8 Ideas to Boost Your Facilities Management Cost Savings

Facilities management (FM) is an essential yet complex function of any multi-site business. The quality of your customers’ in-store experiences, and your company expense budget, depends partly on how well your FM department operates. Balancing between the two requires a holistic approach to FM program optimization in which cost cuts don’t result in sacrificing quality and efficiency. That’s where true cost reduction and savings can make a difference.

To help you get started, here are eight ideas to boost your facilities management cost savings.

1. Upgrade Legacy Work Order Software to Improve Operational Efficiencies 

   Legacy work order software can keep track of job order progress but be limited in managing workflows throughout your program. An industry-leading work order management platform (WOM), part of an Integrated Facilities Management (IFM) solution, is a more comprehensive approach designed to improve program transparency for better operational efficiency.

   WOM can track maintenance history, schedule service and preventative maintenance, and oversee inventory status一and that’s just for starters. NEST Facilitate is a cloud-based, end-to-end work order management platform with automated workflows, dynamic access to location data and asset history, and mobile-friendly functionality一from anywhere.

   With NEST Facilitate’s proprietary technology, you can assign service providers and follow updates and alerts throughout the work order lifecycle. The platform is free of tech fees for clients and contractors and includes secure portals for permission-dependent access.

   With full visibility of your FM program, you’re empowered to optimize the allocation of labor and resources, reduce equipment downtime, and improve operational efficiencies一leading to program savings.

2. Streamline Workflows with Automation

   Using automation technologies that integrate with your work order management system can make facility management processes even more efficient and cost-effective. There are many tools available that can help organizations streamline their processes, reduce labor costs, and improve accuracy. Energy and maintenance management are two examples where automation can significantly impact costs.

   Automation can also help organizations manage their facilities remotely, reducing the need for on-site staff.

3. Embrace Energy-Efficient Practices

   Energy is one of the highest expenses of FM. From heating and cooling systems to lighting and electronics, energy costs can add up quickly. By implementing energy-efficient technologies and practices, organizations can reduce their energy costs significantly. Improvements include using energy-efficient lighting systems, installing smart thermostats, ensuring all electronics are turned off when not used, and even moving to renewable energy sources.

4. Service Provider Network in Facilities Management Services: 

   Repairing or replacing assets can consume a large part of your budget, so ensure you’re doing what you can to extend asset life. Instead of cutting product or maintenance costs to save money in the short term, prioritize reducing replacement costs in the long term.

   As part of your maintenance protocols, consider the following:

   • If your assets frequently need repairs, you may save more money in the long run by replacing them sooner. The cost efficiency of new equipment often outweighs the costs of constant repairs and productivity lags.
   • Are you spending too much on replenishing supplies? You can save money by supplying your employees with better products that optimize proficiency by enabling them to do more in less time.

   Of course, adding robust preventative maintenance (PM) also helps. With a platform such as Facilitate and related analytics, trend analysis can more accurately identify the root causes of equipment failures and schedule maintenance before a costly repair is needed.

   According to industrial plant professional trade publication and website Reliable Plant, PM also reduces the more costly unscheduled downtime and labor characteristic of reactive maintenance一up to an estimated 12 to 18 percent.

   For an even better approach to asset management, consider predictive maintenance. This next-generation protocol utilizes equipment behavior monitoring to anticipate the probability of a future breakdown. An alert prompts an online maintenance response before the issue appears, significantly improving worker safety and reducing overall cost and equipment downtime.

   Your facilities benefit from regular maintenance, too. A well-maintained facility will be more efficient, reduce energy costs, and improve the overall user experience. Organizations should regularly inspect and maintain their facilities, fixing any issues as soon as they arise.

5. Consolidate Reporting for Better Decision Making

   When auditing your locations, can you view all expense reports when and wherever you need to? Can you keep your data organized and easily accessible, or are you still using spreadsheets?

   Even data from legacy software programs must often be manually transferred to other business systems, such as procurement, budgeting, and finance. This can be time consuming and error prone.

   NEST Facilitate easily integrates with most existing business systems so that costs and other program KPIs can be viewed from one platform and in full organizational context. Easily access historical and real-time program data to identify trends, manage budgets, and drive cost savings. This better informs decision making for improved organizational financial planning and strategic positioning.

6. Outsource一Smartly

   Outsourcing certain aspects of facilities management, such as cleaning, maintenance and trades, can be more cost-effective than hiring in-house staff. You can achieve savings through lower employee overhead and economies of scale in compliance review and maintenance product purchasing.

   Of course, vetting your vendors is essential for protecting your business, and should include a review of their capabilities, experience, locations, certifications, and insurance coverage, at a minimum. Using unqualified vendors now may cost you later, and vetting can be resource intensive.

   NEST’s IFM solution includes access to a pre-vetted list of qualified independent service providers (ISPs) to help maintain your business. And as your single point of contact for ISP coordination, NEST saves you valuable administrative time and the headaches often associated with multiparty scheduling and organization.

   NEST also uses service level agreements (SLAs) and negotiated, scaled pricing rather than the usual service provider hourly, trip, overtime, and emergency callout fees. This translates into improved coordination across sites, workflows, maintenance schedules, and significant cost savings, which are passed on to you.

7. Sharpen Procurement Practices

   Procurement is an essential element of FM and requires diligence in efficiently purchasing products and services. Organizations should negotiate with suppliers to secure the best possible prices, take advantage of bulk discounts, and look for alternatives to more expensive products.

8. Optimize Savings with a Custom IFM Solution

   Every FM program has its own set of distinct goals and challenges across its locations, people, and systems. To identify your best opportunities for cost savings with improved performance, work with IFM experts to customize a solution that aligns with your organization and goals.

   NEST’s IFM team includes industry specialists and experts in FM operations, quality assurance, compliance, finance, and other areas. Taking a consultative approach, NEST can provide your FM team and company leadership with insights and actionable recommendations to capture program savings, develop long-term facility maintenance and budgeting strategies, and better position your organization for growth.

Contact NEST to learn more about its best-in-class IFM solution and how it can help boost cost savings and optimize your FM program today.