Reduced total cost ownership in energy management and facilities activities derives from overhead cost-cutting measures possible through modern smart building solutions.
Uncovering your organization’s total cost ownership in energy management might seem challenging and stressful, but it can boost your bottom line. An effective facilities management system allows companies to optimize assets and prepare for the next best technology or system, reports Emily Rabin of GreenBiz. However, your company needs to understand how total cost ownership in energy management translates into better profitability first.
Total Cost Ownership in Energy Management Reduces Procurement Costs
Total cost ownership in energy management has a direct impact on your company’s overall procurement costs. Procurement costs can include much more than just the physical supplies needed to function. They include the resources needed to function, like customized equipment or energy resources. By understanding the usage rate, frequency, and efficiency, an energy management system identifies ways to reduce energy procurement costs.
In other words, energy-consumption rates and other smart building metrics can be used to change when systems turn on or off to reduce the overall impact on energy costs. Also, the added level of technology leads to improvements in vendor engagement, ensuring compliance with your company standards and reducing total cost ownership.
In-Depth Facility Assessments Maximize Visibility
The most robust energy management systems lack value if they do not provide visibility and in-depth assessment and monitoring of your assets. Areas that are not in compliance with regulations or company standards cost money, increasing your total cost ownership. However, in-depth facility assessments help prevent premature equipment failure and leverage the power of data to prove value, reports Bruce Wesner of FacilitiesNet. This also helps decrease regulatory risk due to violations, which frees capital for use in other parts of the company or contributing to better profit margins.
Predictive, Preventative Maintenance Scheduling Extends Equipment and Building Use
It is important to consider the impact total cost ownership in energy management has on per-asset management and maintenance. Expensive equipment represents a significant investment and risk in business. However, predictive, preventative maintenance scheduling effectively extends equipment life expectancy and building usability. In other words, your company can continue operating in the same space without facing rising maintenance costs.
Increased Productivity Leads to Long-Term Profitability Without Cost-Cutting Among Products, Services or Salaries
Increased visibility and accountability, as well as better use of resources, lead to increases in productivity among your employees. This increases long-term profitability without unnecessary cost cuts.
For example, the value of total cost ownership in energy management and facilities is exhibited by maximizing the productivity of each staff member and reducing the expenses incurred while working. Thus, overall profitability increases without decreasing personnel, wages or price points.
Sustainable Facility Management Practices Are Pre-Requisites to Future Upgrades and Tech
A final consideration in how total cost ownership in energy management and facilities increases profitability focuses on the growing outcry for sustainable practices in buildings explains Greg Zimmerman of FacilitiesNet.
Future innovations and standards in smart building technology will be built on the latest types of technology available today. In other words, businesses must adopt sustainable, smart building technology to ensure their systems align with the expectations of the next smart building revolution, accommodating the needs of tomorrow’s consumers and regulatory agencies.
Reduce Your Company’s Total Cost Ownership by Implementing Innovative, Smart Building Solutions Today
Leveraging total cost ownership in energy management and facilities maximizes visibility, enables the creation of a preventative maintenance schedule, increases productivity and ensures compliance and readiness for future upgrades. Your organization needs to implement an innovative, smart building solutions today, which will reduce your company’s total cost ownership and drive profitability.
Editor's Note: Today's guest blog is from a smart building solutions company, Entouch Controls.