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3 Ways to Quantify the ROI of Your CMMS

Jun 24, 2024 | Public | 0 comments

Facilities management is no longer just about keeping the lights on. Today’s facilities managers have a seat at the table, contributing directly to business success. They’re responsible not only for maintaining buildings and ensuring smooth operations, but also for making strategic decisions that impact business growth and revenue.

Facilities managers are tasked with optimizing costs through efficient resource management, leveraging data to drive improvements, and ensuring compliance with regulatory standards. This new era demands a modern approach, and computerized maintenance management system (CMMS) technologies must rise to the challenge.

Connecting CMMS to Tangible ROI

In today’s demanding environment, it’s not enough for a CMMS to simply track work orders and assets. It needs to actively contribute to cost reduction and return on investment (ROI). This means automating workflows, providing real-time portfolio-wide visibility, and consolidating operations data for pattern identification and actionable insights. This empowers you to efficiently manage your buildings, make informed decisions about resource allocation, and identify areas for cost savings and improved profitability. Let’s explore how a modern CMMS can deliver tangible cost savings in three key business areas:

1. Cut Operational Costs

Imagine a CMMS that streamlines your entire work order process: service requests automatically convert into work orders, ensuring timely responses, and fault detection systems are seamlessly integrated, flagging critical issues in real-time. This proactive approach, powered by automated workflows and condition-based monitoring, minimizes downtime and keeps your facilities running smoothly. Take the example of a leading London-based integrated facilities management firm that recently implemented a modern unified CMMS platform. The company’s 12-person FM team was able to reduce daily work order processing time in half from six hours to three, saving 780 hours annually. That’s valuable time freed up to focus on strategic initiatives and drive greater efficiency across the board.

2. Eliminate Unnecessary Integration Costs

A CMMS that seamlessly integrates with building management systems (BMS), HVAC systems, sensors, and meters, all within one platform, means you no longer have to pay for third-party integrators to make different tools work together. Many facilities managers find themselves juggling a patchwork of different software solutions, leading to extra subscription costs and data silos that hinder efficiency. Consolidating these functions into one platform can reduce costs and provide a single source of truth. For example, an FM team might spend anywhere up to $12,000 annually on separate subscriptions for work order automation, energy management, vendor management, and other functions. A unified CMMS platform with all these functionalities built in can eliminate additional subscription costs and also enhance efficiency by preventing miscommunication and unnecessary delays.

3. Short Time-to-Value, along with Built-in Scalability

While traditional CMMS solutions may take anywhere between six to 12 months to be deployed, a modern connected CMMS cloud platform could be set up and ready for use within a couple of months. Most FM teams who have switched to such a cloud platform begin to see tangible value right from day one of using the platform. Additional fees for customization and advanced/new features is yet another downside of a legacy CMMS system. A no-code/low-code environment where FM teams can build or customize workflows as and when needed saves time and money, adding up to the overall ROI. Scalability, too, should be built into a CMMS platform. As the FM team grows and their requirements evolve, the CMMS should adapt seamlessly, supporting increased workload without compromising efficiency.

Clinging to outdated CMMS solutions in today’s competitive landscape is no longer a sustainable option. Ambitious FM teams looking to scale rapidly should consider a modern approach that goes beyond basic functionality, integrating all FM needs into a single platform. Adopting a connected CMMS can align all three pillars of operations— people, processes, and systems—to work together in unison. This streamlined approach can translate into tangible cost savings, freeing up resources for strategic initiatives and boosting the bottom line.

Raj Subramanian is chief product officer and co-founder of proptech company Facilio.

The post 3 Ways to Quantify the ROI of Your CMMS appeared first on Facilities Management Advisor.

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