Upcoming Groundbreaking Solution Provided by Photizo and PrintFleet
In late 2015, Photizo Group and PrintFleet partnered to create a solution that would dramatically improve profitability for dealers and service providers delivering managed print. Both firms have extensive experience in the industry and identified a unique opportunity to leverage this experience with ground breaking technology to solve problems that have plagued the industry for years. The shift from a transactional model to a managed services model brought with it multiple opportunities as well as new challenges. As with any business, the goal is to retain customers and drive increased profitability. The two factors that have the most impact on a managed print business is service labor and supplies.
Now there has been a little-known secret regarding supplies for years in our industry. In many cases, end users like to change out printer cartridges before they are completely empty. Why do they do this? They do it because the device says that it is low on toner, and the natural human behavior is to make the warning notice go away. In a transactional model, this means the dealer would just sell more toner, which was great. However, in a managed print environment, this becomes additional cost. Supplies is one of the largest costs in a managed print contract, other than labor. If these cartridges are not achieving their full yield spec, then the dealer or service provider can find themselves losing profitability.
This problem is compounded when auto toner fulfillment programs utilize these low toner warnings as a signal to ship toner to customers. There could be 20-40% toner remaining, and the customer may not need a new toner cartridge for months depending on their printing behavior. However, how do you ship cartridges in a dynamic fashion that takes print behavior into account? This is where predictive analytics comes to play. Using PrintFleet’s industry leading data collection tools, this data is fed into a predictive model that predicts when a cartridge will run empty, based on the usage history of the device. What makes it unique, is that it doesn’t use a simple linear regression model, which is the industry standard today. This model looks at the usage and takes into account seasonality. For instance, a linear regression model would not take into account a school closing for summer, which would result in drastically lower print activity.Photizo’s new model does. This is the first time predictive analytics will be used to create competitive advantage, and the solution will be coming out in 2017 under the moniker Supplies IQ. We’re excited about this solution, and we’re looking forward to tackling other problems facing our industry in the near future. Stay tuned.
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