Demand to reduce facilities spend exists in all industries. Healthcare facilities are under increased pressure to lower patient costs, requiring reductions in facilities spend, and commercial real estate providers face added pressure to lower occupancy costs, reports GreenBiz. The effect is easy-to-see; Facilities Managers must work to reduce facilities spend wherever possible. Fortunately, the right software is integral to solving the problems with managing spend and forcing it into retreat.
Why Are Facilities Managers Struggling With Managing Facilities Spend?
The problem with managing facilities spend is complicated. Facilities already operate within record-breaking, low budgets, but the pressure to drive costs down continues. Savings in facilities spend add up quickly, and as explained by PlantWeb, reducing the replacement asset value (RAV) of facility assets by moving from typical to best-in-class processes could result in annual savings of up to $10 million, depending on the value of such assets.
Unfortunately, Facilities Managers are tasked with lowering spend and left to their own devices to cut costs. For the C-Suite, lowering costs is simple; cut the maintenance budget. This can lead to catastrophic effects in building assets, lowering costs temporarily and increasing long-term costs simultaneously.
Which Areas of Focus Are Key to Reducing Facilities Spend?
Deploying facilities management software, including a computerized maintenance management system (CMMS), is key to reducing facilities spend, but it helps to know the key areas of improvement necessary to facilitate such reductions. Deploying software must consider the needs of the following zones of focus, also known as central circles of facilities management:
- Simplify the “legwork” of facilities management tasks.
- Understand, implement, and follow safe practices.
- Reduce unplanned, reactive maintenance.
- Educate your team on reporting issues.
- Use modern, software-as-a-service (SaaS) platforms for facilities management.
- Follow standardized, optimized facilities management practices.
How to Bring These Circles Into the Facilities Spend Conversation
When approaching the C-Suite about cost reductions and investment into facilities management software, Facilities Managers should demonstrate how the investment will translate into long-term savings. This encourages stakeholder support. Furthermore, Facilities Managers should take these steps to explain how software impacts each area of focus.
- Automation of facilities management tasks reduces labor costs, like using virtual invoicing to complete payment processing and eliminate accounts payable responsibilities in facilities management, says Service Channel.
- Following safe practices improves guest experiences and reducing liability.
- Preventative maintenance literally “prevents” most cases of reactive maintenance, up to 70 percent, reports Ricky Smith via FacilitiesNet, but things may still go wrong. The preventative maintenance program must include controls to limit preventative spending, allocating some funds for reactive maintenance, as noted by Healthcare Finance News.
- Education on using the software will ensure greater adoption rates and improve the efficiency of team members.
- SaaS platforms traditionally cost less than terminal-based systems and are scalable.
- Optimized practices continue to increase ROI, boost brand value, enhance guest experiences, and push profitability forward.
Include These Areas in Your Budget for Reducing Facilities Spend Now
The best-laid plans for reducing facilities spend fall apart without the right software. Fortunately, ENTOUCH has taken the time to develop best-in-class smart building solutions and worked one-on-one with businesses to drive cost-savings to their limits.