November 30, 2016
Topic: Campus News
Xerox is the University of Michigan's new supplier for multi-function devices, which offer several imaging functions, including copying, printing, faxing, and scanning.
There are approximately 2,000 such devices in use across the Ann Arbor, Flint, and Dearborn campuses as well as the U-M Health System.
The contract with Xerox is expected to save the university more than $15 million over the six-year arrangement. The move to Xerox multi-function devices — also known as MFDs — won't occur all at once, but rather will be done in a phased, methodical approach, beginning in February.
"MFDs from Konica Minolta, the university's former supplier for these devices, with expired leases will be replaced first. Based on lease obligations with Konica Minolta, it's estimated it will take about four years to complete the transition," said Marcelo Valdivieso, the university's director of procurement services. Valdivieso also noted that Konica Minolta participated in the bid process.
In addition to significant cost savings, the contract with Xerox offers a number of other benefits to the university such as an onsite showroom and expanded service hours.
Xerox was chosen as the university's MFD supplier by a cross-functional team that included representation from the Athletic Department, UMHS, Information and Technology Services, LSA, the Stephen M. Ross School of Business, Student Life, and UM-Dearborn.
"The cross-functional team worked collaboratively to carefully review and analyze proposals from over 10 MFD suppliers, attend several presentations, and actually test the capabilities of several potential MFDs. At the conclusion of our analysis, we collectively agreed that Xerox was the best supplier for the university for a variety of reasons, ranging from cost savings to customer service," said Nancy Otis Schuon, financial manager at the Ross School, who was a member of the team.
Valdivieso emphasized there will be a strong focus on ensuring the transition from Konica Minolta to Xerox is seamless for units.
"Our primary goal is to actively partner with units — especially those employees who actually maintain the MFDs — to ensure all of their MFD-related needs are met as we change out the devices. We'll be working closely with both suppliers to accomplish that goal," said Valdivieso, adding that U-M has a dedicated Xerox team to help with the effort and with ongoing customer service.
"Another significant feature of the new contract with Xerox is that leases have been eliminated. This allows units — at any time — to return MFDs or select a different model if their needs change. In addition, the Xerox contract offers a more economical per-copy charge for both color as well as black and white images and eliminates the requirement for a minimum number of images each month," Valdivieso said.
It's expected that the onsite showroom for Xerox MFDs will be well received by the university community.
"The location is still being finalized, but it will enable Xerox representatives to interact directly with customers, hear firsthand about their imaging needs, and help them select the best MFD to meet those needs. Our employees will be able to see a variety of MFDs in action and discuss their capabilities with the Xerox team," Valdivieso said.
Xerox has a significant presence in higher education and counts the University of Florida, Purdue University, University of Southern California, Wayne State University and University of California, Los Angeles among its clients.
"We're looking forward to partnering with the diverse group of customers across the University of Michigan to understand their business needs, provide cost-effective imaging solutions, and continually deliver exemplary customer service," said Cees Van Doorn, Xerox senior vice president, health care and higher education.
The agreement with Xerox is the latest contract signed under the university's strategic sourcing initiative, which is a systematic approach for consolidating the institution's spending with select, high-quality suppliers to maximize pricing discounts. The strategic sourcing program has saved the university nearly $80 million since 2013.