5 Proven Ways a CAFM System Boosts Financial Performance
Getting senior leaders on board with CAFM (Computer-Aided Facility Management) means you need to demonstrate the financial impact of the software. But how can you measure the return on investment before you’ve implemented the platform?
When making the case for investment for CAFM, you need to prove that there will be significant cost savings for the business, so where should you start? To help you build a business case for CAFM, here are 5 proven ways that CAFM can save your business money:
- 1. Energy Efficiency
- 2. Tenant Retention
- 3. Preventative Maintenance Tools
- 4. Budget Transparency
- 5. Automated Processes
1. Energy Efficiency
CAFM systems are instrumental in supporting Environmental, Social, and Governance (ESG) objectives by offering robust tools for data collection, analysis, and reporting. This software simplifies facilities management and enhances ESG scores. So how does CAFM support ESG considerations? CAFM software allows businesses to efficiently monitor, manage, and optimise their operations from an ESG perspective. By implementing energy-efficient maintenance strategies, you can reduce energy waste and cut costs.
Ensuring ESG compliance has become a necessity in the modern business world. But it also helps to extend the lifecycle of your assets and buildings, thereby preserving their value. Optimising equipment for energy efficiency reduces the need for frequent replacements and extends its operational lifespan. This means you can reduce overall labour and equipment costs.
It’s also important to note that energy-efficient buildings can help attract new investors and tenants. Since 85% of commercial rented buildings are being pushed to improve energy efficiency by 2023—it’s vital that property managers take action or else they won’t be able to lease out their commercial buildings. By showcasing your commitment to sustainability, you can boost your business’ reputation and bolster your revenue streams with new tenants, both residential and commercial.
Since Elogs CAFM+ Service Desk is integrated with Prosure360, you can also ensure that your supply chain aligns with your business’ environmental values. Having total control of your supply chain means you can avoid working with non-compliant suppliers—ultimately, this will save you money as you can make sure your suppliers are dedicated to keeping your properties energy-efficient.
2. Tenant Retention
As a facilities manager (FM), keeping your tenants happy is crucial. You need to be able to respond to their needs, resolve problems quickly, and always ensure their safety and comfort. Given that renters make up such a large proportion of business revenue for property management companies, tenant satisfaction should be a top priority. It is equally important to maintain positive relationships with commercial tenants as you’ll be able to reduce vacancy rates and improve your professional reputation within the commercial real estate industry.
If your buildings are constantly experiencing equipment failures and other problems which aren’t dealt with promptly, your tenants are bound to become unhappy. But a CAFM system ensures swift issue resolution, as well as empowering tenants to raise issues with their FM. With Elogs CAFM, you can also access a 24/7 Service Desk which acts as an extension of your business. This enables tenants to call up anytime, day or night, and get their building issues sorted quickly and easily. In using CAFM to keep your tenants satisfied and secure, you can save money and boost revenue by:
- Ensuring stable rental income streams by getting tenants to renew their leases.
- Reducing the costs associated with frequent tenant turnover.
- Attracting new tenants through your strong reputation and client recommendations.
With real-time status updates, a CAFM gives you complete transparency of everything that’s happening in your buildings at any given time. Essentially, this means you can keep equipment in good working order, ensure compliance, and improve efficiency. In doing this, you’ll retain your existing tenants and cut costs in the process.
3. Preventative Maintenance Tools
Investing in a CAFM system with built-in Planned Preventative Maintenance (PPM) tools and planners can drastically reduce business costs. 60% of businesses associate preventative maintenance with decreased downtime and improved safety—they also view it as a cost-effective strategy.
Any CAFM system that includes these features can help you schedule maintenance tasks ahead of time and proactively address potential issues within your buildings. But how do these PPM planners reduce costs? Through using the PPM planners in your CAFM system, you’ll be able to:
- Reduce the frequency of expensive emergency callouts.
- Prevent costly breakdowns and save money on fixes and replacements.
- Avoid equipment downtime which could delay business operations.
- Extend the lifespan of your properties, preserving and adding value.
Unlike reactive maintenance, which often involves unexpected, pricey repairs, preventative maintenance helps you save money by fixing a problem before it even occurs. This proactive approach ensures your equipment remains efficient and effective, reducing overall operational costs.
CAFM software, with this level of functionality, is a worthy investment if you’re hoping to reduce costs and drive efficiencies. That’s why Elogs CAFM includes a PPM planner, with built-in training guides, to help you implement an effective preventative maintenance strategy.
4. Budget Transparency
CAFM systems give you total visibility of your buildings, meaning you can better allocate your budget. With robust reporting and analytical tools, you’ll have all the detailed insights you need to create a precise budget for your business. CAFM can help you spot spending trends across your organisation—you can use this information to make more accurate predictions for the next financial quarter. This reduces the risk of poor budget allocation and allows you to conduct business operations in a more cost-efficient way.
With a complete overview of your properties and assets, you’ll gain a clearer understanding of where your budget is being spent—this will help you to identify the most and least costly activities. CAFM software empowers you to adapt and optimise your budget to ensure cost-effectiveness by:
- Scheduling regular maintenance which will help to control costs.
- Improving asset lifecycle management to maximise operation and reduce repairs.
- Identifying areas where there have been unexpected costs so you can adjust the budget accordingly.
Ultimately, by leveraging the CAFM’s analytical tools, you can ensure that every penny within your business is put to good use.
5. Automated Processes
Arguably, one of the biggest cost benefits of a CAFM system is its ability to save time and resources. Without a CAFM, the processes involved in facilities management can be tedious and time-consuming. If your business still uses spreadsheets to keep track of your properties and assets, you could be wasting a lot of unnecessary time and energy. Given that spreadsheets require you to input data manually, it can be difficult to keep property information relevant and up to date.
CAFM automates these manual processes by giving you a holistic view of your buildings in real-time. This approach not only streamlines operational processes, but also reduces the amount of administration required. As the saying goes, “time is money”. So, instead of having multiple employees spending hours updating old spreadsheets, CAFM will do all the heavy lifting for you. This means you can reallocate staff time to maximise productivity and focus on other business priorities. By eliminating the labour-intensive task of manual tracking, CAFM enhances efficiency, reducing operational costs and optimising financial performance.
There are so many ways that a CAFM system can save money, but these are just a few to get you started when putting together your business case. By investing in CAFM, you’re making a strategic move to enhance your financial performance and set your business up for success. Based on the benefits and cost savings, it’s certainly worth the initial investment. With Elogs CAFM+ Service Desk, you’ll have all the tools and features needed to cut costs and streamline facilities management.
Boost revenue and reduce costs with Elogs CAFM+ Service Desk!