Facilities Management Cost Reduction Strategy
Facilities management cost reduction is a crucial yet complex aspect of business operations. It can be difficult to determine how to best allocate your money for maximum cost savings without compromising quality or comfort. As such, it pays to have a solid plan in place for effective management. Here’s what to know about facilities management (FM) cost reduction and why you should look for ways to save.
Why Have a Strategy?
It’s no secret that facilities are expensive to build. In many cases, they’re even more expensive to operate, especially as time goes on. When you factor in repairs, heating and cooling, storage, and regular maintenance, it’s easy to see how the costs can add up. However, by strategizing effectively, you can reduce (if not completely eliminate) many of the costs associated with running a facility. You can also achieve the following:
Automation of Time-Consuming Tasks
Day-to-day operational tasks are costly in terms of both time and money. For example, you must pay workers regularly to restock inventory and complete required documentation. You can reduce overall spending and get things done faster by automating these tasks with specialized software. You can automate data entry to achieve more efficient results, among other things, which is why including automation in your FM strategy can result in significant savings.
One of the best ways to cut FM-associated costs is by lowering your energy consumption. Climate-conscious organizations may put a particular emphasis on reducing their carbon footprint. Your strategy might, for instance, limit the extent to which facilities are heated in the winter. You can also switch out current lighting fixtures for energy-efficient lightbulbs. There are many ways to reduce FM costs through these kinds of measures, and it’s a good idea to consider energy consumption when devising your strategy.
Better Maintenance Planning
Maintenance can be challenging under the best circumstances, but it’s especially difficult when your financial resources are already stretched thin. This is why it may be prudent to consider maintenance planning as part of your FM cost reduction strategy. Rather than waiting until you experience equipment failure to take action, you can determine how to conduct preventive maintenance. This can end up saving your business a significant amount of money over time.
Increased Employee Satisfaction
Perhaps most importantly, having an FM cost reduction strategy can enable you to make smarter decisions about running your business, resulting in happier, more productive employees. Nobody wants to work in an uncomfortable, ill-managed space, so it’s important to find ways to run your facilities effectively while cutting costs. This can also improve your workflow.
How to Choose the Right Strategy For Your Business
No two businesses are exactly alike, which is why you should consider your unique needs when planning your FM strategy. Your needs may differ drastically from those of another organization, so while you can look to other strategies for inspiration, you will ultimately need to base decisions on your individual business. Here are some things to consider when developing your strategy:
- Budget: How much can you afford to spend on FM? What are your anticipated cost savings as a result of re-strategizing? Planning your finances is the first step in developing a good FM strategy.
- Sacrifices: What, if anything, will your facility sacrifice in order to cut costs? Can you afford these losses, or will they end up costing you even more in the long run?
- Staffing: Some cost savings strategies, especially those involving automation, reduce human labor. How will your strategy impact employees?
- Time: While FM cost-reduction strategies are designed to save businesses money, the implementation process can be time-consuming, so it’s important to consider whether or not the time it takes to train employees on new operations is worth it.
There are many things to think about when deciding on an FM strategy. Be sure to consult with leaders and other stakeholders within your organization for a better understanding of how certain changes will impact your wider business operations. By getting everyone on the same page, you can achieve better alignment across your organization and work towards greater cost savings.
Getting Started With Your Strategy
Finding the right FM cost reduction strategy for your business can be difficult. Effective facility management is crucial to the success of your organization, but finding the right tools and solutions for cost-effective management is easier said than done. SimpleFM offers facility maintenance software for diverse industries, including food service and warehousing. SimpleFM is true to its name — simplifying the facility management process and helping businesses develop more efficient cost and time savings strategies. Get in touch with us today to learn more about our facility maintenance and management software and how we can help you improve the way you run your facilities!