Managing Linen and Laundry costs
This week I want to review and provide solid strategies that will help you manage Linen and Laundry costs. Now that we have changed our linen provider it is a great time to revisit your true linen needs
Linen costs can grow significantly if they are not managed correctly. As owners of your business you should always verify what is picked up and dropped off from the Linen driver. When your driver arrives, they typically will drop off linen that is based on a par level of inventory of every item used by your community that is set by you. Additionally, the driver will pick up all soiled linens. Most linen companies do not count each table cloth, napkin or other linen items when they are returned, rather they are weighed back at the Linen depot. If the weight is off you could be charged for “replacement” linens on a weekly basis which may not be accurate. Think of the self-checkout lanes with scanners in your local grocery store where each item scanned has a pre-programmed weight for every item.
Frequently, your inventory amounts may change based on your true need. Here are a few strategies to keep linen costs in line:
· Set inventory of each item to 5% more than you would typically need
· If your inventory is too high your costs will be high and your replacement liability could also be inaccurate
· Determine if you truly need to use bar towels as they are expensive
· Utilize “bulk rags” whenever possible as they are charged by the bag and not by the item and typically bulk rags would not have a replacement
· Carry a “universal size cloth for your tables when possible
· If you use laundered aprons this is a luxury and can be expensive, be sure to keep accurate inventories of what your true need is
· Avoid carrying specialty linens and sizes on your inventory as you should order those as needed.
· Work with your driver to have a minimum 2 linen deliveries each week
· Set quarterly reviews with your route manager to insure your standards are being met
· Routinely and un announced, count your linen cloths when they arrive in front of your driver, as drivers have been known to shorten the drops for a number of reasons
· Be sure to request credit immediately if you find an issue with your order
Laundry and Linens have an immediate and direct effect to your bottom line. You could realize an improved bottom line through effectively managing your Laundry and Linen costs.
Kevin J Mclaughlin | Regional Director of Operations