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Identifying Cost Savings
While there are exceptions, in most cases the EMIS will not provide direct cash inflows into the organization. Therefore all quantitative financial value must be based on cost savings the system will bring to the company. Cost savings items can be taken from your cost benefit analysis. Below are some of the many examples of costs savings associated with the implementation of certain modules as part of a structured EHS management program.
REPORT GENERATION
One of the primary drivers for implementing a new system of any kind is the time savings that the system will bring. A major source of savings is the reduced time employees and managers will spend creating EHS reports. By using the advanced reporting capabilities of the system, users can reduce the time creating reports from many hours down to a few minutes. For example, if only two employees earning $50,000 a year reduced the number of hours that they spend creating reports by 10 hours a week the organization would realize a cost savings of $25,000.
REDUCED TRAVEL EXPENSES
Because global EHS management systems can be accessed from any Internet connection, management of programs can be done remotely, removing some of the need for travel. Administrators at the corporate level can easily create programs, action plans, regulatory compliance requirements or tasks, as well as audit templates for local managers to use at any facility. In addition, the corporate EHS managers can monitor users’ progress on completing audits, creating and implementing action plans, corrective actions, compliance activities and closing incident investigations remotely. While this will not completely replace the need for corporate EHS managers to travel, using the tools in the system to reduce travel by even 20% can save tens or hundreds of thousands of dollars depending on the size and geographic distribution of the organization.
INJURY LOSS PREVENTION
The incident management module has proven to be an effective tool to be used in organization wide safety programs. The ability to respond quickly to incidents, preventing recurrence across the company or spotting and eliminating risks by managing near misses and hazard identifications through the system before a loss occurs has proven to be an effective way to reduce incidents over time. In fact it is not unusual to see a year over year decrease of more than 50% in recordable injuries at organizations using an incident management system in conjunction with a focus on safety culture. The chart below shows an actual example of declining injury rates over the life of an implementation.
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