The most common method of document storage is to physically file away paper documents. Businesses that need to keep a paper trail for non-mission-critical documents are accustomed to this method.
It is a cheap option, but it has major drawbacks. One of the major issues is the high risk of deterioration of the paper files. As time passes, fungi and rodents could attack the files, destroying them completely. If the storage area is too humid or dry, it could cause the fibers of the paper to deteriorate. It is essential to keep an “hygiene routine” and adhere to a file-organization plan to avoid these risks.
The fact that employees need to work manually with papers and files is a different issue with physical storage. This could lead to 7.5 percent of files being misfiled, and 1/5 of them getting lost. Given that every search and retrieval of a paper-based file can take as long as 25 hours, this could be a huge expense for a company.
It is crucial to store paper archives in a secure location to avoid floods and fires. This is costly and takes up office space that could be used for other purposes. Paper records are not usually stored in a secure way, and they can be lost if there is a catastrophe or theft. By contrast, electronic document management systems are stored in fail-safe archives that cannot be accessed by a burglar or destroyed by a natural disaster.