Controlling Facilities Management Costs

Jul 16, 2019 12:51:00 PM | 3 minute read

Understanding the maintenance cost structure of a single facility can be a challenge. Stakeholders first need to uncover where their spend is going and measure the effectiveness of their facilities management program. Organizations with nationwide facilities face a more daunting challenge, as getting visibility into spend per location may be difficult to achieve.

With technology taking a central role within strategic planning programs, companies at every position within the supply chain have a common opportunity: the ability to create stronger connections between leadership and maintenance tasks.

In fact, an Ubisense survey found that 40 percent of organizational leaders lack visibility into the real-time status of their company's internal processes. As a result, regional stakeholders struggle to understand how daily operations impact maintenance and management spend.

How can maintenance and operations leaders increase spend transparency? And where are there opportunities for proactive cost control?


Several factors can limit spend visibility. And the larger the organization, the greater effect this obscurity has on budget management. Organizational leaders may find it difficult to track spend across multiple locations, each having its own needs, traffic volume and cost structure.

Landlord management, warranty management and work order management each affect the budget in unique ways. Companies relying on outdated technology may find it impossible to accurately capture spend data, let alone use that intelligence to drive savings.

For example, let's say a company has several locations across a large region, and each store owner is responsible for managing a maintenance budget. Store owners contract local technicians as needed. At the regional level, stakeholders can see total maintenance spend for each store, but they lack the granular data needed to identify trends and cost-saving opportunities.

So what's the alternative? For many large organizations, the answer is to look for a facilities and asset management partner that can provide a more complete picture of overall maintenance spend. Taking a detailed look at where every dollar goes, a management partner can help companies visualize trends and gain insights such as identifying which assets consume the most maintenance resources so leaders can develop strategies to control or reduce costs.

Additionally, a management partner can facilitate cost-saving solutions with original equipment manufacturers, maintenance contractors and other businesses. An effective partner leverages its existing relationships with these third-parties to find solutions in a timely manner that will benefit the client, leaving organizational stakeholders free to focus on other important tasks.


Preventative strategies can extend the lifecycle of equipment and reduce the amount reactive repairs needed. While it may be impossible to completely eliminate all reactive maintenance work, it should never consume the entire budget.

An asset management partner can utilize equipment data to develop accurate maintenance schedules that improve equipment uptime and keep costs under control. The insight that granular equipment data uncovers allows stakeholders to predict future costs, determine additional capital outlays and identify resale and salvage opportunities over the lifecycle of each piece of equipment.

Additionally, equipment efficiency directly impacts energy usage. For example, outdated facility lighting can be a considerable source of lost money, and it may make financial sense to invest in newer, energy-efficient lighting solutions. There may be similar opportunities throughout the facility. Having a complete picture of equipment performance allows stakeholders to identify the root-cause of issues and make informed decisions that reduce costs and improve the business.


Organizations looking to control costs and optimize equipment performance can only do so much without the support of technology. From monitoring equipment performance on the automatic labor duration control, the role of technology cannot be overstated. Adopting new technology requires a strategy that outlines clear goals and key performance indicators. Monitoring nationwide performance and benchmarking against industry standards provides stakeholders the insight they need to make meaningful improvements to their maintenance program. Companies in fast-paced industries can quickly scale and gain flexibility by partnering with a management provider that can share best practices and guidance through implementation.

Controlling maintenance costs and identifying savings opportunities are complex challenges that require granular visibility empowered by technology. By working with an asset management partner, your organization can uncover opportunities for business growth. For more information, connect with an expert consultant at Vixxo today.