white papers_

Total Cost of Ownership

Make a greater impact through better asset management

If you’re in Facilities Management, you’re doing asset management and planning for capital replacement spending – not just fixing things.

If you’re using Total Cost of Ownership to make those asset and budget planning decisions, you’re among the top 5% of your industry who are making the best possible use of your limited dollars. Not just waiting for things to break.

Replace assets at the right time

Run-to-fail, a common facilities and equipment maintenance strategy, leaks money in 3 critical areas:

  • Brand Experience
  • Operational Interruptions
  • Financial Outcomes

In some businesses, run-to-fail can also create safety and compliance issues.

There is another way, with ROI proven by facilities managers managing sizeable portfolios: Total Cost of Ownership (TCO).

Asset management = Control of spend

Facilities spend is ultimately controlled by one thing: Assets. Specifically, how needy each asset is.

When you’re managing a lot of equipment in a lot of properties, you’re not always going to remember that RTU #3 always seems to be the problem at Location #252.

Total Cost of Ownership calculations tell you when to replace your key assets–before they start costing more to fix than to replace.

Asset management means more than repair history

In real world facilities management, significant asset management decisions involve tradeoffs to strike the right balance in many areas, including:

  • Repair expense vs capital purchases
  • Reactive repairs vs proactive PM (preventive maintenance)
  • Operational uptime vs scheduled downtime vs operational interruptions when assets fail.
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