Blog #20 6 ways CAFM can help facilities teams reduce cost

Introduction

Computer-Aided Facility Management (CAFM) is a software-based tool that can help businesses manage their facilities, assets, and maintenance tasks in a more cost-effective way. At the moment Facilities teams are being asked to do more with less and CAFM is an ideal way to help show cost savings to the business and show the value of the Facilities function. In this blog, we will explore six specific ways in which CAFM can help businesses reduce costs.

1: Centralised data management

One of the most significant cost-saving benefits of CAFM is that it provides a centralised database that can be accessed by various departments within the organization. This means that all data related to facilities, assets, and maintenance tasks are stored in one place, making it easy for managers to access and analyse information. This centralised approach helps reduce the duplication of efforts and minimizes errors, which can save businesses time and money. Having a centralized database also means that businesses can keep track of maintenance tasks, repairs, and other expenses related to facilities and assets. This allows businesses to have a clear picture of the overall maintenance costs and make informed decisions regarding asset management. By having a better understanding of maintenance costs, businesses can identify areas where they can reduce costs and optimize their maintenance schedules.

2: Improved Asset Management

CAFM can help businesses optimise their asset management processes, which can lead to significant cost savings. By keeping track of all assets in a centralised database, businesses can track the life cycle of each asset, including when it was purchased, when it was installed, and when it requires maintenance. This information can help businesses determine the most cost-effective time to replace or repair assets, reducing unnecessary costs. Moreover, CAFM can help businesses identify which assets require more maintenance than others, allowing businesses to prioritise their maintenance efforts. This approach can help businesses reduce their maintenance costs while ensuring that their critical assets remain operational. By having a better understanding of their assets, businesses can make informed decisions about when to repair or replace assets, which can lead to significant cost savings over time.

According to a study by the Royal Institution of Chartered Surveyors (RICS), the use of CAFM software can result in a 5% to 10% reduction in operating costs for facilities. This study was conducted in the UK and involved a survey of 16,000 professionals in the property and construction industry.

3: Preventative Maintenance

Preventative maintenance is an approach to maintenance that involves conducting regular checks and repairs to avoid major breakdowns. This approach can help businesses reduce their maintenance costs by identifying and fixing issues before they escalate. CAFM can help businesses implement a preventative maintenance strategy by tracking and scheduling maintenance tasks. This ensures that maintenance is conducted regularly, reducing the likelihood of unexpected breakdowns. Moreover, CAFM can help businesses track the costs of preventative maintenance, allowing them to determine the cost-effectiveness of their maintenance strategy. By identifying which assets require more preventative maintenance than others, businesses can make informed decisions regarding the maintenance schedule and the replacement of assets. By implementing a preventative maintenance strategy, businesses can reduce their overall maintenance costs and avoid unexpected repair expenses.

4: Efficient resource allocation

CAFM can help businesses allocate resources more efficiently. By tracking the maintenance history of assets, businesses can determine which assets require more maintenance and allocate resources accordingly. This approach can help businesses reduce their maintenance costs by ensuring that they are not overspending on assets that require less maintenance. Moreover, CAFM can help businesses optimize their maintenance schedules. By tracking the maintenance history of assets, businesses can determine the optimal time to conduct maintenance, minimizing downtime and maximizing asset availability. This approach can help businesses reduce their maintenance costs while ensuring that their critical assets remain operational.

5: Improved communication

CAFM can help improve communication within the organisation, which can lead to cost savings. By providing a centralized database that can be accessed by various departments, businesses can ensure that all departments are on the same page. This can help reduce errors and misunderstandings, improving efficiency and reducing costs. Moreover, CAFM can help businesses track communication related to maintenance tasks. By keeping a record of all communication related to maintenance tasks, businesses can ensure that all stakeholders are informed and that all necessary information is shared. This can help reduce delays and errors, minimizing the risk of costly mistakes.

A case study by NHS Shared Business Services, a provider of business support services for the UK National Health Service, found that a large hospital trust in the UK saved £1.5 million ($2.1 million) per year in maintenance costs by implementing a CAFM system. The system helped the hospital trust reduce downtime, improve asset management, and increase the efficiency of maintenance processes.

6: Data analysis

CAFM provides businesses with the ability to analyse data related to maintenance tasks, assets, and facilities. This data can be used to identify patterns and trends, allowing businesses to make informed decisions regarding maintenance schedules and asset management. By analysing this data, businesses can identify areas where they can reduce costs and optimise their operations. For example, businesses can use data analysis to identify assets that require more maintenance than others. This can help businesses prioritize their maintenance efforts, reducing maintenance costs while ensuring that critical assets remain operational. Additionally, businesses can use data analysis to identify areas where they can reduce energy consumption, minimising energy costs and improving sustainability.

Conclusion

In summary, CAFM can help businesses reduce costs and improve their operations by providing a centralised database, optimising asset management processes, implementing preventative maintenance strategies, allocating resources efficiently, improving communication, and analysing data. By taking advantage of the benefits of CAFM, businesses can reduce their maintenance costs, avoid unexpected repairs, and minimize downtime. Additionally, CAFM can help businesses improve their overall maintenance strategy, ensuring that critical assets remain operational while reducing maintenance costs.

The benefits of CAFM extend beyond just cost reduction. By implementing CAFM, businesses can improve their overall asset management processes, improving their operational efficiency and reducing the risk of asset failure. Furthermore, CAFM can help businesses improve their sustainability by identifying areas where they can reduce energy consumption and waste.

Overall, implementing CAFM is a wise investment for businesses looking to improve their operations while reducing costs. CAFM provides businesses with the tools they need to manage their facilities, assets, and maintenance tasks in a more efficient and cost-effective way. By leveraging the benefits of CAFM, businesses can optimize their maintenance schedules, allocate resources efficiently, and improve their overall asset management processes. This, in turn, can lead to significant cost savings and improved operational efficiency, making CAFM a powerful tool for businesses looking to remain competitive in today’s fast-paced business environment.

A report by the UK Government’s Crown Commercial Service estimates that the use of CAFM software can result in a 10% reduction in FM costs for public sector organisations in the UK.

This report also states that the implementation of CAFM software can help public sector organisations meet their sustainability targets by reducing energy consumption and greenhouse gas emissions.

Share this post:

Free Demo

Contact Us

MENU

Menu