As we push through the last month before the new year, many companies are preparing for a potentially tumultuous economic landscape in 2023. With the growing likelihood of a recession next year and into 2024, executives are preparing their teams by implementing cost-saving initiatives to minimize the recession’s impact. You might think the first step is to pause budgets for technology updates, but we disagree. Outdated facilities management software results in inefficiency across the board and can lead to unplanned maintenance, labor costs, and more. Today, our team unpacks four proven cost-saving benefits of FM and logistics software to help you save money and generate additional revenue for future growth.
Optimized Asset Management and Preventative Maintenance Abilities
One of the most significant and often underestimated cost-saving benefits of FM software comes through asset management. Asset management, in our case, is an all-encompassing solution, as SCLogic helps you manage assets through their lifecycle through comprehensive analytics, specifically through our Asset Logistics Workgroup. So, how can asset management save you money? Maintenance is one of the highest costs for enterprises, and with outdated software, costs can add up quickly. Companies spend an average of 21-40% of their operating budget just on cleaning and maintenance of supplies, and with reactive maintenance, this percentage can be even higher.
Investing in preventative maintenance not only helps reduce this spending but generates revenue as well. According to a study by Jones Lang LaSalle, preventative maintenance can result in up to a 545% return on investment (ROI) for a large facility. At SCLogic, our in-building logistics software, Intra, manages your asset maintenance lifecycle, allowing you to create customized preventative maintenance schedules, notify team members, and monitor analytics such as the mean time between failure and the mean time to repair. Outside of scheduled maintenance, Intra can help you keep track of fixed assets across your facility to ensure you’re not losing money on additional purchase orders. Plus, you can generate additional revenue through asset recycling, reuse, and resale programs.
Reduced Resource and Energy Use Cost Savings
Another excellent optimization benefit that provides cost savings for your facility is FM software’s ability to identify gaps in your resource usage. With the ever-expanding hybrid workforce, large companies with both in-office and virtual employees can benefit significantly from this. If your facility is not at maximum capacity, there are likely areas within the office that do not get much use, if any. Without automation in your facilities management department, energy expenditures (HVAC, electricity, water, etc.) will likely cost you significantly. With our Workplace Services Workgroup, we help you identify and manage areas with low activity in your facility, allowing you to create configurable schedules for energy use. To take this even further, there are many initiatives promoting businesses to reduce their carbon footprint and future emissions. Looking into what state and federal funding and investment options are available can save costs while putting your business on a sustainable trajectory.
Regulatory Compliance and Cybersecurity Protection
Compliance and cybersecurity are two words no business owner wants to hear. But, in the age of technology, ensuring that your business is adequately protected is essential. When business owners consider technology that may fall victim to an attack, they overlook software used for facilities management, resulting in a higher likelihood of a cyberattack due to outdated systems. Additionally, for industries with strict compliance standards like healthcare, government, and finance (all of which SCLogic specializes in serving), one mistake can cost millions. With new 2023 data protection laws and compliance programs, businesses must be on top of their game.
Unfortunately, one small mistake can lead to an entire compliance audit or cybersecurity attack, leaking data that may be stored within your internal FM or logistics software regarding employees, staff, patients, customers, and visitors. The average cost of a healthcare data breach is $10.1 million per incident and almost $6 million for finance. That is why we created Intra to serve some of the most highly targeted industries, focusing on providing a comprehensive, user-friendly, and secure solution.
Data & Analytics Resources for Financial Strategy
Lastly, data capture and analytics management are massive for cost savings and revenue generation and should be noticed more by facilities management teams. Generally, businesses look at data from the customer-facing lens, which is fantastic for strategy (if you can’t tell, we are huge proponents of analytics management). However, it’s essential not to overlook internal data and analytics like internal KPI monitoring or SLA management with partners. Currently, 95% of businesses cite the need to manage unstructured data as a top issue, with over 97% of companies investing in data and AI. While you’re not alone in wanting to update your current data practices, investing now will ensure that you don’t fall behind competitors.
What kind of data are we talking about regarding cost savings for facilities management? With Intra, we created a comprehensive analytics dashboard that is the central hub for monitoring all facility’s workflows, as well as configurable KPIs and SLAs. We understand that each industry and facility have unique needs and believe that easy access to monitoring and analyzing this data promotes business growth and financial efficiency. For example, customers using our Mail & Parcel Workgroup can monitor delivery routes, misplaced packages, and more for each carrier, identifying which partners exceed and fall short of SLA requirements. Additionally, FM teams can monitor task completion for employees and optimize your facility with automation after analyzing gaps. This allows your team to re-evaluate SLAs that may be costing you and identify efficiencies to streamline labor costs.
Save Money and Begin Digital Transformation with SCLogic
For many businesses, feeling secure in your systems is critical during a time of financial uncertainty. While it may seem counterintuitive to consider the purchase or update of new software during this time, the financial stability and revenue generation that comes from software like Intra is a strategically sound decision. You are providing your team with the resources to confidently optimize your facility and bring in multiple opportunities for new revenue generation during a recession. As businesses continue their digital transformation process, it’s time that we get you up to speed. To learn more about the cost savings of our workgroups, email [email protected] or schedule a demo with our team today.