Case Study for Cost Avoidance
I’d like to take you inside of one of our past projects where the owner immediately saved over $7,500 nearly recovering the cost of the bar code inventory project.
We were contacted and subsequently contracted to conduct an inventory in a student housing complex near SUNY Binghamton which was comprised of 8 buildings and 96 apartments. The University had been managing but had let slide to the point the owner took back and was investing considerable dollars to bring back to good living conditions for students.
I learned quickly the students were not big on housekeeping, since some time was spent on our knees bar code tagging some of the furniture items, should have issued knee pads.
While reviewing our report with the owner, he made a request for his project manager to purchase 25 additional coffee tables at the cost of $300 each for the newly renovated units. I interrupted their conversation and showed the owner where he had 30 of the new tables in storage and long forgotten. As stated, a cost avoidance of $7,500. The savings were important but what was more important to the owner was that he now had a tool, a report by building and room, which was used to hold each tenant responsible for all the contents of each room.
Each new tenant agreed and signed off on contents upon lease agreement. What was different from original agreement on departure, the student was held responsible and charged for the loss. The owner saw this as a step to prevent loss going into the future.
Now we all do not manage student housing facilities, but in your facilities position, have you purchased new items where, somewhere in your company or organization there probably are new items setting in a corner, closet or storage unused ready to be put into service? When as a facility manager at a large corporation, I was often guilty of buying new because there was no way to locate unused or underutilized equipment.
Today, Centennial Associates exists because we have developed this unique niche helping others get their ducks in a row. Find out what your company owns, where it’s located and if ready to be reused. Your cost avoidance saving could be this $7,500 or in the tens of thousands or even hundreds of thousands. Contact us today for a free consultation to discuss options for your company. Call 585-671-0544. www.cenetnnialassociates.com
Norm Mistal, President