are fairly motivated.”

Imagesource and Net Profit Australia normally need to meet certain targets in order to get paid.

“We might get paid up front like a traditional consultant, or we might negotiate fee for service on a contingency basis,” Mr Anderson said. “We have to meet parameters on a pre-set goal basis and if we reach them then we get paid. If we don’t reach them then it is our fault because we haven’t implemented a solution that works.

“We may extend to other areas such as logistics but that is up to Hartleys.”

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