Retail Printing: 2-Sided vs. 1-Sided Receipts

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1 Retail Printing: 2-Sided vs. 1-Sided Receipts Contents 1 Setting the record straight 2 Key findings 2 Environmental impact 4 Customer wait time 4 Costs 7 Conclusion 7 Author Setting the record straight When IBM began defining the SureMark CR printer, now installed in retail stores throughout the world, we evaluated whether 2-sided receipt printing was a technology that could benefit our customers. Our extensive total cost of ownership (TCO) analysis showed that 2-sided thermal printing delivers neither the cost savings nor the environmental advantage promoted by others. Interestingly, real-world testing of 2-sided vs. 1-sided printers, recently completed by a major US retailer, confirmed the results of our analysis. In fact, more weaknesses inherent in 2-sided printing technology were uncovered. There are no point of sale (POS) printer manufacturers (with one exception) nor paper suppliers, nor retailers who have confirmed that 2-sided printing lives up to all its claims. Even though 2-sided printing can shorten receipts, it can yield a much higher TCO to the retailer, a longer transaction for the customer and, contrary to marketing claims, 2-sided receipt paper has a higher impact on the environment when compared with 1-sided thermal printing and associated paper.

2 All numeric results shown in this paper are from the IBM TCO analysis, which includes printer operating costs and does not include printer purchase costs. Power consumption for 2-sided and 1-sided printers is considered equal. Each printer is assumed to process 120 receipts per day. Performance data used in the TCO analysis were taken from the real-world test results referenced above. Definition of terms: Short receipts are defined as 15 items per receipt, without coupons, totaling 7 inches in length Long receipts are defined as 111 items per receipt, with a 5-inch coupon, totaling 24 inches in length All receipt lengths and print speeds are in terms of 1-sided receipts Lifetime of POS printers is assumed to be seven years The commonly referred to 1-sided printer is the IBM SureMark Model CR Environmental impact: The paper length savings of 2-sided printers vs. 1-sided printers can reduce the energy needed to transport the receipt media by roughly 22 percent. However, the extra thickness of the 2-sided media and the second thermal coating make it heavier per linear foot, requiring as much as 26 percent more energy to manufacture. Because manufacturing the media is more energy intensive than transporting it, by a factor of seven, it can require a net 30 percent more energy to manufacture and transport 2-sided printer media. Example: The additional energy required to manufacture and transport media for 1,000 2-sided printers (printing long receipts for a single year) vs. 1-sided printers, would power 13 average US passenger vehicles for a one-year period. This represents an 18 percent increase in energy requirements over 1-sided media. This calculation is based on the US Environmental Protection Agency (EPA) annual average fuel consumption data for passenger vehicles in the US 581 gallons are consumed, 12,500 miles are driven and fuel economy is 21.5 miles per gallon. Key findings of the 2-sided receipt printing analysis: 2-sided vs. 1-sided printer paper savings (%) vs. receipt length Paper savings vs. 1-sided Receipt length (inches) Figure 1 2

3 Comparing the SureMark model CR to 2-sided printers, IBM s commitment to environmental stewardship is evident through several industry-leading features; Use of recycled materials in product manufacturing and in packaging: Iron gray covers contain up to 25 percent post-industrial recycled material. Corrugated cardboard shipping containers are made from 35 percent post-consumer recycled material and shipping cushions are made from 100 percent postconsumer recycled material. All packaging materials are recyclable. Support for more sustainable 1-sided receipt media. Design for upgradeability, ease of service, reliability, and end-of-life recycling: Upgradeable interface adapters and covers enable easy just-in-time product re-configuration. Light-Path management LEDs show which part has failed. Customer-replaceable thermal print head and cards reduce service calls. SureMark printers are designed to be demanufactured at the end-of-life, enabling the reuse of key components as spare parts. Light-Path Management LEDs Customer replaceable units (CRUs): Interface card, main card, thermal printhead (left to right) Sustainable shipping container and cushions 3

4 Although 2-sided printing shortens some receipts, it can yield a much higher TCO to the retailer, longer transaction time and higher impact on the environment when compared with single-sided thermal printing. Longer Customer wait times for receipt printing: The SureMark model CR has a maximum burst print speed of 10 inches per second. The typical 2-sided printer has a maximum burst print speed of 3.25 inches per second, per side of paper, yielding a total print speed of 6.5 inches per second.* Also, 2-sided printers require complex printer logic to divide the printing between the two sides of paper and this latency can produce significant delays before printing actually occurs. For longer receipts, this latency has been measured by IBM to be 0.8 seconds and higher. By comparison, a 1-sided printer has a print latency measured at a relatively constant 0.17 seconds. When the lower print speed and latency is totaled over the product life of a printer, the loss of employee productivity and customer satisfaction could bear a cost to the retailer. Example: For each 2-sided printer, the increased transaction time resulting from both higher latency and lower print speed can cost an additional $2142 (for long receipts) and an additional $768 (for short receipts) over seven years. * The measured real-world print speed of the IBM SureMark model CR can be as much as 33 percent faster than available 2-sided printers when printing longer receipts. Higher paper costs: A review of paper roll pricing shows that 2-sided paper sells for approximately 2.5 times the price of 1-sided media (per linear foot). This higher cost can be attributed in part to the thickness of today s 2-sided media (2.2 mils) versus the typical 1-sided media (2.0 mils). Also, two passes through a coating machine are required to apply the thermal coating to the second side. Paper savings from 2-sided printers is 38 percent with short receipts (7 inches) and 44 percent with longer receipts (24 inches). So the cost for 2-sided receipt media can be up to 48 percent higher (net maximum) than for 1-sided receipts. Factored over the product life of a printer (approximately 7 years) and multiplied by the number of printers in a retail business, the extra paper costs are considerable. Example: A 2-sided printer, producing short receipts, might use 38 percent less paper; yet it could have supply costs per printer, over the seven-year product life, of an additional $274 a 48 percent increase over 1-sided media. Example: A 2-sided printer, producing long receipts, might use 44 percent less paper (the maximum attainable) yet the supply costs, over the seven-year product life, could be an additional $692 a 35 percent increase over 1-sided receipt printers. Increased labor expenses from paper roll changing: The thickness of 2-sided receipt media reduces the amount of media on each roll, offsetting the expected benefit of fewer roll changes. Because the IBM Model 2CR printer supports large 4-inch rolls (4 in. vs. typical 3.1 in. diameter), the 2-sided rolls (3.1 in diameter) must be changed at a minimum 15 percent more frequently (printing longer receipts) and at a maximum 26 percent more frequently (printing shorter receipts), resulting in added labor costs. 4

5 Example: For each printer, the additional cost of labor to change 2-sided paper rolls vs. 1-sided paper rolls (over the seven-year product life) could be a minimum of $30 and a maximum of $60 (for short and long receipts, respectively). Note: Many advertisers give 1-sided receipt paper to retailers free of charge to pre-print coupons on the reverse side of the receipts. For these retailers, buying 2-sided paper could be difficult to justify. Higher costs to maintain: Not only is the cost of manufacturing 2-sided receipt media high, the complex 2-sided printer is costly to maintain. It requires two thermal print heads, instead of one. Plus, the supporting electronics and mechanism are typically among the highest failure rate items in many receipt printers. By contrast, the IBM SureMark model CR printer not only has fewer points of potential failure, it offers many new features that help to reduce service and maintenance costs, including: A single, customer-replaceable thermal print head Customer-replaceable cards for easy maintenance and less downtime 13 Health Check sensors for local and remote diagnostics Integration with RMA (Remote Management Agent) for wear-leveling, asset management, firmware updates, and remote diagnostics Higher check-processing costs: Extensive testing has shown that one available 2-sided printer reads checks with MICR failure-to-read and re-read rates that can be higher than the IBM SureMark CR printer. Furthermore, the IBM printer processes electronic checks faster and more accurately than currently available 2-sided printers. 4" receipt paper roll replaces 3" paper roll for fewer changes, less downtime Example: Assuming only paper checks are processed, the higher fail-to-read and re-read rates of one available 2-sided printer could add $158 (27 percent higher) to processing costs per printer over seven years. 5

6 Higher costs to track assets and manage wear leveling: Currently available 2-sided printers do not support automated wear leveling (swapping low and high-usage printers in order to extend the life of a group of printers) and remote asset tracking. The IBM SureMark model CR has extensive systems management capabilities. Asset information, usage statistics, and error conditions can be accessed remotely, making it possible to manage thousands of printers from a central location. Example: The increased cost of asset tracking and management of 2-sided printers over the IBM SureMark model CR could be as much as $187 per printer over a seven year product life. Lifetime TCO including Paper check processing IBM 4610 (2.0mil paper media on 4in rolls - Models 2NR 2CR) 2-sided Direct Thermal (2.2mil paper) Long receipts (24 in.) IBM 4610 (2.0mil paper media on 4in rolls - Models 2NR 2CR) Short receipts (7 in.) 2-sided Direct Thermal (2.2mil paper) Life Time Paper used - (miles) Life Time Paper Cost - ($) Paper check processing Printer Maintenance - ($) Labor Cost - ($) Receipt transaction time - ($) Systems Management - asset & wear tracking plus wear leveling Operational Cost ($) Total Cost ratio Lifetime Environmental Impact Total Tons of CO2 emissions from production & Transportation of receipt Long receipts (24 in.) Short receipts (7 in.) paper Total CO2 emmissions ratio Figure 2 6

7 Conclusion Although 2-sided printing shortens some receipts, it can yield a much higher TCO to the retailer, longer transaction time and higher impact on the environment when compared with single-sided thermal printing. Higher TCO than 1-sided printing for both short and long receipts, including: 51 percent higher TCO printing long receipts ($3407 increase per printer over a seven-year period) 57 percent higher TCO printing short receipts ($1585 increase per printer over a seven-year period) Longer transaction time for customers as much as 33 percent longer to print receipts Greater impact on the environment due to more energy to produce 2-sided media, and less-sustainable product packaging About the author Dave Stanhope Dave Stanhope is Offering Marketing Manager with IBM responsible for retail printer products. Throughout his 29-year career with IBM, Dave has worked in various roles devoted to printer development and marketing, including mechanical engineering and product management. 7

8 For more information To learn more about IBM SureMark printers, please contact your IBM representative or IBM Business Partner, or visit: ibm.com/products/retail Additionally, financing solutions from IBM Global Financing can enable effective cash management, protection from technology obsolescence, improved total cost of ownership and return on investment. Also, our Global Asset Recovery Services help address environmental concerns with new, more energy-efficient solutions. For more information on IBM Global Financing, visit: ibm.com/financing Copyright IBM Corporation 2010 P.O. Box Cornwallis Road Research Triangle Park, NC U.S.A Produced in the United States of America October 2010 All Rights Reserved IBM, the IBM logo, ibm.com and SureMark are trademarks of International Business Machines Corporation in the United States, other countries or both. If these and other IBM trademarked terms are marked on their first occurrence in this information with a trademark symbol ( or ), these symbols indicate U.S. registered or common law trademarks owned by IBM at the time this information was published. Such trademarks may also be registered or common law trademarks in other countries. A current list of IBM trademarks is available on the web at Copyright and trademark information at ibm.com/legal/copytrade.shtml Other company, product or service names may be trademarks or service marks of others. Please Recycle RTW12523-USEN-00