Today’s organisations are looking to make significant cost reductions and exploring new ways to do more for less. That’s why one of the main requirements of a modern facilities manager is to meet a company’s tight budget requirements.
Even if a business doesn’t have a specific strategy or the right technology to help achieve this, an FM is expected to start cutting costs from day one. The question is, where do you start? Here are our top tips to help FMs cut operational costs:
Energy bills for commercial properties can be sky-high, so it’s always an area worth paying close attention to. The most significant change in FM over the last decade has been the advancement in technologies around the concept of the Internet of Things (IoT).
The IoT utilises sensors that can monitor occupancy levels and adapt heating, cooling and lighting when a room is (or isn’t) being used. Of course, the application of smart technology requires a financial outlay, which might not always be possible; however, a strong business case outlining ROI can go a long way. And, if there’s absolutely no room in the budget…
Become A Smarter Buyer
Rather than focus on the price of products or services supplied as a tactical saving opportunity, shift your focus to value. For example, does your supplier work with you to recommend efficiency savings or new innovative solutions to help you address your challenges? The ideal supplier should have the confidence to challenge the way you do things and be able to recommend key areas to save money.
Once you’ve selected the right supplier, it’s time to negotiate on price. Sometimes, consolidating everything to one supplier can help make savings on delivery and administration costs.
Be More Sustainable
There’s an assumption that greener solutions will be more expensive, which isn’t always the case. Waste reduction, for example, can lead to a decrease in consumption and, in turn, costs. Not only can such green initiatives considerably reduce energy bills, but they can also contribute to your organisation’s green credentials.
Cutting reactive maintenance is an effective way to achieve cost reductions. Reactive maintenance requires immediate attention and the costs associated with fixing an issue that’s already impacting on operations and, potentially, customer and employee experiences. Being more proactive through regular, planned checks and maintenance, whether that’s testing machinery/computer systems all of the way through to checking the toilets to ensure they’re functioning correctly, can reduce the demand for costly after-hours or emergency service calls.
Ultimately, if you work closely with suppliers who understand your challenges and are open-minded when it comes to innovative technology and green solutions, you’re on the way to achieving significant cost-savings for your organisation.
For news, opinions and insights on all things FM and the built environment, stay tuned to the PRS blog. Alternatively, if you’re looking for an FM professional for your business, contact our specialist team today.