When cost-saving tactics derail efficiency in facilities management

Facilities Manager Looks at Tablet

When facilities management (FM) teams set low not-to-exceed (NTE) limits for work orders, they protect against overpricing—but that also invites a stream of daily interruptions for reviewing quotes priced above the NTE threshold.

Low NTEs can create bottlenecks and halt the work order process until the quote is approved or denied. Meanwhile, on-site service providers, with limited time to wait for a response to the quote, end up moving on to their next job. If the quote is approved—which is common—there will be an extra trip charge when the service provider returns to complete the work. No time or money is saved.

A computerized maintenance management system (CMMS) automates and streamlines workflows. If you’re interrupting your daily work schedule—possibly multiple times a day—to review quotes, you’re not capitalizing on the efficiency of your CMMS.

The Smart NTE algorithm in the Corrigo CMMS automatically sets market-driven NTEs informed by thousands of transactions for a specific region and type of work order. NTEs that align with market costs prevent overspending and give FM teams control for reviewing the exceptions. Fewer interruptions leave more time for taking advantage of advanced CMMS features, such as analytics and insights, that drive higher performance.

Saving money can sometimes cost money

Another cost-saving measure, focusing on rate cards—which specify a service provider’s hourly rates—can also lead to diminishing returns. A $40/hour vendor may look like a deal compared to an $80/hour vendor. But if the former never bills for less than two hours, there is no deal. The number of hours worked can be manipulated.

A more effective cost- and time-saving strategy would be to compare a vendor’s total cost to the market average. Corrigo, for example, tracks transaction costs and updates its database in real time, making vendor comparisons relevant and timely. Released from the rate-card obsession, FM teams can focus on higher-priority work.

Outsourcing for saving time and money

Many FM teams are currently understaffed due to layoffs and furloughs related to COVID-19. Time and resources are at a premium as work orders and expectations return to pre-pandemic levels. To maximize time and budgets, FM teams must increase efficiency using CMMS automation to accelerate manual processes.

Some tasks, however, like creating or expanding a vendor network, are time-intensive and not easily automated. In this case, a viable option for busy FM teams would be outsourced, managed services. Let others handle the time-consuming but important tasks that impede FM performance.

Corrigo Managed Services provides seasoned FM professionals with hands-on experience in the restaurant, retail, banking, and healthcare industries. They’re skilled in executing essential, often laborious tasks such as:

  • Sourcing, vetting, and managing vendors
  • Invoicing and payments
  • Optimizing NTEs, service-level agreements, rate cards, and scorecards
  • Using best practices to configure your CMMS and thus optimize daily FM processes
  • Training new members of the FM team

Managed services save time by freeing up FM teams for more advanced or complex operations. Capitalizing on the experience of longtime FM pros is less expensive than hiring full-time employees.

The JLL Technologies (JLLT) webinar, “Staying Ahead of the Labor and Resource Curve with Corrigo Managed Services,” presents the strategic features of managed services programs. Discover the benefits for your FM team with our on-demand webinar recording.