Facilities management is a profession that works as a backbone for any organisation, the whole concept of facility management is around the need and supply chain management, the basic requirements of the company and employees is under the facility management, the task includes everything from functional operations to administrative operations. Facility managers are responsible for the undertaking of these activities and making it certain that the firm is on a gentle run. Ensuring the growth and development of the company, facility managers are hired for better and efficient management of facilities. They work through different challenges to ensure cost effectiveness and operational efficiency. As per the statics, facility management in any company can help the company with a energy cost reduction by 20% and productivity rise by 20% which makes it an industry of $1,260.36 billion that is expected to rise to $1,856.44 billion by 2029, that clearly shows the importance of facility management and managers. Ergo, while running a such huge business, facility management faces certain challenges that includes issues like:

Cost control:
Cost control is an issue when it comes to dealing with important resources within the budget crunch.

Coordination:
Communication is the key, but handling a big firm providing instructions single-handedly is practically a challenging task at times.

Time Management:
Managing tasks while multitasking without any external help is another major challenge.

Energy Management:
It is the sub-part of cost management. Cutting down the excess use can be considered.

Handling Vendors:
Maintaining the vendors and technicians associated with the company for long term and in budget unassisted.

These are the most common challenges faced during facility management by the facility managers. In this specific blog spot we will be clearly discussing cost management
thoroughly and the solutions to it.

Why is Cost Management a challenge for facility managers and management?

The facility managers are provided with an unquestionable budget, all the expenses have to be done within the defined expense standards. The professional has to deal with multiple crucial tasks including ordering stacks of necessary items, etc.

The total defined budget at times can fluctuate due to unforeseen issues that occur, this may or may not be due to unreliable, off target reports that creates hassle, leading to a sudden and unavoidable expense; Incompetent systems or devices which requires a thorough testing; and many more. Managing the budget and completing the wants requires a detailed research and analysis of the subject and ensures cost cutting.

There exist different areas where the cost distribution happens, it includes: Labour cost, material cost, and energy. Energy management is an efficient way to deal with energy reduction that in turn helps one with cost reduction. The significant rise seen in commercial electricity, the solutions to these problems are numerous, they vary differently, switching to technological solutions, reusing the elements, etc. A frequently heard term that is buzzing around is insourcing the candidate for cost efficiency.

But what is insourcing? Is it really cost effective? What cons and pros come along with insourcing candidates?

Insourcing is integrating the skills of an individual in the team that was previously done by a third party. It is an effective way that allows you full control and fits your needs. Insourcing a team can definitely have certain perks but it is not cost efficient.

The fact that an insourcing candidate works on the company’s payroll and is impanelled inhouse, the company has to pay the insource candidate on monthly basis besides, the company has to provide the candidate with facilities like sick leaves, monthly holidays, etc. It might push the labour cost. Hiring employees can be time consuming and costly.

Conclusion:

Facility management comes with numerous micro and macro responsibilities, and with major responsibilities comes major challenges. These challenges can be anything cost management, energy management or any issues related to operational management.

This blog thoroughly discussed common challenges, majorly cost control. Since, it is frequently heard that insourcing can reduce the cost of consumption, but it has proved to be a myth on the other hand it can be a cause of the increased budget. Ergo, insourcing is not a solution to cost control during facility management.