Reducing costs with facility management is one of the most important elements of facilities management services.
There are different ways to reduce costs in a company. In today’s competitive business environment, controlling operational costs while maintaining efficiency is essential for organisational success. Facility management plays a pivotal role in this effort by ensuring that your organisation’s physical infrastructure and related services are managed optimally.
A well-implemented facility management strategy can significantly reduce costs across various aspects of your business while improving productivity, safety, and sustainability. Below are some key ways facility management can help you cut costs and streamline operations:
Planning as the first step
This section is a general planning section. It could be reworded to focus more on identifying areas for improving cleaning efficiency specifically, such as identifying high-traffic areas or specific sanitation needs.
Facility management is a fairly multi-dimensional process and companies often do not realise the amount of cost-cutting that is feasible within it. The possibility of task automation and the entry of newer technologies in this field have made room for efficient workplaces and smarter budget allocation.
1. Energy Efficiency Initiatives
One of the most effective ways to reduce operational costs is by cutting down on energy consumption. Limiting a building’s hours of operations can be an easy and effective strategy for cutting down on operational costs. Simple actions, such as minimising the unnecessary use of fans, air conditioners and lights, should be encouraged. Efficient use of appliances like coffee makers and vending machines is also essential. Installing motion-sensor technology can further reduce energy consumption by automatically switching off fans, air conditioners, lights, and vending machines after hours.
Energy-saving solutions such as energy-efficient lighting, optimising HVAC, installation of solar rooftops etc. can be implemented. Regular maintenance and energy audits help identify areas where energy is being wasted and can be optimised. These initiatives not only lower energy bills but also contribute to the organisation’s sustainability goals. However, it is equally important to take further steps to ensure that these equipment are not increasing the energy cost.
Also read: Energy Saving Tips for Your Facility
2. Preventive Maintenance Programs
Reactive maintenance, or fixing things only after they break, can lead to higher costs over time. Continuing to use such machinery can pose safety hazards to employees, drain resources unnecessarily, or even make your business susceptible to fines. In contrast to this, planned preventive maintenance is much safer, efficient, and cost-beneficial. A preventive maintenance program ensures that equipment, systems, and facilities are regularly inspected and serviced, reducing the risk of unexpected breakdowns and expensive emergency repairs. By addressing issues early on, businesses can extend the lifespan of their assets and avoid unnecessary downtime.
For instance, an This can be altered to focus on preventive cleaning measures like regularly cleaning filters or air ducts to maintain air quality. that is regularly maintained and monitored will do well for many years before needing a replacement. This proactive measure saves companies from large, unexpected costs and helps equipment run efficiently.
Tip: Schedule routine maintenance checks for HVAC systems, elevators, electrical systems, and other critical infrastructure to avoid costly repairs or replacements.
3. Space Optimisation
Facility management professionals can help organisations optimise the use of their physical space. Through space planning and layout design, companies can maximise productivity, and reduce overhead costs associated with unused or underutilised areas. This can result in savings on rent, utilities, and other operational costs.
Tip: Conduct a space utilisation assessment to determine how efficiently your office, warehouse, or retail space is being used. This can lead to consolidation and better space management.
4. Sustainable Practices
Incorporating sustainable facility management practices can lead to significant long-term savings. This includes everything from reducing waste, recycling materials, and managing water use, to implementing eco-friendly cleaning practices. Managing waste disposal efficiently and encouraging recycling can cut down on waste removal costs. Facility managers can also help businesses transition to renewable energy sources like solar power, further reducing utility costs.
Tip: Switch to eco-friendly cleaning supplies and implement recycling programs to reduce waste and lower disposal costs.
5. Vendor Management and Outsourcing
Facility management often involves coordinating multiple service providers, from cleaning and security to landscaping and technical maintenance. Streamlining vendor management and outsourcing non-core functions to reliable third-party providers can lead to cost savings. By consolidating services under one facility management provider or outsourcing specific tasks, businesses can reduce administrative burdens and negotiate better pricing.
Tip: Consider outsourcing non-essential services such as janitorial work, landscaping, and pest control to trusted vendors who can deliver cost-effective solutions.
Explore our comprehensive facility management services to see how we can support your business.
6. Automation and Smart Technology
Leveraging automation and smart technology can drastically reduce operating costs by improving the efficiency of building systems. Smart sensors, IoT-enabled devices, and automated building management systems (BMS) can monitor and control lighting, HVAC, security, and other functions based on real-time data, reducing energy waste and manual labour. In the long run, welcoming newer technologies into the facility management processes can help fast-track routine procedures, ensure accountability and efficiency at workplaces and of course, significantly reduce overall costs.
Tip: Invest in building automation systems (BAS) that monitor and control energy use, lighting, and climate control based on occupancy and usage patterns.
7. Health and Safety Compliance
Facility management ensures that your workplace meets health and safety regulations, preventing costly fines, legal issues, or downtime due to non-compliance. FM teams can keep track of the latest industry standards and make sure your facility adheres to fire safety, sanitation, and occupational health guidelines. Proactive compliance management reduces the likelihood of accidents, which can lead to expensive lawsuits or compensation claims.
Tip: Regularly audit your facility’s safety compliance to ensure all systems, from fire alarms to emergency exits, are fully functional and up to code.
8. Reducing Waste and Recycling
Managing waste disposal efficiently and encouraging recycling can cut down on waste removal costs. Facilities managers can introduce recycling programs for paper, plastics, and electronics, which not only reduce waste disposal expenses but may also generate revenue from recyclable materials.
Tip: Establish clear recycling stations and educate staff on proper waste disposal methods to reduce waste generation and cut disposal costs.
9. Contractor Negotiations and Bulk Purchasing
Facility management professionals are adept at negotiating service contracts and purchasing supplies in bulk for stocking and restocking. This can lead to significant cost reductions when dealing with contractors or vendors. By negotiating multi-year service agreements or purchasing supplies in bulk, businesses can take advantage of volume discounts and lock in lower rates.
Tip: Consolidate vendor contracts where possible to secure better terms and discounts through long-term agreements.
10. Improving Workforce Productivity
Facility management doesn’t just focus on the physical infrastructure; it also helps create environments that improve employee productivity. Comfortable, well-maintained spaces that are optimised for work encourage better performance and reduce absenteeism. Healthy indoor air quality, ensuring hygiene in common areas such as bathrooms, appropriate lighting, and ergonomic workspaces can help reduce health issues and increase productivity, leading to cost savings in the form of higher output and lower healthcare costs.
Tip: Invest in ergonomic furniture and improve indoor air quality to create a more comfortable and healthier work environment for employees.
Overall:
- Remove or adjust sections on HVAC, space optimization, and energy efficiency to be more cleaning-focused (e.g., energy-efficient cleaning products, sustainable cleaning practices).
- Expand the discussion on cleaning contracts, outsourcing cleaning services, and bulk purchasing of cleaning supplies.
- Add more details on cleaning automation technologies (e.g., robotic vacuums, automated floor scrubbers).
- Highlight waste reduction specifically related to cleaning (e.g., recycling cleaning materials, waste reduction in cleaning practices).
