IKON Rightsizing Initiative

March 24, 2003

UT Austin has entered into an agreement with IKON Office Solutions to provide rightsized, digital multi-function devices (printers, copiers, fax machines, and scanners). Rightsizing means choosing equipment and functions based on actual annual volume and business needs versus choosing a single-function machine based on predetermined monthly volume minimums. Determining a rightsized solution, whether that solution be one machine or 30, requires some up-front analysis that may require a modest amount of staff participation depending on the size of the department.

This agreement was designed to allow departments to pool volume on an annual basis. This will reduce costs because many of our copier agreements are based on a 12,000 monthly copy minimums, even if actual usage is significantly less. Additionally, any month in which the minimum volume is exceeded results in monthly overage charges. By participating in the IKON program, all volume is pooled on an annual basis. If a machine in a department is over its volume target at the end of the year and another machine is under by the same amount, then they offset one another, resulting in no overage charges.

This agreement also includes annual rebates for increased program participation. As more departments join the program and our volume increases, annual rebates will be returned to departmental program participants. This ensures that everyone benefits from leveraging our collective buying power, which provides incentives that cannot be duplicated by the one-off contracts most of us have in place today.

IKON was selected from a five-vendor pilot conducted in the CFO/VP of Financial Affairs organization which resulted in a decrease in annual costs by 40%. IKON's pricing and rebate structure is aggressive. Additionally, IKON has a solid reputation on campus, having done business with UT for more than 15 years.

If you would like an overview of the CFO/VP of Financial Affairs pilot, please contact Floyd Self, Director, Purchasing at 471-6999. If you would like an analysis of your area done to determine if you can save money under this program, please contact Kathy Smith, Major Account Executive, IKON at (512) 385-5100.

Directions on processing a purchase order to IKON