The True Cost of Robust Retail Facilities Maintenance
Robust retail facilities maintenance is a must-have in today’s competitive retail landscape. Yet many retailers view facilities maintenance as a black hole of wasted time and money, rather than a valuable business initiative. Why? Because senior executives working to outline maintenance strategies often only consider service costs, and miss out on the larger maintenance picture.
Retail Facilities Maintenance Cost Breakdown
Costs associated with retail facilities maintenance are broken up into two parts: direct and indirect costs. Direct costs like hourly wages, parts and trip charges are typically the only costs taken into consideration as store managers and executives calculate the total cost of ownership for facilities maintenance.
Indirect costs like vendor sourcing, invoice processing and lost sales due to maintenance issues are just as prevalent in determining how much facilities maintenance strategies are costing retailers. Although indirect costs add up, they are often overlooked, making them harder to calculate into total cost of ownership.
Eliminating Indirect Costs for Robust Retail Facilities Maintenance – and Better Business Results
Many retailers are hesitant to implement robust facilities maintenance strategies out of fear of high operating expenses. However, simply evaluating and eliminating indirect costs leads to better facilities maintenance processes and positively impacts the bottom line.
Here are three ideas for facility cost reduction:
- Lessen maintenance responsibilities for store managers. When store managers are involved with work orders and maintenance-related issues, they lose time that they could be spending on improving customer experiences. Retailers have better facilities maintenance ROI when store managers aren’t constantly occupied with work orders.
- Reduce invoice processing time. According to an AP study, the average cost for most organizations to process a single work order or invoice is $25. Not only does this negatively impact the bottom line, but invoice processing is usually done in place of other important management services. Reducing invoice processing time is a quick way to cut operating costs and increase time for other tasks.
- Eliminate unnecessary work orders. Several businesses dispatch work orders for maintenance issues that are solved with a simple fix, resulting in trip charges and hourly rates that quickly add up. Research from SMS Assist reveals that eliminating unnecessary work orders reduces facilities maintenance expenses by 20 percent annually.
Valuable Retail Facilities Maintenance Strategies
At SMS Assist, we understand the true cost of robust retail facilities maintenance. Our value-driven model supported by an innovative technology platform reduces maintenance-related costs, eliminates complexities and drives speedy work order resolution.
We connect businesses with professionals – or Affiliates – equipped to handle retail facilities maintenance responsibilities, freeing up store owners and managers to focus on more value-added business initiatives.
To learn more about robust retail facilities maintenance and how expenses affect the bottom line, download our white paper, “How to Calculate the True Cost of Facilities Maintenance” today.