Why Businesses Should Utilize An Electronic Document Management System

In today’s business world, the amount of paper a business manages can be endless. With each piece of paper, someone needs to file it, space must be used to store it, and on multiple occasions, someone needs to retrieve it. When you are talking about thousands and even millions of pages of paper, this can be a very time-consuming task, and therefore a very costly task. The costs mount up quickly, in the areas of wages for employees who are responsible for filing and retrieving documents, and the areas of storage space required to house the massive amounts of paper files.

It is also an on-going, never-ending task, requiring the time of countless employees. This is time that could be better used performing the tasks that they have their personal expertise in. The opportunity costs for using a paper filing system include wasted time, delayed customer response time, and wasted floor and storage space. In other words, the efficiency of a business is very much hampered by continuing to utilize a paper filing system.

The benefits of an Electronic Document Management System (EDMS) are countless. With an EDMS, you will be able to take all of paper files, put them through a scanner, and them throw them away, or if your too skeptical to toss them, you can store them in some off-site storage where you will hopefully never have to look at them again. All of your files will be stored electronically, accessible almost instantly by any computer within your office at anytime. You do not have to worry about misplaced files or somebody else already having a file at their desk.

The initial cost of converting to an EDMS is usually what keeps people from doing it. This cost consists of the time and money it takes to scan all of a company’s existing files into the system. To save time, a company can pay a scanning service bureau to scan all their files for them, and this will sometimes be the cheapest method as opposed to paying an employee, who is likely less efficient, to scan the files. Whatever the method chosen, the first year cost might be heavy, but these costs should be offset within the first couple of years.

Another route that a lot of companies take is not to scan all of their backfiles into the EDMS, but to start scanning files today as they come in, and leaving all previous files as they were. This allows the company to bypass a large part of the initial costs, while still enjoying the benefits of the electronic file storage. As time goes by and the companies appreciation for the system grows, they will slowly convert their older files into electronic images, allowing them spread this cost over many months or even years.

Once a company is completely paperless and utilizing an EDMS, their efficiency is greatly increased, their response time for customer support is drastically reduced, and their overall office clutter is eliminated. These improvements convert directly to more business and higher profits.

If that’s not enough to convince you, then this will. The company is no longer at risk to having their critical business information stolen, lost, or destroyed due to some unforeseen circumstances, such as Hurricane Katrina that destroyed thousands of business’s paper records. The EDMS can backup your files offsite so nothing will ever be lost, plus its security features will prevent unauthorized individuals from accessing the documents that they shouldn’t, a very difficult task with a paper filing system.