Paper expenses have a staggering impact on your company’s bottom line. For a business with 50 to 100 employees, the annual cost of paper equals the combined salaries of up to two full-time staff members. Imagine what this number will be for local government units who are responsible for entire cities or multinational companies with thousands of clients and employees.

Plus, paper waste from unnecessary printing, outdated documents, and inefficient processes adds up quickly. By pivoting to a digital direction, you can redirect funds toward driving your business or organization forward.

The Real Cost of Paper Records

Maintaining paper records is costly, and several factors drive up these expenses. To put this into perspective, consider the sheer volume of paper office workers handle annually. For instance, take a typical 3-drawer filing cabinet. You know those metallic monstrosities that we always bump against when we turn at the office corner? Most offices have hundreds of those full to the brim with paper. 

A 48-inch 3-drawer metal cabinet can hold 30,000 sheets of paper and weigh hundreds of pounds. This unmovable cabinet can take up the space for at least one office worker. With each passing day, more paper documents are filed, and costs can quickly add up.

Beyond Paper: Additional Expenses

The costs associated with paper extend far beyond the price of the paper itself. Other significant expenses include:

  • Filing and storage: The physical space required to store paper documents.
  • Copying and mailing: The costs of reproducing and distributing documents.
  • Security and shredding: Services needed to manage sensitive documents securely.
  • Maintenance and repairs: Keeping printers and copiers in working order.

Additionally, consider the time and space involved. Despite the trend toward digital, it is common to see companies allocate 25% to 50% of their total space for document storage. Much of this space is occupied by duplicate documents, many of which are never accessed or seen again. This represents a considerable waste of resources.

Estimating Your Paper Costs

Let’s break down the costs:

  • Paper: The usual cost of A4 paper is Php 300 per 500 sheets. Assuming each employee uses 500 sheets per month. If you have 100 employees, that’s 100 x Php 300. Your company is spending around Php 30,000 per month on paper alone.
  • Storage Costs: The average rent in central business areas in the Philippines ranges from around Php 800 to Php 1,500 per square meter per month. Assuming 1 steel filing cabinet can occupy around 2 square meters of space, that’s Php 1,600 to Php 3,000 office rent for 1 steel cabinet. If you have 100 of these cabinets, that’s Php 160,00 to Php 300,000 of rent.
  • Labor: Employees spend around hours looking for a lost file. That’s hours of unproductive time. Assuming every employee spends about 2 hours per week on document filing, finding, and reprinting. That’s 8 hours per month or at least 1 whole workday wasted.

These calculations likely reveal a substantial expense. Moreover, this doesn’t even account for the inefficiency costs. For instance, if important safety documents are not readily available, employees might proceed without them, risking injuries and non-compliance with safety regulations.

Moving Towards a Paperless Solution

To break the costly cycle of paper dependency, consider implementing a comprehensive Document Management System (DMS) for your safety records and other important documents.

A Document Management System (DMS) is a crucial tool for any organization, offering a multitude of benefits that transform the way businesses operate. By implementing a DMS, companies can significantly reduce costs associated with paper-based document management, such as storage, printing, and retrieval. This cost-cutting measure can then be redirected towards more strategic initiatives.

A DMS streamlines workflows, making it easier to search, access, and share documents, thereby enhancing efficiency and productivity. Employees can quickly locate and access documents from anywhere, at any time. Eliminating the need for manual searches through dusty archives.

Additionally, a DMS makes it easier to comply with regulatory requirements, such as GDPR and HIPAA, by providing a secure and transparent document management process.

By leveraging our DMS, organizations can create a more productive, secure, and accessible work environment that supports their employees’ needs and drives business growth.

For demo and more information about our DMS, feel free send an email to sales@1wan.ph.