Facility management software is quickly becoming a popular choice for businesses seeking to streamline their operations, reduce costs, and improve efficiency. But with so many options on the market, many decision-makers wonder when they can expect to see a return on investment (ROI) from their software purchase.
The answer, of course, varies depending on a range of factors, including the type of software, the size of the organization, and the specific goals of the company. However, recent research suggests that the benefits of facility management software can be significant and immediate. In fact, a survey conducted by Brightly found facility management professionals saw 19.4% savings on lower material costs after implementing a computerized maintenance management software solution. The same survey discovered that companies have saved up to $10,000 annually by using predictive maintenance software.
Another survey from Deloitte states that predictive maintenance software enhances equipment uptime by 10–20% while decreasing total maintenance expenses by 5–10% and maintenance planning time by 20–50%. However, the time and actual ROI varies among different industries and depends on several factors. In this blog, we will explore the key factors that impact ROI and the benefits of facility management software and discuss how facility management software can deliver significant value to your organization.
What Are the Financial Benefits of Implementing Facility Management Software?
Here are some of the most significant financial benefits of implementing facility management software:
Improved Asset Management
Asset management software can help you better manage your business assets by providing a centralized location to track asset information such as location, maintenance history, and warranty information. By having this information readily available, organizations can ensure that they are properly maintaining their assets and avoiding costly repairs or replacements due to neglect or improper maintenance. For example, a hospital can track the usage of its medical equipment and prevent breakdowns by scheduling preventive maintenance regularly.
Increased Productivity
You can automate routine tasks, such as scheduling maintenance or tracking work orders, which can save time and increase productivity with maintenance management software. By eliminating manual processes, organizations can reduce the number of hours spent on administrative tasks, allowing employees to focus on more critical tasks that generate revenue. For example, a university can automate room scheduling for classes and events, and the staff can focus on delivering quality education.
Reduced Energy Costs
Facility energy management software can help organizations monitor and optimize energy usage, resulting in reduced energy costs. By monitoring energy usage in real-time, businesses can identify areas of high consumption and make changes to reduce usage, such as adjusting temperature settings or turning off lights in unoccupied rooms. For example, a hotel can use occupancy sensors to control room lighting, reducing energy consumption when rooms are vacant.
Improved Compliance
Facility management software can ensure that your company is compliant with industry regulations and standards, reducing the risk of fines or legal action. By providing a centralized location for compliance documentation, organizations can quickly access and review necessary information to maintain compliance. For example, a food processing plant can ensure that its equipment is regularly maintained and cleaned, avoiding contamination and complying with food safety regulations.
Better Financial Management
Facility management software can help your business manage its budgets and reduce costs associated with maintenance and repair activities. By providing real-time data on expenses and budgetary requirements, organizations can make informed decisions about resource allocation and reduce wasteful spending. For example, a property management firm can track expenses associated with maintenance and repairs for its portfolio of properties and plan for future expenses accordingly.
Hence, by investing in facility management software, organizations can improve their bottom line and stay competitive in today’s fast-paced business environment.
When Can You Expect ROI from QuickFMS Facility Management Software?
When implementing a Facility Management Software like QuickFMS, you may expect to see a return on your investment (ROI) within a reasonable time frame. However, the ROI timeline can vary depending on the specific needs and goals of your organization.
Here is an overview of when to expect ROI from QuickFMS Facility Management Software.
Short-Term ROI
Organizations can expect to see short-term ROI from QuickFMS within the first few months of implementation. QuickFMS can help you streamline your company’s facility management processes, reduce downtime, and improve asset utilization, resulting in immediate cost savings. For example, by automating work orders and maintenance schedules, organizations can reduce labor costs and prevent equipment breakdowns that can result in costly repairs. Many of our clients that have implemented facility management software have seen ROI within six months, with some achieving ROI within just three months.
Long-Term ROI
For long-term ROI, we can provide you with valuable data insights that can help you identify areas for improvement and make data-driven decisions that lead to cost savings. For example, by monitoring energy consumption, you will be able to identify areas of high usage and make changes to reduce energy costs. After analyzing the data of some of our clients that have implemented facility management software, we have seen an average of 25% cost savings within three years.
Continuous ROI from Facility Management Software
With our continuous custom optimization of your facility management processes, we can help you identify areas for improvement for business and continuously refine the processes to achieve even greater cost savings. For example, by using data insights to optimize preventive maintenance schedules, organizations can further reduce equipment downtime and repair costs. We have found that organizations that have optimized their facility management processes through our ongoing optimization have seen up to 50% cost savings over five years.
Conclusion on ROI Expectations from Facility Management Software
In today’s competitive business environment, organizations are constantly seeking ways to improve efficiency and reduce costs. Implementing Facility Management Software like QuickFMS can help your organization outcompete others and achieve these goals by streamlining its facility management processes, reducing downtime, and improving asset utilization.
Additionally, as we have seen, the ROI timeline for QuickFMS can vary, with short-term ROI within the first few months and long-term ROI as organizations continue to optimize their processes. What we recommend is to stay patient, keep in touch with your facility manager and continuously monitor your company’s growth by making required changes in your facility management system to experience long-term facility management software ROI.
So, why wait? Request a free demo of our wide range of facility management solutions and take the first step toward streamlining your company’s facility management.
Content Source: Deloitte
Amit Prasad is the founder and managing director of SatNav Technologies and has business interests in a wide range of IT products. SatNav Technologies is an IT products company focusing on cloud based map data products and a pioneer in GPS, FMS & LBS Technologies. The product suite includes SatTracx in-the-field location based solutions and A-mantra in-the-office facilities management solutions. QuickFMS from a-mantra is a cloud based facility management system which enhances organization’s efficiency.