4 Ways to Control Facility Management Spend
As businesses face increasing expenditures for state-of-the-art infrastructure to remain competitive, controlling facility management spend becomes ever more important. Strategic planning is necessary to align capital spending with budgets and prevent misallocation of resources. While budgets are typically controlled by individual departments within the organization, there are steps each manager can take to contain costs. Here are four ways facility management can control spending.
Purchase Pre-owned, Refurbished or Rental Equipment
Pre-owned equipment that has been well maintained or refurbished can offer significant cost savings over purchasing new. The difference between pre-owned and refurbished equipment is that refurbished equipment has been mechanically overhauled to replace worn parts. If the equipment you intend to purchase is a relatively new technology or you only need it short term, you may find that renting is a less expensive alternative. In addition, maintenance and repairs of rented equipment are usually the responsibility of the vendor and can lower your cost of operation.
Maintain Existing Equipment
Preventative maintenance can help reduce operating expenses and create a safer work environment. It improves the performance of the equipment to produce better quality product and reduces waste. Scheduling routine maintenance prolongs the life of your equipment and reduces the cost of equipment repairs and premature replacement. It helps avoid unscheduled downtime and reduces the cost of overtime paid to employees responding to the emergency for both repairs and compensation of lost production time. Moreover, UPS maintenance improves your organization’s reliability and increases customer satisfaction.
Equipment costs can vary drastically from one vendor to the next. You can save a substantial amount of money by evaluating each vendor’s equipment based on price, performance and quality. While cost is certainly a determining factor in choosing equipment, quality may be more relevant. Selecting critical equipment should include discussion around proprietary software, cost to maintain and total lifecycle cost. Research the supplier and the equipment through product reviews and testimonials. Have a thorough understanding of what is included in the price. If a portion of the equipment cost includes training and service, you may receive greater savings over the long term by paying a higher initial price.
There are some service organizations that are independent and can help recommend the right UPS System solution that fits your specific needs, not what the manufacturer just happens to be selling.
Organize Data and Analytics
Well organized data and analytics can provide visibility of expenses across your organization to enable you to allocate resources in the most efficient manner. This requires that all data be stored in a central location to provide accessibility. Once all relevant data is retrievable, predictive analysis can be used to predict system failures, detect fraud and manage risks. Tracking real time data can help you reduce time to market, lower utility costs and reduce a host of other facility related expenditures.