WPA Network Integration Solutions

Fax Administrator
Return on Investment Analysis

In today's law firms, facsimile has become the major method of communicating with clients. With approximately 85% of the work product delivered in this manner, a typical 250 person office transmits upwards of 1 million pages per year.

Industry studies have shown that the typical process of preparing and sending a facsimile involves at least twelve minutes per fax while network facsimile reduces this time to two minutes (or a savings of ten minutes per fax).

For the following analysis we assume each fax averages five pages resulting in a minimum annual volume of 200,000 faxes. We also assume an average per sender overhead cost to the firm of only $16 per hour.

Labor Cost Analysis for 1 Year of Manual Faxing:

Hourly Overhead Cost $ 16.00

Multiplied by Fax Time of 12 Minutes per Document Faxed
(12 minutes equals 20% of one hour) x 20%

Resulting "Per Manual Fax" Cost = $ 3.20

Minimum Annual Fax Volume x 200,000

Annual Overhead Cost for Manual Faxing = $ 640,000

Labor Cost Analysis for 1 Year of Network Faxing:

Hourly Overhead Cost $ 16.00

Multiplied by Fax Time of 2 Minutes per Document Faxed
(1 minutes equals 3.33% of one hour) x 3.33%

Resulting "Per Network Fax" Cost = $ .53

Minimum Annual Fax Volume x 200,000

Annual Overhead Cost for Network Faxing = $ 106,000

Annual Labor Savings

=

$ 534,000

These savings grow more dramatically when we examine the many other hidden costs of law firm facsimile transmissions and other significant Fax Administrator benefits not factored into the above calculation:

Attorney time involved with facsimile processes obviously exceeds $16 per hour.

Attorneys very rarely send their own faxes in the process of manual faxing. This changes dramatically once Fax Administrator is added as a desktop resource.

For many attorneys, the the ability to easily send faxes after hours or via network dial-in resources are enough to justify acquisition.

Elimination of secretaries leaving their work area to deliver/send faxes or obtain attorney signatures on faxes.

Reduction of messengers, runners and fax room staff time/expense associated with manual fax processing.

Reduction of overtime associated with the typical end of day fax rush and backup at the manual fax machines.

Reduction of delays related to the handling of busy signals (average 25% of all faxes) and communication faults (average 15% of all faxes) associated with manual fax transmissions.

Lower telephone costs via delayed transmission of international faxes that are now typically being transmitted during prime phone cost hours even though recipients are unavailable to receive.

Elimination of the "Back-Office" fax cost recovery/accounting overhead.

Client cost reductions via the elimination of the typical postage/expedite charges related to delivering good quality documents generally required after sending a fax via manual fax machines.

Reduction of the many costs/tasks typically associated with regularly transmitting faxes to a standardized list of recipients.

Reduction of the costs associated with paper/letterheads and repairs on printers and manual fax machines.

Improved fax quality and timeliness of delivery are significant sources of cost reduction for the firm and its clients.

Improved and more timely delivery of in-bound faxes to the recipient.

Are These Savings & Benefits Realistic?

Most certainly, if you can accomplish the transmission of all of your faxes via network facsimile! A more realistic expectation would be to establish a goal of automating 50% (or higher) of your annual volume.

To do this, you must have a solution that maintains the key fundamental characteristics of: 1) Bullet-proof performance that is so intuitive and simple that users will want to use this new alternative to the now tedious job of manual faxing, and 2) Legal specific features that address all law firm requirements better than manual faxing procedures allow.

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Hourly Overhead Cost		$ 16.00
Multiplied by Fax Time of 12 Minutes per Document Faxed (12 minutes equals 20% of one hour)	x	20%
Resulting "Per Manual Fax" Cost	=	$ 3.20
Minimum Annual Fax Volume	x	200,000
*Annual Overhead Cost for Manual Faxing*	=	*$ 640,000*

Hourly Overhead Cost		$ 16.00
Multiplied by Fax Time of 2 Minutes per Document Faxed (1 minutes equals 3.33% of one hour)	x	3.33%
Resulting "Per Network Fax" Cost	=	$ .53
Minimum Annual Fax Volume	x	200,000
*Annual Overhead Cost for Network Faxing*	=	*$ 106,000*
*Annual Labor Savings*	=	*$ 534,000*

	Attorney time involved with facsimile processes obviously exceeds $16 per hour.
	Attorneys very rarely send their own faxes in the process of manual faxing. This changes dramatically once Fax Administrator is added as a desktop resource.
	For many attorneys, the the ability to easily send faxes after hours or via network dial-in resources are enough to justify acquisition.
	Elimination of secretaries leaving their work area to deliver/send faxes or obtain attorney signatures on faxes.
	Reduction of messengers, runners and fax room staff time/expense associated with manual fax processing.
	Reduction of overtime associated with the typical end of day fax rush and backup at the manual fax machines.
	Reduction of delays related to the handling of busy signals (average 25% of all faxes) and communication faults (average 15% of all faxes) associated with manual fax transmissions.
	Lower telephone costs via delayed transmission of international faxes that are now typically being transmitted during prime phone cost hours even though recipients are unavailable to receive.
	Elimination of the "Back-Office" fax cost recovery/accounting overhead.
	Client cost reductions via the elimination of the typical postage/expedite charges related to delivering good quality documents generally required after sending a fax via manual fax machines.
	Reduction of the many costs/tasks typically associated with regularly transmitting faxes to a standardized list of recipients.
	Reduction of the costs associated with paper/letterheads and repairs on printers and manual fax machines.
	Improved fax quality and timeliness of delivery are significant sources of cost reduction for the firm and its clients.
	Improved and more timely delivery of in-bound faxes to the recipient.

Fax Administrator Return on Investment Analysis

Labor Cost Analysis for 1 Year of Manual Faxing:

Labor Cost Analysis for 1 Year of Network Faxing:

Are These Savings & Benefits Realistic?

Fax Administrator
Return on Investment Analysis