3 Ways CMMS Software Saves Businesses Money

By Daniel Golub, GM Hippo CMMS

It’s a challenge that every business will face. A specific predicament that any company who’s committed to their mandate will eventually meet, at some point in their existence. Two, decades-old questions that, sooner or later, every operation finds itself asking: 

  1. How can we reduce costs without cutting corners?  
  2. How can we make our business operations more efficient and streamlined? 

Maintenance is an undeniably vital — though often overlooked — element to the success of any company. Most often, maintenance management is left in the hands of a crew that operates in accordance with the random order the requests are received. Manpower, though time-tested and mostly reliable, is good enough to get the job done. But determining what job should be next, when it should be done, and how best to execute it takes time and expertise, which always cut into budgets. 

HippoCMMS blog post on Better Buys

This is where CMMS (Computerized Maintenance Management Software) comes in handy. CMMS systems are essentially advanced, intuitive software packages that utilize a computer database rife with essential information about an organization’s maintenance operations. 

As it stands, most maintenance teams complete their tasks using a first-come-first-serve. Tasks are tackled in the order of which the requests are received. The first-come-first-serve approach is simple and easy to implement but it neglects important variables like priority, cost, available staff and resources, completion time and needed materials. Being able to create and follow a clear-cut priority list that takes into account time, resources, cost and results is a tremendous benefit to a business.  

A well-designed CMMS does just that and will save your company bundles of money in the process.  

Key features in a CMMS typically include work order management, preventive and predictive maintenance, equipment management, inventory management, purchasing and requisition, and maintenance reports. Some CMMS systems also address facilities management tools for utility tracking, capital budget planning, project management and asset condition reporting.  

The data generated in CMMS software is intended to help maintenance and facilities professionals do their jobs more effectively, lower costs, boost productivity and even make the workplace safer. 

So, how does a CMMS actually save your business big bucks? Here are three significant cost-saving ways Computerized Maintenance Management Software can help you keep your coins and increase your profits: 

  1. Extendthe Life of Equipment through Preventive Maintenance  

Let’s start with two obvious facts: Purchasing new equipment is expensive, and repairing neglected equipment isn’t cheap either. Therefore, when looking at the big picture, it’s essential to make sure your company is taking extra care to get the longest lifespan out of existing equipment.

Key drivers for businesses implementing a maintenance management system are the preventive maintenance features they offer. Having a solid preventive maintenance plan in place extends the life of equipment, reduces downtime and minimizes equipment failures. It is also far less costly when compared to unplanned reactive maintenance (waiting for equipment to break).

Monitoring equipment extends its life.

In a survey of more than 900 maintenance and facilities professionals, Hippo CMMS found that preventive maintenance was the most important feature maintenance professionals sought when evaluating various systems. Having a program that can distinguish between repair or replace sets you up for savings.   

If you’ve already selected a proven CMMS, you know you have purchased a superior solution that allows your company to make data-driven decisions regarding the care of critical equipment, which saves you money in the long run by keeping repair and replacement costs down. 

  1. Keeps Good Tabs on Inventory 

Another key benefit CMMS offers maintenance professionals is better inventory management. Often businesses require spare parts on hand and can’t afford downtime if parts are not available. The problem? This often leads to carrying too much inventory, which leads to parts’ depreciation and disappearance (from poor tracking or theft).

HippoCMMS guest blog on Better Buys

A CMMS tracks parts inventory.

CMMS systems empower managers through real-time notifications when parts are needed or when they have reached critical stock levels, thus streamlining the purchase and ordering process. Furthermore, many CMMS systems come equipped with bar-code scanning, inventory reporting, single-click supplier info and more capabilities.

With a poor or imbalanced inventory, it’s quite challenging to repair critical assets in a timely fashion. If managing spare parts and other inventory is essential for your business and operations, CMMS software ensures that the right materials are available at the right time and quickly retrieved. 

  1. Promises and Delivers Productivity

Everyone knows that productivity saves money. Less wasted time means more potential tapped. But how can implementing a CMMS increase a company’s productivity and increase its bottom line?

A CMMS increases productivity.

By adopting a CMMS, you can drastically reduce downtime and help the company make calculated, educated maintenance decisions instead of doling out reactive tasks based on dire need or guesswork, alone. Preventive maintenance schedules and reduced worker downtime are key to boosting productivity. But how can a CMMS help with these?  

First, by leveraging a CMMS’ advanced scheduling tools, your business closes otherwise gaping chasms in daily maintenance activities. Second, by lessening the time it takes to manually assemble reports and KPIs, managers and workers can free dozens of hours each month to address more pressing tasks. Third, data entry — every company’s biggest time-suck, and every employee’s least favorite task — is entirely automated by a CMMS.

At this point you’re asking yourself, “Why haven’t I already invested in a CMMS?” 

Consider: it requires – Yes! – an investment! Both in time and money. Proper on-boarding of users takes sufficient time. The cost of a CMMS is also a cause for pause and deliberation.

Calculating an approximate ROI of a CMMS is one way to justify the cost of investment in a CMMS. An online ROI calculator can help illuminate how a CMMS will trim costs and boost productivity, while saving your company time and money. Once you take all things into consideration, you’ll find the payoff of a CMMS implementation is immense and measurable. 

So, perform due diligence. Investigate how a specific CMMS will boost your bottom line and guarantee a solid return on investment. If there are two things that every company cares about, it’s saving money and increasing profits. 

A CMMS does both.

Daniel Golub is the General Manager at Hippo CMMS. He has worked with the company since 2011. He has an MBA in International Marketing and has worked in the software industry for more than 10 years.

Compare Top CMMS Vendors

Choosing a CMMS vendor is all about finding the right fit. Use our 2017 Vendor Comparison Guide to get an objective look at the top solutions.Download Now


  1. Florence Welch says

    It sure is interesting to know that CMMS software ensures productivity by reducing downtimes and help the company make educated decisions to maximize efficiency. I think having a preventive maintenance CMMS software is beneficial for companies who want to have an automated system that would enable them to close the gap in maintenance activities and work. I’ll be sure to share this with friends who might be interested in setting up a business in the future and employ the use of CMMS software.

Speak Your Mind