Managing business records is a critical part of any organisation.
There are many financial and legal requirements that relate to keeping records. You also need to consider the practical aspects of storage space.
Some organisations that use archiving and storage as a way to store old documents. Often with little inclination to retrieve them at a later date.
While off site storage generally costs far less than the lease cost for office space – a concerted approach is still best. Records storage is an often overlooked issue which could cripple your business in the event of a disaster. Storing legal records in a storeroom, cupboard or other location on site does not protect your business against unforeseen events such as fire, flood, damage or theft.
The cost of records management can vary. It depends on the rates you can negotiate and the volume of documents you store. If you need to retrieve documents often you need to consider the right strategy to reduce expense.
Transparency creates accountability
Supply Clusters provides transparent reporting on Records Management through our member portal. Simply sign up to our Standing Offer arrangement and your data will be available 24/7. Members have access to all of their data including detail on every single monthly cost. Join today, start saving on Records Management and see all the detail you need to manage your Records Management needs:
- All monthly charges by type of storage
- Detail by cost centre to understand who is managing records well
Things to know and look out for when choosing a Records Management provider.
Permanent removal charges
One of the most outrageous clauses we see in contracts is the cost called permanent removal. This is a charge for permanently removing your storage boxes from a supplier’s storage. The charges are often many times higher than the cost of storage. While the industry tries to justify these charges as “cost of doing business”, it is a charge with no justifiable commercial basis other than profiteering. In effect it serves to strongly dis-incentivise your business from removing documents permanently from storage. Ensure you choose a supplier who does not charge permanent removal fees or at the least clearly spells out what the charges are for permanent removal.
Retrieval and access
Most organisations store documents and incur charges for infrequent retrieval. Retrieval charges can vary according to how fast you want the item back. It is important to consider any current or intended spend. Then balance what relates to retrieval vs storage and negotiate the right rates.
Retiring or destroying documents
Keep a register of everything that goes into storage. This allows you to remove or destroy them when no longer needed. Each carton incurs a monthly charge for storage. These costs add up fast for cartons that are no longer required.
Consider a digital solution
Storing documents online simply makes more sense than storing paper. You incur minimal costs to store and can access them whenever you need. While this shift can seem daunting, the cost benefit far outweighs the pain. Consider an information management solution as part of your planning. You can choose either a complete changeover or a hybrid approach which combines digital with traditional. More recent documents can be converted online while your older documents (with limited shelf life) are phased out of physical storage.
Better Buying Outcome
Reducing records management expense can be simplified by adopting the following:
- The right behaviours and processes for storing documents.
- Choosing the right provider to manage legacy records stored in boxes.
- Ensuring you are contracting market competitive storage rates including the cost to store and retrieve.
- Engaging a provider who delivers on a strong digital capability to enable the flexibility of both digital and physical storage.
- Appointing a provider who does not employ punitive contract terms such as permanent removal fees.
Supply Clusters Offer
Supply Clusters have partnered with TIMG to help you optimise your records management expense.
Members receive the following benefits from TIMG:
- Pre-negotiated pricing on document storage
- Preferential terms for ongoing pricing management
- No permanent removal fees across all records or documents stored
- Volume rebates (Premium Members) across all spend.