Monitoring and Managing Cleaning supplies in your Community
This week we will be reviewing key components of managing your chemical costs
Typically, chemical costs should not exceed 1.5% of your revenues. For example, you can take you prior months actual revenues and multiply that number by 1.5%. The total that appears can be used to compare to your actual cleaning supplies for that same month. If the number is greater than what it should be you could have a serious chemical cost issue which will only erode PBO.
Example
Period 7 actual revenues posted at $78,000, multiplied by 1.5% = $1170.00. Your actual chemical expense for period 7 posts at $1345.00. A difference of $175 or an increase of 1.75% which is .25% over the max amount of what your chemical should be ruining.
The formula for checking
Revenues multiplied by 1.5% = optimum target for Cleaning supplies
As we get ready to enter the final quarter of the 2015 Financial year, it is a good idea to complete the following. These suggestions are essential and truly something that should be done routinely, and not less than quarterly;
· Contact your Ecolab Representative to insure that all of your cleaning systems are operating correctly, dispensing higher amounts of chemicals is very costly and when un controlled can really add up waste and higher expense to your community
· While your Ecolab representative is on site, ask them if you have the most efficient chemical dispensing system for your specific account. Frequently systems become outdated and typically like anything that ages do not perform as they were intended when they were new.
· Check water temperatures from your dish machine regularly (daily as logged). Many chemicals are dispensed or dissolved based on water temperatures. If your system is not hitting the wash and rinse temperatures, you could be losing valuable $$$ which fall directly to the bottom line
· Keep test strips readily available and insure that they are within use by dates for accurate temp testing
· In service all staff monthly on the importance of using all chemicals and the importance of following specific directions as “how much” to use and what the standards are for PPM of solutions for sanitizer and detergents
· Do not overstock chemicals, frequently it may seem easier to order chemicals once monthly. The reality is that you may not truly know your consumption if you follow this rule. While many accounts run somewhat consistently with dish and ware washing there is always room for error.
· Chemicals are very expensive and it is important to only keep what you need on hand. Twice monthly could save you money
· Keep an accurate inventory on hand both quantities and $$$ amounts at all times to insure consistency between inventories
Remember that every improvement to your operation drives improved financial operating performance.
Kevin J Mclaughlin | Regional Director of Operations