6 ways to drive cost leadership in Facility Management

In nearly every function of a business there are ways to lower costs. The Facility Management department counts one of them.  

Don’t be mistaken. Driving cost leadership in Facility Management, does not have to result in a service quality decrease. Adopting a cost leadership strategy means that you as a cost leader will be more profitable than a competitor at the same price point. How to make this a reality in Facility Management?


Here are a few strategies and best practices you can adopt.

  1. Consolidate suppliers: Reducing the number of suppliers in FM is a proven strategy that can help to lower supply chain cost (fewer suppliers to manage), improve service delivery efficiency through integration and increase your purchasing power as you’ll have more leverage over a supplier.
  2. Focus on employee upskilling: Employee upskilling can secure a better utilisation of existing personnel as employees are able to stand in for each other and lower personnel recruitment costs as one employee can serve multiple functions.
  3. Go green: thinking sustainably is good for both the climate and the bottom line. Starting with adopting energy efficient lightning, reusing old supplies and adjusting air to occupancy can take you far.
  4. Standardise: When a process is standardised across countries and regions it can be repeated at a lower cost as time on “trial and error” is cut out. Standardisation can also improve transparency cross sites, increase knowledge sharing and create economies of scale.
  5. Benchmark FM performance: if cost leadership is to be attained then the Facility Management organisation must know what costs it needs to beat. Benchmarking competitor performance can thus be a good practice to reveal a company’s relative cost position and identify opportunities for improvement.
  6. Embrace technological innovation: Technology can push greater efficiency and help to do more with fewer resources. Manual processes and repetitive tasks can be automated, performance analytics and best practices cross sites can be integrated through cloud computing and sensor technology can make sure that time and effort only is spent when the effort is needed.