OFFICE DEPOT

Retail giant leverages HP Managed Print Services to grow large-format business

HP knows how to market to small business and retail customers. HP MPS delivers high-quality printers, streamlined management, predictable payments, usage analytics, and the know-how to help grow our large-format business.
Colleen Fitz-Gerald, senior manager of fleet operations, Office Depot, Boca Raton, Fla.

HP CUSTOMER CASE STUDY: Office Depot chooses HP Managed Print Services to support growth of large-format print business INDUSTRY: Retail

OBJECTIVE: Meet growing retail customer demand for large-format printing APPROACH: Engage HP Managed Print Services (MPS) to assess needs, recommend and deploy solutions, manage supplies, and support marketing initiatives IT IMPROVEMENTS: Network device tracking eliminates guesswork on printer location, usage Ability to generate usage reports supports strategic marketing, profit-margin enhancement Device ease of operation, high quality output satisfies retail customers BUSINESS BENEFITS: Support 30 percent-plus growth of large-format print business Enable stores to focus on sales vs. managing supplies or troubleshooting equipment Consolidated lease payments simplify management, eliminate cost fluctuations

As a leading global provider of office supplies and services, Office Depot keeps a close eye on customer needs and trends. One key trend has been a rise in demand30 percent in the last year alonefor printing of posters, banners and other large-format items. This represents a lucrative and growing market for Office Depot, but the printer it was using throughout North America was problematic. The device, manufactured by an HP competitor, offered no way to track device location and usage, and cumbersome supplies management led individual retailers to stockpile ink, which sometimes expired and had to be thrown out. This created waste and shrinking profits. Additionally, the vendor offerings were limited to products, while HP was offering expertise in marketing and delivery.

Everything changed when Office Depot switched to HP Managed Print Services (MPS). As part of the service, HP provides easy-to-use HP Z2100 Designjet large-format printers at Office Depot stores throughout North America. HP Web Jetadmin software enables device tracking and usage reporting, as well as a constant inventory of fresh ink supplies. Additionally, HP supports Office Depots revenue growth through new marketing strategies and delivery channels. As a result, Office Depot can shift its attention from counting cartridges to courting customers.

Before HP MPS, we couldnt see the printers on our network. Field Associates would put the devices in their cars, take them to other locations, and wed lose sight. HP Web Jetadmin enables us to track all the HP printers live on the network and analyze usage data to refine our business management and marketing strategies.
Colleen Fitz-Gerald, senior manager of fleet operations, Office Depot

OFFICE DEPOT SEEKS BETTER SOLUTION TO MEET GROWING DEMAND Office Depot runs 1,132 retail stores in the United States, employing approximately 40,000 associates in 58 countries. Fitz-Gerald manages fleet operations from the company headquarters in Boca Raton, Fla. and individual merchants manage the products on store shelves, as well as their margins. As a result of the decreasing cost of color printing, demand for large-format color prints is rising among both consumer and small business customers. Consumers typically print posters for personal use, and business customers traditionally print promotional posters, specialevent banners and point-of-sale signage. HP DELIVERS SOLUTIONS, SERVICE AND MARKETING SAVVY For a solution, Office Depot looked at the name prominent on its own store shelves: HP. The company sells a wide range of HP products, Fitz-Gerald says. I know the quality of HP solutions, service and marketing savvy. Having these qualities available in a managed print services model cinched the deal. HP MPS spans the image and printing lifecycle with assessment, procurement, implementation, management and workflow-streamlining services. The goal is to design, deploy and manage a print infrastructure tailored to each customers environment and needs. At Office Depot, replacing the existing printers with the HP Designjet Z2100 largeformat printer eliminated the confusion around paper handling, which in turn eliminated waste of customer and staff time troubleshooting false failures. The HP printer is simple to operate, tells you clearly what to do and aligns the paper automatically, Fitz-Gerald says. Our associates and customers like the photo quality and ease of use. Some Office Depot stores keep the devices behind the counter to be operated by staff only. Others place them in the customer self-service area. In either scenario, reliability, durability and predictability are requirements to satisfy customers and to keep the business running smoothly.

HP MPS takes ink management out of the hands of the stores, so they can focus on selling, says Colleen Fitz-Gerald, Office Depot, senior manager of fleet operations. For me in the central office, consolidating expenses into a fixed monthly feeand having visibility into the fleet nationwidestreamlines management and opens the door to strategic analysis of usage data. From a business point of view, Office Depots partnership with HP increases profit margins and enables new marketing initiatives.

CUSTOMER SOLUTION AT A GLANCE

PRIMARY APPLICATIONS Large-format printing for retail customers PRIMARY HARDWARE HP Designjet Z2100 Photo Printer HP Designjet T2300 eMultifunction Printer PRIMARY SOFTWARE HP Web Jetadmin HP SERVICES HP Managed Print Services Original HP supplies

At corporate headquarters, HP MPS simplifies management of consolidated, fixed monthly payments for supplies and services. Additionally, the intelligence HP Web Jetadmin provides on printer location and usage supports not only supplies management, but also business analytics for refining marketing initiatives. With HP Web Jetadmin, we can track all the printers live on the network by serial number or IP address and see whether or not a unit is up and performing.

INNOVATIVE SERVICES TO MEET GROWING CUSTOMER DEMAND In the Office Depot Online Print Center, customers can order custom documents online for shipment to their home or office, or for pickup at a designated Office Depot store. The in-store pickup services, Fitz-Gerald says, are particularly helpful for business travelers presenting at trade shows and other events. To date, more than 900 HP Designjet Z2100 Photo Printer series large-format printers have been deployed at Office Depot locations across the United States. Theyve also signed another MPS agreement to add 300 HP Designjet T2300 eMultifunction Printers, which can scan, copy and print in both black-and-white and color. Like the HP Designjet Z2100, the T2300 is available in ENERGY STAR-qualified models, a feature that supports Office Depots environmental goals as the first general retailer recognized by the U.S. Environmental Protection Agency (EPA) for lowering energy consumption by more than 20 percent.

HP MPS helps us reach new customers through high-quality products and a team of professionals at our service, who understand how to serve emerging small business and retail needs.
Colleen Fitz-Gerald, senior manager of fleet operations, Office Depot

If theres an issue, we can communicate with the store and have HP get involved before it impacts sales. We can also see how many prints are being generated and what type of activity is going on. Analyzing that data helps us better forecast sales, calculate margins, detect and prevent shrinkage, and identify emerging customer needs.

The HP MPS team has been a tremendous asset, Fitz-Gerald says, for identifying opportunities for Office Depot to meet its business goals. They bring IT knowledge, industry expertise, implementation skills and even expertise on structuring a contract to our best advantage, she says. Ive been very impressed with each member of our HP team. They not only understand HP solutions, they advise us on how to leverage these solutions to enhance our business in the future. In addition to its network of retail stores, Office Depot also operates nine regional production facilities. Fitz-Gerald intends to expand the HP MPS relationship into that arena to handle

high-volume work. I envision making this a solid strategic relationship where HP owns my largeformat business, she says. HP MPS can help us grow and take it to the next level. Then, perhaps every year will be a banner year for Office Depot large-format printing.

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2012 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. The only warranties for HP products and services are set forth in the express warranty statements accompanying such products and services. Nothing herein should be construed as constituting an additional warranty. HP shall not be liable for technical or editorial errors or omissions contained herein. ENERGY STAR is a registered mark owned by the U.S. government. 4AA4-0363ENW, March 2012