Cost Saving Opportunities Every Property Manager Should Use

A property manager’s first move when balancing the annual budget is to look into the “Property, Plant and Equipment” (PPE) line on the balance sheet. Today, savvy decision makers are realizing that proactively managing their resources will result in dramatic capital savings. A proactive approach to property management will also increase the organization’s Return On Investment (ROI) (and other financial measures). Briefly stated, ROIs determine how well organizations use their budgeted funds to accomplish management goals.

The following is a list of cost saving opportunities property managers can leverage in their asset inventory

Asset Management Cost Savings Opportunities

  • Reduced capital and expense purchases
  • Reduced depreciation expense
  • Reduced property insurance costs
  • Increase to cash from the sale of excess idle equipment
  • Reduction to repair and calibration expenses
  • Reduced outsourcing costs for equipment calibration and maintenance
  • Reduction in materials and parts to support test equipment
  • Reduced sales and property/personal property tax
  • Reduced Purchase Order processing costs
  • Reduced interest expenses
  • Reduced inventory expenses
  • Reduced warehouse facilities square footage and costs
  • Reduced acquisition and sales costs
  • Reduced calibration and maintenance facilities square footage and costs
  • Eliminated emergency lease requests and expensive lease payments
  • Reduced production stoppage risk by ensuring the right assets will be in place where/when needed

To realize these cost-saving results, organizations need to have asset management systems in place which provide total asset visibility across the entire organization. In many cases, this means a transitioning from a philosophy based on dozens of separate, non-integrated systems into a single solution that integrates all business functions – from operations to finance and property management.

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