With the high likelihood of a looming recession coming in 2023, financial concerns are at the top of the priority list for many businesses. As directors try to cut costs, managers restructure their departments, and companies continue to tighten their grip on spending to prepare, cost-saving strategies remain at the forefront of business operations. When preparing, spending money on new technology is the last thing on your mind. However, investing in automation software often reduces costs significantly for facilities and provides opportunities for long-term revenue generation. Today, our team of in-building logistics software specialists at SCLogic discusses four ways investing in operations software saves money and maybe a worthwhile proactive investment before the upcoming recession.
Minimizing Point Solution Costs
When working with software in your facility, understanding the uses of platforms and point solutions are essential. In short, point solutions provide a directed solution for a specific problem that your facility has, for example, inventory management for a healthcare facility or visitor tracking software for a government facility. In contrast, platforms provide multiple comprehensive solutions, somewhat like all-in-one software. You may think you’re saving money by only using point solutions, but consider the differentiating subscription costs, customer service fees, and more, all of which are billed differently. By switching to a software platform like Intra, you are cutting high costs and expenses from multiple point solutions and reducing the costs for your facility’s needs, such as asset management, mailroom operations, and more.
Optimizing Proactive Maintenance Strategy
Did you know that, on average, U.S. facilities spend an estimated $50 billion in unexpected equipment downtime? Yes, you heard that right. The cost of reactive maintenance is exponential compared to preventative maintenance, but facilities teams find themselves caught up in daily tasks. According to Cushman & Wakefield, investing in proactive maintenance software is estimated to reduce repair costs by 40 to 60 percent annually, incredible savings for your facility. Using our Asset Logistics Workgroup (both for enterprise and higher education), you can establish asset lifecycles for all important equipment and monitor the mean time between repair and the mean time between failure to establish task schedules. The result? Optimized equipment with minimal downtime and a team confident that their assets will work properly.
Implementing Automations to Reduce Labor Costs
You don’t have to be planning for a recession to restructure your team, and often, companies with minimal automation spend significant funds on employees to assist with task completion. Automation software is vital for business growth. In fact, over 50% of IT leaders say that automation saves departments between 10 and 50 percent of costs previously associated with manual tasks. For many facilities, this also does not mean losing a significant number of employees once automations are in place, but rather, restructuring your team to use less manpower on singular tasks, in turn boosting productivity across your entire facility and generating additional revenue. A win-win!
Organizing Inventory & Surplus Management
One often overlooked but equally important way operations software can help your team cut costs is through inventory and surplus management. Inventory management is a difficult task for any industry, and if done incorrectly, it can lead to excessive spending for lost or misplaced equipment replacement. Especially for large-scale facilities, warehouses full of additional inventory can feel almost impossible to organize. With Intra, our workgroups help you strategically organize inventory across your entire facility. How does this benefit you? First, you can optimize storage space, and for specific industries, you can charge departments for their storage usage, generating additional revenue. Additionally, you can both improve ESG and sustainability goals and foster revenue generation through the sale and recycling of gently used or unused assets.
Strategize Cost Savings with SCLogic
Undoubtedly, the end of this year is bringing a whirlwind of change. Not only are businesses hustling through Q4 to meet their goals for the end of the year, but they are also planning for a potentially tumultuous financial year in 2023. With so many changes, strategizing for both cost efficiency and stability is key. At SCLogic, we have worked with industry leaders for over 25 years to perfect our software and prioritized solving the most complex pain points of facilities directors and teams, all under one innovative software platform. Intra was created to be your ultimate software solution, automating your facility’s needs, reducing costs, and generating revenue. To see how our workgroups can optimize your facility, email [email protected] or schedule a demo with one of our team members today.