If you’ve shopped for groceries at big warehouse stores, like Sam’s Club or Costco, you have witnessed firsthand the power of collective purchasing and volume discounts.
Many building owners believe the value of an optimized procurement program is reducing costs—and while that’s very true, it’s only part of a bigger picture. Realized savings on every purchase can actually help you increase the value of your property.
That’s why we wanted to share five ways that you can maximize your cost savings and your property value:
Business owners often have to walk a tightrope. On the one hand, they need to constantly try and find ways to cut back on spending to achieve their organizations profitable goals, but they also have to do it in a way that doesn’t affect services levels and performance. While quite a few methods of cost-cutting are available, procurement savings are one of the easiest ways to slash operating costs. A well-thought-out procurement plan can save hundreds of thousands of dollars annually for a mid-sized organization, improve supplier terms, and bring long-term cost stability.
How can your business reduce costs associated with building maintenance?
One of the most important factors in skillful contract negotiation is obtaining the biggest discounts possible. If you’re a building owner, this not only reduces your expenses, it also increases your building’s market value. If you’re a property manager, these savings will not only make the building owner happy but some of these cost savings might be passed along to tenants or residents.
You may have heard about the new increased trade tariffs being imposed on Chinese goods, but if you’re like most people, you’ve been waiting to see what materializes before paying attention to all the details.
While things are still in flux, this week will be pivotal in determining whether the current 10% tariff on Chinese goods, which took effect in September 2018, will be raised to 25%. Regardless, we’re already starting to see the effects of the earlier tariffs, which have been placed on billions of dollars worth of imports. So, what does that mean for American business owners and, particularly, for supply chain and procurement execs maintaining their building portfolios? More than you’d think.
Do you want to realize a 10-25% savings on your building maintenance spend?
No problem—you just need to verify your employees or service providers performing your MRO (maintenance, repair, and operations) are in compliance with your procurement goals and objectives.
Managing tail spend is one of the only guaranteed ways property managers, building owners and contractors can reduce costs associated with building maintenance. But what is tail spend and how do you manage it?
Sometimes, it feels as though there is no way to further cut costs, but here’s the good news: a quick review of your spending trends can help you discover new ways to get your finances in order. If you’re a building owner concerned about controlling expenses, monitoring just a few carefully chosen key metrics around building-related MRO (maintenance, repair and operations) will help you figure out where you can cut costs while improving your procurement efforts.