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April 11, 2013

CHICAGO — Seminars on linen loss, healthcare regs, service contracts, and certification programs garnering most pre-show interest

CHICAGO — More than 70% of respondents to this month’s American Laundry News Wire survey say they are OK with the Clean Show’s shortened three-day schedule this year, compared to the remaining 29.4% who are “indifferent about this change.”

One respondent proposed that the biennial convention be held “every five years,” but with a longer schedule. “Have mandatory attendance by all members, companies and organizations,” the respondent writes. “Have it for a full five-day week with...golf tournaments planned and social events for all in the evenings.”

In fact, a good number of respondents answered that the biggest factor in favor of visiting New Orleans for Clean was the “networking and socializing” opportunities (23.5%), while 11.8% favored the “exhibits of equipment and supplies.” Equal shares of 5.9% pointed to “educational sessions” and “combining business and pleasure.” The most popular response, however, was “all of the above” (52.9%).

The Association for Linen Management (ALM) and the Textile Rental Services Association (TRSA) are among the organizations hosting educational sessions during the June 20-22 show. Among ALM’s scheduled offerings, Reducing the Loss of Patient Linen and Scrubs and Standards and Regulations Affecting the Healthcare Laundry and Linen Industry have drawn the most pre-show interest among respondents. As for planned TRSA sessions, Textile Services Contracts and Negotiations and TRSA Clean Green and Hygienically Clean Certification Programs: Quantifying Your Commitment to Cleanliness and Sustainability are most anticipated.

More than one-third (35.3%) of those surveyed say they are planning to attend Clean, while 17.6% remain unsure. The remaining 47% aren’t planning to attend, with cost playing an important factor for some.

Among respondents who are not attending, about 45% “can’t afford the cost,” 27.3% “can’t spare the time,” and 27.3% said they “made other plans.”

“Employers do not give the time to attend seminars or trade shows,” writes one respondent. “We have to use vacation time to attend. In the past, employers would pay for employees to attend. Now, it comes out of our own pocket.”

While American Laundry News’ Wire survey presents a snapshot of the audience’s viewpoints at a particular moment, it should not be considered scientific. Subscribers to Wire e-mails—distributed twice weekly—are invited to participate in an industry survey each month. The survey is conducted online via a partner website, and is developed so it can be completed in less than 10 minutes.

All managers and administrators of institutional/OPL, cooperative, commercial and industrial laundries are encouraged to participate, as a greater number of responses will help to better define operator opinions and industry trends.

November 21, 2012

CHICAGO — Input from chemicals supply, linen supply, uniforms/workwear manufacturing, and healthcare laundry sectors

CHEMICALS SUPPLY: MARLENE WILLIAMS, ANDERSON CHEMICAL CO., LITCHFIELD, MINN.

Sound business sense requires a review of new-business cost vs. return on investment. The balance sheet for new textile services would include costs of marlene williamscustomer needs for equipment, level of service expertise, and frequency of service required to provide good-quality product and customer satisfaction. These costs should be balanced against the profits generated by anticipated product sales.

Other factors may enter into an unbalanced, but desirable equation. These would include anticipated increased future sales, entry into non-textile products offered by your company, transportation or delivery logistics, and numerous account-specific exceptions.

stephen marcqLINEN SUPPLY: STEPHEN MARCQ, GENERAL LINEN SERVICE, SOMERSWORTH, N.H.

I like to think of this as two separate questions, the “what” vs. the “where.” Does the account make sense on its own merits, and then does it make sense to send a truck there?

On the “what” side, consider the following:

  • Profitability/pricing — Does this account fit into your overall growth strategy?
  • Your target markets, and the account’s prominence in it. Name recognition can help your sales team’s ability to gain other business in that market segment.
  • Are the delivery and billing parameters compatible with your company requirements? If they are so different that they affect your ability to provide good quality and service, you may want to avoid it. Better to not start what you know you can’t do well.
  • If margins are low, are there other compelling reasons—name recognition, contribution to overhead, etc.—to do it? It can make sense to service accounts selectively that don’t make economic sense in and of themselves. Nothing occurs in a vacuum.
  • Consider the competitive ramifications of taking or not taking the new business, i.e. strategy over profitability. You may not want it, but that may be outweighed by how much you may want your competitor to not get it.

On the “where” side, a common concern comes up when you are presented with an opportunity to service an account in a more distant area, or one you are not in. I like to consider the following:

  • Estimated account revenue — The economics of traveling improve with account revenue, of course, but an unintended consideration is that you could become tied to it. Many companies would consider 10 $200 accounts to be better than one $2,000 account for this reason.
  • Evaluate growth potential in the area. Use a modeling approach for a quick and dirty analysis of your growth potential there, by comparing the number of accounts and/or total revenue per capita for the potential area vs. an existing, better developed one. If you service 30 accounts in a similarly sized town, that should give you an indication of the potential in the one you are considering.
  • Is there any connection between your existing business and this new business? There may be times when you have to service a location to keep an existing customer happy, and prevent any competitive intrusion.

There are definitely times when not serving a new account makes sense, but with new business so hard to come by, it’s better to look for creative ways to get it into the fold. Painful as it may be, if you know an account is just not going to be a good fit, don’t take the business and tell its principals why. Often, there are one or two things that are major concerns, and if the customer wants what you offer badly enough, it might be more willing to negotiate a better outcome.

UNIFORMS/WORKWEAR MANUFACTURING: STEVE KALLENBACH, AMERICAN DAWN, LOS ANGELES, CALIF.

steve kallenbachThere are basic and not-so-basic questions that need to be answered in the area of new business before the final sale. Companies need to decide if they are in a growth mode or a profit or maintenance mode.

Growth modes can drive sales with lower margins, as companies are willing to “buy” certain business to penetrate target markets. That being said, some companies may proactively decide to use low margin pricing in special targeted markets, while maintaining standard, more profitable pricing in other core markets.

Other key questions or criteria to settle when evaluating new, possibly marginally profitable business include:

  • Is the product already part of your core offering or are you adding it to your line? If it’s an additional product, your merchandise cost will be higher (by percentage) until you reach critical mass.
  • What is the customer’s quality/replacement expectation? Does it expect “first wash” perfect visual quality on every delivery, or is the market standard OK?
  • Based on pricing, does the return on investment (ROI) meet your normal standard? Can you get enough turns to pay for the merchandise and all related costs, and still make a profit? You’d be surprised how some pricing programs will analyze if you put them through a life-cycle assessment.
  • What is the contract length? Do you have enough time to “profitize” the account? Is the contract length the same as your other business, or shorter/longer?
  • What are the payment terms, and what is the credit history of the account? You can write the largest account on the planet, but if it doesn’t pay its bills on time, you don’t make money and actually incur hidden costs (carrying its money).
  • Does your plant need more volume in certain product(s) in order to make your operation more efficient? Let’s say you write a good-size account in non-standard new product. The account is great and pays its bill, and the price is decent, so you are making money. But the production and flow is not enough to run full loads, so you have hidden costs in special handling, inefficient loads, or even merchandise wear-out due to less-than-capacity mechanical action.
  • Are the new-business logistics within range of your current business, and can the route handle it efficiently? For instance, you can pick up a high-priced $100 account with standard product, but it’s an hour from any stop. The two-hour turnaround to service this account actually costs you revenue in opportunity loss.
  • Where is the competitor in this scenario? Does taking a piece of business at a lower price keep it out of the area? Does turning down a piece of business at a lower price send a signal to the market that you and your business are about sensible marketing? Does taking a piece of business at a lower price displace a competitor?
  • Are you taking the entire account, or is this piece of business just a portion? Does this smaller piece of business provide you an opportunity to wedge into a competitor’s account?
  • Will the account require normal maintenance or high maintenance, in terms of visitation, entertainment, service levels or other activities? All of these areas are generally overlooked cost drivers.

You should weigh these factors when going after any new business, much less new business with new products in new markets. This is all part of strategic marketing. Especially in new markets with new products, it is company leadership that needs to “run the numbers” to stay profitable.

Yes, there are times when it makes sense to buy business at lower prices, and other times when it’s best to turn and walk away.

HEALTHCARE LAUNDRY: SCOTT BEATON, KAISER PERMANENTE NORTHERN CALIFORNIA

scott beatonMany textile service linen companies use the same basic criteria when evaluating a potential customer relationship. The relationship needs to be fiduciary in order to provide a sustainable valued service to the customer while making a fair profit for the provider. There are a number of key factors to consider when conducting a profitability evaluation for new business including:

Transportation Cost — Due to increasing transportation costs, perhaps the greatest factor to consider is the distance of the client from the processing plant. A service radius should be established with concentric circles emanating for the plant. Special pricing and exceptions can be made for customers that accept fewer deliveries per week and or agree to store additional linen to lessen the “windshield” time involved to service them.

Volume of Potential New Business — How does the potential client fit with your current production flow and product mix? If you are a large COG (customer-owned goods) laundry, it may not be feasible to service smaller accounts due to soil-sort configuration, tunnel load sizes, physical layout, and finishing-equipment capabilities.

Available Product/Linen Inventory — Whether rental or COG, an adequate agreed-upon par level needs to be purchased and maintained.

Production Scheduling — It is vital to consider whether your laundry’s current operation can handle the additional pounds without increasing the number of employees and/or hours of operation. How does it fit into the current schedule? Can it be processed by acquiring additional, more efficient equipment or will you need to hire and train additional labor?

Product Mix — Does the potential client have specialty products and linens that will require more expensive processing and handling? Customers may require that linens be folded and packaged in a particular way. Ensure that the equipment you have can process the linen to the customer’s expectations and needs.

Retention/Satisfaction of Current Customers — There’s nothing wrong with looking at ways to expand your business, but not at the expense of losing existing customers. It is much cheaper to retain customers than to constantly turn them over.

Make sure that you are proactive and maintain the customer service to which your current customer base has become accustomed. When considering expansion and growth, take a long, hard look at your plant’s current operations. Additional volume may allow you to make improvements in equipment and processing, and this could increase your productivity and reduce labor hours in the long term.

Click here for Part 1!

October 23, 2012

CHICAGO — Input from uniforms/workwear manufacturing and chemicals supply

UNIFORMS/WORKWEAR MANUFACTURING: STEVE KALLENBACH, AMERICAN DAWN, LOS ANGELES, CALIF.

steve kallenbachMerchandise control is such a huge area of any processing plant, from choosing the right textile to processing it correctly to getting it back after delivery. Any of these three areas can make or break a laundry, whether you service inside or outside customers!

Product Selection and Placement — Choose the right textile for the application, getting the right product in the right place at the right cost (price).

Buying the cheapest unit-priced product isn’t always the lowest cost. And it isn’t always the best answer for the customer or you. What quality and other attributes do your customers expect, or can separate you from your competition?

What are the positive “wear life” ramifications for your operation? What does an improved product do to your rag-out percentage? As operators, we need to measure true cost and not just textile price. Plus, it is important for you to balance your product selection between marketing and cost issues.

Life-Cycle Costing — This can prove what is right for your operation. If you buy a textile at 30 cents per unit and it has a life of 10 washes, the life-cycle cost is 3 cents per serving. If you buy a textile for 40 cents per unit and it has a life of 20 washes, the life cycle cost is 2 cents per serving. In this example, by spending 30% more on the product, you actually gained 100% servings and your cost is 30% less.

Freight Cost Considerations — This is a huge consideration when looking at cost. And there really is no free lunch.

If your supplier pays the bill, it has to be worked into their cost. Many times, especially in larger metro areas, it is more cost-efficient to cut your own freight deals and pay it yourself. Additionally, consolidating your shipments instead of a lot of small orders can save you a lot of money. This is best handled by buying large put–in buys monthly rather than weekly.

Product Integration — Does it meet or exceed the plant standard? Does the packaging and case pack affect the put-in labor? Does the fabric match your current offering in color, weight and weave? Is it “too good” for the standard, causing the integration period to drive customers to want only your new product?

Processing — Improper soil sorting, chemicals overuse, formula water levels, under-loading, formula time, formula temperatures (heat) or extraction can cause you to inadvertently wear out products prematurely.

Some key results of improper processing are alkaline hydrolysis; shrinkage; redeposition; bleach damage; placket crease; thermal shock; polyester heat damage; excessive linting, pilling or fading; hanger molding; and compression wrinkles.

It is important to work with your product supplier and chemical company in reviewing this issue, as these problems can typically be discovered and solved fairly easily.

Loss and Abuse Recovery — Some companies count their soil, inspect it, and charge for abuse and/or replacement. Other companies don’t count and simply charge an “inventory maintenance fee” to cover average losses.

Answer these two questions: How many pieces are you putting in for inventory maintenance to cover your loads? How many pieces does your loss/abuse revenue (whether direct or in a maintenance charge) cover?

The difference between these two numbers could show you the black hole of missing merchandise. If you are putting in more than you are getting paid for, and you are using the maintenance fee, it would be apparent that one or more of your accounts is abusing the system by either damaging or losing more merchandise than you are recovering through revenue. You may have to isolate these accounts and put them back on a soil count system rather than a maintenance program.

Product Reuse — Most operators do a marvelous job in this area. Examples are using downgraded bar mops for turk towels, dyeing hand towels for automotive cleanup, etc. As you choose products, it is important to consider their “second life.” Otherwise, you must measure your rag-out cost and choose a product and placement that provide the longest life. If you are ragging out products directly from first life to junk, consider a second-tier product.

Facility Security — Flat goods should be held within a fenced “crib,” where only authorized employees can enter. Your backup inventory area should also be secured so that unauthorized personnel cannot get to it. Your stockroom should be secured as well, with only authorized employees allowed within. If you cannot crib your areas, then paint a bold yellow line on the floor.

It’s important to post “Authorized Personnel Only” signs. Cover this issue in your orientation documents and then reinforce your security rules at every employee meeting. Specifically, it should be against company policy for a route person to pull his/her own load or fill his/her own garment orders. It isn’t that route personnel typically “steal” the goods. Many times, uncontrolled merchandise ends up at your customers and they are not billed for it. Any good route person worth his/her salt has extra goods on the street. We just shouldn’t invite this practice.

There must be a proper paper trail in order to control inventories. This means even if a manager is filling a “shortage,” there should be a signed document from a manager one level higher granting authorization. Personally, I would authorize this sort of activity only at the general manager level. All movement of merchandise to and from your operation should be secured with a properly executed inventory control document. Train your plant employees to fill these orders only with proper authorization.

Many operators install video equipment and signage at all exits to monitor all merchandise movement. If this is done thoroughly and talked about in your meetings, employees will be motivated to assist you in merchandise control and understand that this is a high cost.

Put-In Management — Start with any control period (week, month, quarter), and calculate your total starting inventory. Now add organic growth: the invoiced increases in pieces per product, as well as new items added to accounts. Subtract invoiced decreases in pieces by product, as well as item cancellations from accounts. Now subtract your product “down-grades” and “rag-outs” from the mix, by product. The inventory balance is what you should have in stock. If you are still short product to fill your loads, you have identified a “black hole.”

Stockroom Management — Set up visual standards for your grading and establish at least three grades: near new (A), standard (B) and utility (C). Keep new and near-new goods separated from standard goods. If an order comes in for standard goods and cannot be filled, it should not be an easy task to fill with new. Implement a second-level management authorization to fill B grade orders with A grade garments. And if goods need to be ordered, the highest level of management should be in the review/approval cycle.

Route Control — In some cases, shrinkage can occur through theft. But in most cases, shrinkage occurs when extra (free) merchandise is given to customers. Try auditing suspect routes unannounced. Validate the goods being sent out on the load, and have a manager count them. When the truck comes in, count in the soil, count in all clean return, and balance it against the load sheet. Discuss any discrepancies with the route person and the owner and/or general manager present. Take it seriously, and they will, too.

Taking a “route ride” is probably the most effective way to get a handle on extra merchandise. This is an audit of the route person rather than the customer. At the customer site, look for extra inventory and how the soil is coming in. Are bar towels being used for grill pads? Are shop towels being used to wipe off Bondo putty? Document the ride-along and review findings with the route person and key management.

Inventory Correction Initiatives — One way to make merchandise control fun to have an annual or semiannual “inventory correction and account growth” contest, to balance inventories with invoices.

Typically, routes are paid new-business commission on “add items” only, not increases. In this case, authorize commissions for contest length (six weeks is recommended) on all inventory increases. This allows the route to fix the invoice by adding the additionally used inventory instead of bringing it back. The commission will motivate any route person, as he/she never gets extra money for fixing invoices.

Given the choice of bringing goods back and putting them into your “amnesty cart,” experience has shown that most route personnel prefer to fix the invoice and make some money. Additionally, when customers are faced with either sending the goods back or paying for it, they will typically approve adding it to their invoice.

As you think about your own operation, use these 12 steps to evaluate and measure where you are.

CHEMICALS SUPPLY: MARLENE WILLIAMS, ANDERSON CHEMICAL CO., LITCHFIELD, MINN.

marlene williamsTextiles are vulnerable to attack from a multitude of misuse situations. One that is easily overlooked is the laundry environment: a chemical, thermal, and mechanical constant for every wash cycle.

Laundry chemistry and machine programs have significant impact on textile fiber damage or longevity.

Matching fiber and soil classification types to machine chemistry and programs can optimize soil removal, fabric wear, and overall product quality. Utilizing a “one program fits all” approach or demanding unreasonable rewash percentages easily takes a toll on fabric life.

High alkalinity, temperature, and extended wash cycles can deliver extremely low rewash results, but the toll on the fibers can often be found in the dryer. Changing from a conventional program to a neutral, reduced-temperature program reduced the amount of dryer lint by almost 25% in a number of nursing home laundry tests.

Allocating time and effort to review soil classification by machine chemistry and programs can pay big dividends. Periodic review of textile replacement costs is satisfying to track. Even more satisfying is the excited customer who calls to tell you that because of his/her/your new program, they have to purchase rags—they aren’t making them in their laundry anymore.

August 29, 2012

LAGRANGE, Ga. — It’s a moving, living practice that evolves as customer needs and demands change

LAGRANGE, Ga. — Henry Ford once said, “Why do I have to hire the whole person when all I want to hire is his hands?” Many of us feel the same way about our customers. We wonder why we have to accommodate their ever-increasing expectations when all we want to do is service the account.

When did everything get so complicated?

When did customers get so demanding and knowledgeable about our business?

Why can’t they just accept what we give them?

Welcome to my world, commonly called “Customer Service.”

CUSTOMER MANAGEMENT

Ah, customer service. You can’t survive without it, and you can’t succeed with it today unless you manage all the changes and new customer expectations it creates. We define this as “Customer Management.”

If we have learned anything in the development of a customer service program, it’s that it’s a moving, living practice that keeps evolving as customer needs and demands continue to change.

Many years ago, businesses practiced what they called “customer service,” a process that was ill defined, unorganized, and mostly consisted of someone inside a supplier company who answered customer questions. They handled problems and generally pacified angry customers. They were the go-to person when the receptionist couldn’t do the job. There was no training program.

This position was usually delegated to someone who had “other” additional job responsibilities, a long-tenured or knowledgeable employee who wouldn’t further aggravate an upset customer.

No one covered for this person when they went to lunch, didn’t show up for work, or took a vacation. Most communication was kept either in their head, on slips of paper, or jotted down in a spiral notebook that could be found in their top drawer. Customer service was an “on call” person, a help desk, not a department or holistic practice.

When customer expectations began to grow, so, too, did service calls. We were then forced to create inbound, passive customer service (or customer complaint) positions and departments. For a time, this soothed the savage beast. Unfortunately, by using this system, we never found out about customer problems until it was too late.

Then we gravitated to what we called a “Customer Satisfaction” program. The service people became better trained, information flow was more accountable, and follow-up was more refined. But the most advantageous benefit this new, improved program was designed to provide was still to be only a passive listening post for complaints.

We grew more sophisticated. As textile service suppliers grew more aware of how the advantages of a well-run customer satisfaction process could benefit them, these programs incorporated “Customer Relationship Management” (CRM) training modules. These modules, complete with software programs, stressed the importance of customer relations with all key contacts.

The goal of a CRM program was to enable individuals within their customer base to know and develop relationships with supplier personnel. It made the business relationship more dependent upon personal relationships and expanded the idea of easy access to supplier personnel. It stressed encouraging the customer’s personnel to proactively contact supplier personnel with questions or ideas for improvements. But business leaders soon learned that by simply satisfying customer expectations, they had punched a one-way ticket to mediocrity.

CUSTOMER LOYALTY

Competition began to up the ante. They proactively sold service improvements and product offerings that provided incentives, which enticed “satisfied” customers to defect from their current supplier. Competitors kept up with the changing needs of customers and created new and better solutions for the business community. Competitors continued to create “dissatisfied” customers, and suppliers began losing more and more seemingly satisfied customers while watching profits and sales volume decline.

The realization that it costs six times as much to acquire a new customer than it does to renew or retain existing ones put a new emphasis on customer longevity.

Reaction to this competitive practice was creation of a whole new customer service plan entitled “Customer Loyalty.” Its focus went beyond maintaining a customer’s business for today to maintaining it beyond original contract dates or purchase order requirements. This loyalty-driven practice demonstrated and proved beyond a doubt the exponential profit generated with an extended “Lifetime Value of a Customer” program. But business leaders also learned immediately that the wonderful new concept strained the talent and competence of their service management personnel.

Additional training in identifying and fulfilling specific customer needs, goals and objectives was instituted throughout our industry. Service programs began to “earn” their customer retention. Service department personnel were educated in getting service agreement and purchase order renewals and extensions for these new customer accommodations and improvements. They were also trained in closing competitive opportunities and making sure nothing stood in the way of the customer renewing its service agreement. Customer loyalty programs upgraded service levels to new plateaus of profit and growth for most textile service suppliers.

But as is the case of life cycles of all improvement practices, customer loyalty programs became less successful as they were subjected to improved competitive options and alternatives. Once again, simply fulfilling customer expectations and receiving service agreement renewals and extensions as a reward became increasingly more difficult. Customers who were becoming more intelligent and aware began to question supplier commitment and value.

Competitors began to search out and exploit (again) any current or future supplier deficiencies or weaknesses, then leveraged their recommendations to grow their own businesses through customer acquisition. They made the customer understand the “they don’t know what they don’t know” principle. Customers began to realize their textile service suppliers could, or should, be the ones proactively communicating to them what they needed for improving their businesses, and it shouldn’t be up to them to solicit improvements. Hence the next stage of customer management called “Customer Success” was developed.

Customer success is the achievement of a true business partnership. It is the process by which the supplier becomes necessary to the success of a customer. The more necessary a supplier becomes to a customer, the more valuable they are, now and in the future.

No customer knows the total limits and value of products and services that a textile service supplier can provide. Therefore, it is the supplier who must continually and proactively offer solutions and improvements to the customer.

A true customer success program notifies every customer of the supplier’s responsibility in this regard. Anything less than that level of commitment would be an injustice. It is what every “Customer Service,” “Customer Satisfaction” and “Customer Loyalty” program should evolve into as the supplier evolves into a customer-focused service company. This is where all service companies should be situated today.

With all of the advances being made in social and electronic media, customer management is wide open to faster, higher, wider and deeper account development.

Customer communications, with complete documentation and verification of information, will be available 24/7. Off-site and off-shift employees will have as much access to their account status as any on-site program director. There would be the option to handle invoicing, problem solving, product offerings, service questions, comments and issues instantaneously, or during “off” working hours.

Marketing improvement programs that identify third-party references, testimonials of success, newsletters, critical issues, options and alternatives, and three-dimensional solutions will be commonplace. Any employee of any customer will have access to input problems, questions, suggestions or comments. Tomorrow will have the capability to truly define customer success at all levels of partnership.

Of future customer management programs, two things are certain: 1) these changes will continue to occur at “warp speed” and 2) training service personnel to manage this constantly evolving paradigm will be critical to your customer retention. (A word of advice: embrace youth.)

In the realm of service improvement programs today, the goal of all service management teams should be to decide where their own customer relationship status is on this ladder of progression.

Have they mastered the basics of a customer satisfaction plan?

Do they fully understand—and are they successfully managing—a complete customer loyalty system?

Are they implementing customer success practices and getting the proper returns for their efforts?

And what are their plans for future customer management improvements?

Someone once said that a company’s most valuable asset is its employee base. That may be true but without customers, no one would have employees. Nothing is possible without customers. The more we recognize their importance and contribution to our own success, the more we will endeavor to maintain their business.

We need every one of their bothersome questions and disruptions, and all of their inquisitiveness. We should value all the distress they cause us. If we don’t, there are dozens of competitors out there that would love to “put up with them.”

They are your valued customers. You have worked hard to obtain their business. Don’t lose them to a competitor through negligence. Be the business partner that your customer deserves.

August 28, 2012

CHICAGO — Input from uniforms/workwear manufacturing and linen supply sectors

UNIFORMS/WORKWEAR MANUFACTURING: STEVE KALLENBACH, AMERICAN DAWN, LOS ANGELES, CALIF.

Typically power interruptions come with myriad issues, like the aftermaths of storms and major weather events. Laundry plants are a major operation, from an energy, water and sewer supply steve kallenbachperspective. To have an on-site backup system in place (electrical, steam, water, sewer) would be a daunting and expensive proposition. Laundries do, however, lean on sister operations, suppliers, and, many times, competitors when catastrophe occurs.

National and regional companies have a distinct advantage here, since their locations can back each other up. Using relay trucks, they typically truck laundry back and forth, just like a depot situation. Not quite as easy as it sounds, but most, if not all, of these larger companies have contingency plans in place.

Smaller independents should have a plan in place as well. This means you reach out to another independent or national in your geographical area (typically one far enough away that they don’t directly compete) and make a contingency plan to back each other up in the case of a catastrophic event.

Our industry is an amazing community. When catastrophe occurs, everyone jumps in to help, regardless of competitive situation. But it does behoove an independent to draw up a more formal plan of action, and even an agreement to support, with another company. Many times, the cost of processing can be set for each other, so that both parties have their costs in place.

Typically, regardless of the support in place, a laundry has to “put in” at least one day’s supply of textiles into the system to recover immediately. Make sure that your suppliers have healthy inventories of “route-ready” goods in place for your core merchandise. If you have the cash on hand, it may even be a good idea to have these goods on site, and secured for emergency purposes.

Communication is the biggest issue in these situations. All of your associates need to be accounted for, not only that they are OK, but that they are going to be able to show up for work. All of your customers need to be called, not only to make sure they know you'll be open and on which day, but to ascertain their special inventory needs for cleanup, etc.

Whether you manage a large national location or an independently owned operation, you should have a detailed plan of action, starting with an outline on Processing Support, Logistics Support, Route Ready (New) Textiles, Employee Communication and Customer Communication.

A final word of advice: whether you are billing out extra merchandise in an emergency or for normal operations, make sure you have an accounting method in place so you know whether you got your goods back after the storm. The cost of catastrophe is many times seen in lost textiles. Your typical merchandise control rules go out the door during crisis. Don’t let them! Make sure goods are accounted for, regardless.

Your emergency contingency plan should be thought out, written out, reviewed and tested in training. The key in any catastrophic crisis is to carefully think through your plan of action beforeit happens.

LINEN SUPPLY: STEPHEN MARCQ, GENERAL LINEN SERVICE, SOMERSWORTH, N.H.

Having a written, updated disaster plan in place will help identify problem areas in advance, and direct you toward anticipating problems (including power outages) and having procedures in place to effectively deal with them.

stephen marcqThe Textile Rental Services Association of America (TRSA) has provided excellent and recent information about creating one. This is a great time to either get to work on such a plan for your company, or pull the current plan out and update information as needed.

Speaking from the customer service side, communication, both internal and external, can be critical during the first hours of a power outage.

One key short-term issue is accessibility to your computer system and software without power. For example, being able to contact your customer base from offsite phones could be helpful, but you need access to the information in your database to do so.

Also key is the ability to receive calls, faxes and e-mails. With many companies now using VOIP (voice over Internet protocol) systems, your phones go out along with computers when the power does.

Having small backup generators in place can help maintain continuity and allow key customer service and billing/invoicing functions to continue.

Printing or uploading invoicing to handhelds a day in advance at minimum is good practice, as is fully loading delivery trucks a day in advance. Both these steps will buy additional time, during which power will hopefully return and production will have resumed.

If not, you will have already started to implement other parts of your disaster plan, such as reaching out to competitors you have reciprocity agreements with, borrowing or ordering additional products, etc.

Most power outages last a day or two at most, and as long as you can talk to your customers, print invoices and communicate internally and externally, you should be OK.

Click here for Part 1!

Click here for Part 2!

July 30, 2012

CHICAGO — Jensen, Continental, others report personnel moves

JENSEN USA HIRES COLUCCIO, PROMOTES CHADSEY, NETUSIL

PANAMA CITY, Fla. — Jensen USA has added a new employee to its sales team and promoted two other employees, the company reports.

coluccio

Carmen Coluccio has been hired as a regional sales manager,  Michael Chadsey has been promoted to regional sales manager, and David Netusil has been promoted to project manager.

mike chadseyMost recently, Coluccio was director of laundry for Gaylord Entertainers. His other industry experience came while working for Five-Star Laundry, Imperial Laundry Systems and Morgan Linen Services.

netusilChadsey graduated from the University of Florida with a bachelor’s degree in mechanical engineering. Previously, he was a system designer within Jensen USA’s Design and Engineering department, where he specialized in sorting bin and belt design for Futurail.

Netusil has been promoted to project manager. He has more than 24 years of industrial laundry equipment sales experience (including 20 years with two distributorships) and has been with Jensen for the past four years.


CONTINENTAL GIRBAU PROMOTES MARTIN, ANDERSON, HIRES HULL

Tari Martin

OSHKOSH, Wis. — Continental Girbau has made some changes in its personnel, promoting Tari Martin to director of marketing communications and Laura Anderson to graphic designer while hiring Jodi Hull as advertising assistant.

Martin joined Continental in 2005 as Continental Creative Services (CCS) graphic designer. CCS provides advertising, public relations and marketing services to Continental distributors and their

Laura Anderson

customers across North

America.

In her new role, Martin is charged with overseeing all aspects of advertising, public relations and marketing for Continental, its divisions, subsidiaries and brands.

Jodi Hull

Anderson joined the Continental team in 2010. In her new role, she handles a mix of design and production

work, focusing on the development of print collateral and direct mail materials for CCS.

Hull comes to Continental with 16 years of graphic design, marketing and print production experience. Most recently, she served as a design specialist at Ep-Direct Printing.


AMERICAN DAWN STREAMLINES DIVISIONS UNDER SINGLE MANAGEMENT TEAM

LOS ANGELES — With renewed focus on customer solutions, American Dawn (ADI) is streamlining all current divisions (Institutional, Hospitality and Healthcare) under one management team, the company says.

Vyto Tozer has been appointed vice president of sales and marketing. The 25-year company veteran is charged with all areas of marketing, sales, product development and customer service.

“ADI plans to offer more application-specific products along with ready-to-market solutions for our kallenbachcustomers,” Tozer says. “We are moving from an ‘us’ model to a ‘customer solutions’ model, which holds us all accountable for customer success in the marketplace.”

Steve Kallenbach has been appointed director of market solutions. The 35-year industry veteran will lead growth initiatives and retention dynamics.

“We see our customers’ markets changing and make it our responsibility to lead and respond to these ever-evolving needs, with relevant products and branded solutions,” Kallenbach says. “We are building talent to target new markets and help our customers grow. Simply put, it is our committed goal to be the market leader in providing customer-centric solutions that extend beyond just product.”


mata

ARCO/MURRAY NATIONAL CONSTRUCTION CO. MAKES MATA PARTNER

OAKBROOK TERRACE, Ill. — Elliot Mata has become a partner and shareholder of ARCO/Murray National Construction Co., the firm reports. Mata is a director of operations, overseeing all operational responsibilities of the Process Division. He started with ARCO/Murray in 2005.

“Elliot is integral to our success,” says Brad Dannegger, vice president and regional manager. “He has led ARCO/Murray’s development into a predominant design builder in the process niches/industries we pursue.”

June 14, 2012

CHICAGO — Variety of methods used to find more textile services work

CHICAGO — While the U.S. economy has shown signs of recovery, positioning a laundry as a valuable service to end-users or clients remains critically important. With that in mind, AmericanLaundryNews.com asked its Wire e-mail subscribers this month if they were actively seeking new business or were satisfied with standing pat.

A sizable majority of respondents — 78.6% — to the unscientific survey say they are seeking business. Among them, 50% say acquiring new business is vital to growing their operation, and 28.6% say they’re looking because they have additional processing capacity available. No one tied seeking business to a desire to eliminate competitors.

Approximately 14% who acknowledged not seeking business said it was because they were positioned to serve only their institution’s needs. Another 7.1% didn’t identify why they’re not seeking new business.

No one tied their position to having just the right amount of business, not being capable of taking on more work, or because upper management doesn’t favor prospecting.

Respondents say their institutions or businesses use a variety of methods to seek out new business, including direct sales, cold calling, participating in RFP process, trade shows, print/web advertising, corporate contracts, going door to door, and word of mouth.

Determining what customers want would seem to be a common-sense aspect of garnering new business, and 57.1% of respondents say they seek the opinions of their end-users or clients regularly. Nearly 29% say they occasionally seek their opinions. Equal shares of 7.1% either rarely seek or never seek such input.

If a laundry isn’t ready to attract new business now, it’s due to any number of reasons, including the need for more staff (41.7%); new or additional equipment (25%); better-trained employees (16.7%); better distribution/transportation capabilities (16.7%); “other,” including the addition of specific types of second-shift personnel and better maintenance (16.7%); or larger or renovated production space (8.3%), survey results show.

Roughly 42% of respondents say they’re ready for new business now.

While the Wire survey presents a snapshot of readers’ viewpoints at a particular moment, it should not be considered scientific.

Subscribers to Wire e-mails—distributed twice weekly—are invited to take a brief industry survey anonymously online each month. All managers and administrators of institutional/OPL, cooperative, commercial and industrial laundries are encouraged to participate, as a greater number of responses will help to better define operator opinions and industry trends.

To sign up for the Wire, click the “Subscriptions” button at the top right-hand corner of this page and follow the instructions.

April 10, 2012

CHICAGO — Half of respondents have received industry-specific training

CHICAGO — Many managers and operators polled in this month’s AmericanLaundryNews.com Wire survey place great importance on continuing education, based on the number who said they have received training or certification or have attended educational sessions.

Asked to classify their industry knowledge, 44% of respondents say they are extremely knowledgeable (12%) or more knowledgeable than other managers or operators (32%).

Twenty-four percent say they are as knowledgeable as other managers or operators. Another 24% say they’re knowledgeable but “need to brush up on a few things.” Eight percent of respondents say they are too busy running their operation to spend time learning about the industry.

Half of the respondents have attended a training program or certification program specific to laundry/linen or textile services management, and 72% have attended or participated in an industry-related educational session (association conference, convention seminar, webinar, service seminar, etc.).

Roughly 47% are planning to attend or participate in an educational session in the next year, while 22.4% are not. The remaining 30.6% are unsure.

When respondents were asked to pick an area they’d like to learn more about, there was no clear favorite. Energy conservation was the leader at 20%. Three categories—laundry chemistry, labor management, and operating costs—tied at 16% each. Sales and marketing was just behind at 14%.

There was another three-way tie between maintenance, different types of equipment, and “other,” each of which garnered 6% of the votes.

Thirty-four percent of survey respondents are planning to attend the 2013 Clean Show, which will offer a wide-ranging agenda of educational seminars. Fifty-four percent are not planning to attend, and the remaining 12% are undecided.

While the Wire survey presents a snapshot of readers’ viewpoints at a particular moment, it should not be considered scientific.

Subscribers to Wire e-mails—distributed twice weekly—are invited to take a brief industry survey anonymously online each month. All managers and administrators of institutional/OPL, cooperative, commercial and industrial laundries are encouraged to participate, as a greater number of responses will help to better define operator opinions and industry trends.

To sign up for the Wire, click the “Subscriptions” button at the top right-hand corner of this page and follow the instructions.

April 3, 2012

CHICAGO — As one who has been on both sides of the relationship, I cannot overstate the importance of a sound customer service program.

CHICAGO — As one who has been on both sides of the relationship, I cannot overstate the importance of a sound customer service program. It represents the very foundation of any organization, small or large.

In most cases, the last company you purchased from is likely to be the company you will purchase from again and again. While I think this process eliminates purchasing best value and the state of the art in most circumstances, it is indeed the rule of the road, no matter what industry.

A routine customer that comes to you for a product doesn’t arrive by accident. This regular purchasing is usually generated through excellent customer service. The adage “care for your customer and they shall return” is true.

Customer service is a team concept that involves everyone in the organization. It is essential to sales growth, and the client must remain the top priority at all times, no matter how large or how small their purchase may be.

No matter who in your organization responds to a client’s question, they must always be professional and address them properly (not by their first name). If your client is a member of the military, always address them by their rank. Using common courtesy—“yes, ma’am” and “yes, sir”—actually goes a long way in earning the respect of a customer. Certainly, if you establish a rapport with them over time, you can adjust this point of courtesy, but be careful.

Customer service is a fast, effective way to market an organization’s programs and products, and many organizations strive to perfect these opportunities. Those that have easily accessible programs, especially ones with a proven track record of providing quality and friendly service, can easily differentiate themselves from others in the marketplace.

There are fast, effective ways to interact with a customer base, organizations have discovered. Many have implemented live chat and other unique website programs that are tailored to meet customer needs. Other organizations have implemented the use of multiple computer screens that allow their customer service teams to virtually and simultaneously handle more than two or three customers who have different needs and requirements. The claim is that productivity increases up to 50% with minimal investment.

Good customer care is important, because keeping existing customers is always an easier task than locating new ones. Satisfied customers accommodate your advertising programs. And most companies find that customers do business with them because of another customer’s recommendation. But likewise, an unhappy customer will spread word of their experience to others in the industry, which can certainly threaten any organizational goals.

Thanking a customer for their order by e-mail, no matter if it’s the first time or the hundredth time, can go a long way. Therefore, using an auto responder may be helpful. Developing professional e-mail templates that can address just about any occurrence, good or bad, is probably the best approach. This helps to foster communications and to maintain a customer database. These messages should always include your organization’s point of contact to facilitate continued communication.

First impressions do count. Nothing frustrates a customer more than waiting for someone to answer them. Or, if someone does answer initially, they are then unable to respond again in a timely fashion; nothing should take more than one business day.

Any organization’s objective should be to provide customer service at the highest standards possible and to attempt to be better each and every day.

The client that likes you is likely to do business with you and to recommend your organization to others.

No matter your position, always ask yourself what you can do to improve the service you provide your customers.

February 7, 2012

CHICAGO — True marketing and selling is getting personal with your customers and buyers. You need to be able to capture the needs of your associates and develop profiles that will drive the success of your marketing endeavors.

An AmericanLaundryNews.com exclusive.

CHICAGO — True marketing and selling is getting personal with your customers and buyers. You need to be able to capture the needs of your associates and develop profiles that will drive the success of your marketing endeavors.

Such a requirement goes well beyond demographics, those statistics being used as you gather data from forms, blanket surveys and conference contacts. They are unreliable at best.

You won’t achieve your contact goals by asking questions like, “What do you really purchase and from whom?” and “What interests you?” Most responses will be notoriously incorrect or even untrue.

Most organizations need to ask common-sense questions to uncover the customer’s role, i.e. business issues, buying habits, types of purchasing formats utilized, etc. Such information, if gathered correctly, should create a highly customized profile that could positively impact selling and purchasing.

Purchasing is a measured, deliberate process. The selling of products is a journey, not a sprint to the finish line. Organizations, particularly those in the healthcare arena, must be transparent with customers and sales groups. Profile customers and develop this information so that it can be tailored to provide an understanding of a product’s influence and true purpose.

Take small steps in developing targeted projects, obtain customer feedback, and relay this information to the manufacturing and distribution arm. Then, and only then, will you be able to sell a product at the right time and the right price. These assessments and tasks are essential and critical. Otherwise, your group will become bogged down in creating something that is not beneficial to your organization—think spinning wheel that never stops.

Many groups fail to automate the marketing and sales portion of their business. Automating and customizing programs that depict customer preferences—what they want, what they purchase, and why—is equally essential. If you develop reliable content that is geared toward the tasks and true objectives, then sales and revenue should follow.

Any advertising must incorporate customer and organizational profile information so that readers can judge if the item is worth their time to consider. If not done, then you’re publishing information that might as well be an insert in the Sunday newspaper—seldom read and never understood.

Those responsible must push for integration of both marketing and sales automation, which will hopefully avoid creating stovepipe situations from which recovery is difficult. Creation of a content strategy that conserves cost and increases intensity to purchase should be the goal for any marketing endeavor.

Marketing efforts must address business goals, automation of web goals, strategic goals, measurement of success/failure, as well as what actions you desire customers to take and what actions you will take once you develop such information—a game plan. Gather the troops to decide when your customers are most engaged and uncover your most influential and active advocates outside of your organization.

Never put your customers “on hold.” If you do, you will eventually have no customers. Give the customer what they want, not what you think they may want.

Seldom are sales achieved at conferences. These events should be where you develop personal relationships with existing and potential customers. No matter if you are a customer, buyer or working in sales, always take notes at these conferences. Establish targets for products if you are in purchasing, targets for personal relationships if in sales.

February 6, 2012

ROANOKE, Va. — I once wrote about having an opportunity to use reusable barrier isolation gowns in all the hospitals that comprise the Carilion Clinic. The ability to start such a program was rewarding after having failed to gain approval over the previous seven years.

Product Packaging and Distribution Design

The key to success is to develop a packaging system for the reusable gowns that will work in the same manner as the disposable gowns.

The disposable barrier gowns were packaged in a bundle of 10 and then heat-sealed in plastic wrap. Some units used over-the-door caddies that held the gowns and various sizes of gloves, caps and masks. Large users used small isolation carts similar to a toolbox where the same items were stored in drawers.

We discovered the packaging for the disposable gowns didn’t work well in an over-the-door caddy; once the wrap was torn open, the gowns tended to fall on the floor. So, we tried a 14x16 zip-lock bag. We needed to make some small adjustments to the fold to get 10 gowns into a bag. Once a bag was filled, we were able to squeeze out all the air and create a nice-looking package. The 10 reusable barrier isolation gowns actually took up less space than the 10 disposable gowns.

The mini-distribution department and offsite warehouse handled distribution of disposable isolation gowns. When units needed an isolation cart or caddy, they called mini-distribution, which delivered one to the proper location. Once on location, the nursing unit was responsible for replacing any supplies. Nursing ordered replacements from the offsite warehouse.

Items for each unit were delivered weekly, so this meant a number of cases of disposable isolation gowns had to be stocked on each unit. Limited storage on the nursing units made this a real problem during peak flu season.

We designed a system in which the reusable isolation gowns were stocked on the units in predetermined quantities and delivered by the linen room staff. The staff inventoried the gowns each day and restocked as needed, greatly reducing storage space needs.

Quality Control

If you are going to handle reusable barrier linen, you must do it to the highest standards. Your presentation and quality must be above reproach.

No matter how carefully I washed the barrier linen, some degradation was unavoidable. I could slow repellency loss by limiting the amount of alkali, using a solvent-based detergent, and eliminating all bleach and softener, but slowing it was not good enough.

We added a small amount of a barrier retreatment product to the final rinse. Sutter testing showed not only that the loss was eliminated, the barrier on some items actually improved. There are basically three product types on the market: wax-based, fluoropolymer-based, and a mixture. I prefer the fluoropolymer, because it adheres to the fibers only, has no effect on the fabric’s air permeability, and will not cause yellowing.

We wash reusable barrier isolation gowns in our conventional washer-extractors so we can strictly control the wash chemistry. We have reduced the weight per load by 65-70% of stated capacity due to the gown’s weight.

We inspect and fold the gowns in our surgical pack room. Each gown is inspected for holes or tears, and checked to make sure all ties are in place and are the appropriate length.

A gown is marked on the quality-control grid with a number or letter assigned to only one employee. It allows us to track a quality-control problem back to a specific employee.

We also built in random inspections by our supervisor. This allows us to check the finished work for problems and adjust our training program or take appropriate disciplinary action.

Wednesday: Initial user training and product rollout...
Click here for Part 1.

January 11, 2012

CHICAGO — Taking inventory is often cause for headaches at any laundry facility, and a recent webinar on linen inventorying addressed how to make the process work for each individual system.

Barbara Williams has more than 30 years of experience in the textile industry. As a consultant with Standard Textile Co., she frequently speaks about linen process improvements, linen management, and cost-reduction programs for healthcare operations.

During the webinar sponsored by the Association for Linen Management, Williams stressed the many rewards of taking a regular inventory and touched on a few challenges a laundry facility faces during the process.

Your Inventory Involves What?

The major items that most healthcare laundry facilities count during an inventory are adult patient linen, nursery/pediatric linen, surgical linen, surgical apparel, other staff apparel, pillows, mops and napery. Each facility will need to determine what is important to count, and it isn’t necessary to count everything at the same time. For instance, Williams says, some facilities will count the adult patient linens and the nursery linens, then tally the surgical linen and apparel at a different time.

Where to Conduct an Inventory

Determining where linen is kept is a necessary step before beginning an inventory. Healthcare facilities will need to count linens in patient rooms as well as in ancillary departments. This involves linens on the beds, on the patients and staff, exchange carts, utility carts, in bathrooms, drawers, closets, exam room, cabinets, stretchers, and even on chairs and windowsills.

Staff may again be an issue when determining where linens are stored. In some cases, Williams says, facilities will do what is called a bed-standard method of counting. “Staff members know the actual standard of what is put on a bed, (and) they then take that times the number of beds in a unit,” she says. “And they still take a quick walk-through to see what extras are in the rooms.”

A linen room count and the laundry count need to be conducted as accurately and efficiently as possible. The laundry will be the largest, and it is the most important to get right, Williams says.

Remember to include off-site locations such as clinics. And while many facilities no longer utilize a storeroom, include that location—if applicable—in an inventory.

Who Conducts an Inventory

Where many healthcare facilities ask their nursing staff, including personal care aides, to conduct linen inventories, only 10% of the webinar participants indicated they utilize this population. The majority of participants—40%—use linen distribution or environmental services staff. The more people involved, the better, according to Williams. She says many inventories are conducted by a combination of nursing staff and environmental services staff.

Another possibility is to use laundry personnel, which 30% of webinar participants acknowledged they do. This demographic will be crucial in counting linens in the laundry areas as well as picking up soiled linens and marking them as counted or uncounted.

The use of temporary personnel to help with inventorying is another possibility, but the training required could deter this practice.

The Process of Inventorying

Williams suggests that a 30-day plan be put into place before an inventory. Preparations include identifying the areas and products to count, identifying the facility and areas within a facility that will be involved, and identifying the staff responsible for the counting and recording of linens.

Lists, instructions, forms, signs and schedules are imperative when communicating with staff about an upcoming inventory and while an inventory is being conducted. Education, such as in-service meetings and training, will be another key to success.

Before an inventory begins, the staff involved will need to communicate the date and time of the project, present the procedures to any involved personnel, and communicate with off-site laundries and with customers or patients. A list of names, phone numbers and e-mail addresses is important to communication before, during and after an inventory.

Inventory Day Arrives

Williams provided a list of inventory day events, including sending final communications to all units involved. Collect and pick up all soiled linens in bulk carts and mark as “uncounted,” and verify that these steps have been completed. Close laundry chutes during the inventory.

When the count begins on each unit, teams of two—one to count and the second to record the results—are recommended.

It would be a good idea, Williams says, to establish an “Inventory Central,” or a place, person, or phone extension that those involved in the task can contact for questions and concerns.

When an inventory is complete, either collect the forms or have them returned to Inventory Central. At that time, it would be a good idea to review the forms to confirm numbers and that any comments can be understood. Tabulate results.

Remove signs, and be sure to communicate the cut-off point with all involved. Lastly, Williams recommends an enthusiastic show of appreciation to all those who helped with the inventory.

After the Inventory

When an inventory has been successfully completed, it is time to generate statistics and results; generate the total inventory and the inventory dollar value; calculate replacement or depletion rates; and calculate mysterious disappearance.

Share the results with management, with the nursing staff and with other staff members. And most importantly, Williams says, take action on the results.

“Assess your inventory needs by comparing your inventory with your demand,” she says, “and adjust linen orders accordingly. Retrieve any ‘dead’ or hoarded inventory and review security measures.

“Today, we’re in a budget crunch, and we really need to protect our linen assets.”

Click here for Part 1.

January 10, 2012

CHICAGO — Taking inventory is often cause for headaches at any laundry facility, and a recent webinar on linen inventorying addressed how to make the process work for each individual system.

Barbara Williams has more than 30 years of experience in the textile industry. As a consultant with Standard Textile Co., she frequently speaks about linen process improvements, linen management, and cost-reduction programs for healthcare operations.

During the webinar sponsored by the Association for Linen Management, Williams stressed the many rewards of taking a regular inventory and touched on a few challenges a laundry facility faces during the process.

Among the rewards, Williams says, are balancing supply with demand and assuring that an adequate supply is circulating. Too few linens causes shortages, which can lead to hoarding and a lack of confidence in the system. “Too much inventory can cause misuse and over-utilization of products,” she says.

An inventory also can help a laundry, whether it be on the premises or off site, determine effective allocation of linens, as well as replacement rates.

Determining those rates can lead to a planned purchasing program, thus helping to eliminate panic buying and rush orders. Administrative reporting is another advantage, she says, and allows a facility to have information on hand in the case of an insurance claim after a flood or fire. Budgeting is high priority during these economic times, and taking an accurate inventory can help determine future needs.

Other inventorying goals are ascertaining a facility’s loss rates, determining if a facility has a high rate of “mysterious disappearances” of linens, recirculating so-called “dead” inventory, and identifying locations that may be hoarding linens. As a result, facilities have the opportunity to implement security programs to reduce loss and are able to put some quantities of inventory back into circulation or reallocate supplies.

“As many of you know,” Williams says, “you end up with a lot more in circulating inventory right after a count is taken.”

She recommends taking a proactive approach to linen inventory to identify potential roadblocks or problems and take a closer look at shortages or overages.

Challenges Facing an Inventory

In today’s market, most facilities are being asked to do more with less, which can result in fewer staff resources available to help with an inventory. This can also result in a problem with time commitments and cooperation from a staff that already sees itself as overburdened.

Another challenge can be the large networks that many healthcare facilities are part of these days. “It takes a lot more cooperation and communication,” Williams says, “but many large networks are doing inventory successfully.”

Linen supplies are different from a product kept on a shelf; constant movement of the linens is a cause for concern when contemplating taking an inventory. A healthcare facility, for instance, cannot simply stop the movement of linen, so timing of an inventory is crucial. The number of locations where linen is stored and used, as well as the number of stock-keeping units in a healthcare facility, challenges an inventory manager.

Inventory accuracy often hinges on a cut-off point and a clear delineation between what is to be counted and what is not counted.

A commitment by management, as well as nursing management in a healthcare facility, is essential to an accurate inventory. If the results show a high return on the investment, this can help persuade management to cooperate. Determining what the actual ROI is important as well.

“Are you willing to act on the results of your inventory?” Williams asked participants. “If you aren’t willing to act, then there may be no return on investment. Acting on the results is crucial to making an inventory worthwhile.”

When to Take Inventory

“Today, most large laundries have gone to an annual inventory,” Williams says. “We recommend doing the inventory at the same time of the year so there is a consistency of inventory.”

Williams also recommends semi-annual inventories, more for on-premise laundries than large, shared or pooled laundries. Smaller operations, such as hospitality facilities, can do a quarterly or monthly inventory.

Another possibility is a cycle count. Williams says this works well if a facility doesn’t require a complete inventory, if the manpower is not available, or if there isn’t the level of cooperation required for a complete inventory. She suggests taking one or two of the highest use items and counting those. Then, the following month, select another two items and count those.

When the webinar participants were polled anonymously, 64% indicated they inventory once a year and 9% inventory on a semi-annual basis. Williams was slightly disappointed to hear the remaining 27% don’t take a linen inventory at all.

Also factoring into inventorying is choosing the best day and best time of day during which to act.

Base this on several elements, Williams says: staff availability, low-activity time, nursing practices, shift changes and linen delivery schedules. The important thing, she says, is to be consistent; take inventory at the same point each year, on the same day and at the same time of day.

Tomorrow: Your Inventory Involves What?

December 5, 2011

WINTER HAVEN, Fla. — Managing a laundry facility is a challenge, and when expensive equipment breaks down, the ability to repair it can hinge on knowing where to locate a single part.

During an Association for Linen Management webinar, Parts Are NOT Parts, David Chadsey, managing director of Capital Equipment Consulting (which recently changed its name to Laundry-Consulting.com), spoke about parts management and maintenance, focusing on the need for inventory and documentation.

Knowing what you have by way of inventory is the first step in documenting your machine maintenance, Chadsey says. At some point, every piece of equipment will need to be replaced. Understanding the process and planning for the inevitable will make the job easier to handle, he says.

Chadsey advocates documenting a machine’s usage and tracking inventory as means to understanding what equipment and parts a facility uses and needs. “Because if you don’t know what you use and don’t know what you need,” he says, “the day you need it, you’re probably not going to have it.”

Maintaining a parts inventory is important to keeping a facility up and running, he says.

When polled, every participant in the webinar indicated his or her “inventory system” was to simply look on the shelf when a part was needed.

Sources

Chadsey considers the most reliable source of parts to be the manufacturer and/or authorized distributor. These companies also have an advantage of knowing the laundry industry and generally know what a facility will need in the way of parts. Troubleshooting support often comes as part of the package as well.

“This has the lowest risk,” he says. “They built it, they represent it, (and) they really should know the part you need. And when it shows up, it has the greatest likelihood of being the right part.”

Since many of the machines used in laundry facilities are comprised of parts from other industries, local parts outlets may be an excellent alternative, he says. With competitive pricing, local supply houses typically offer faster delivery and availability. The one downside is that these businesses are not usually industry-specific, so the person behind the counter may not know much about laundry equipment.

Another source could be specialty parts makers, such as Industrial Wheels, Depend-O-Drain and C&W Equipment. Companies like these often advertise in trade publications, Chadsey says, and this source could help lower costs over time.

For any part that may need to be tooled, a local machine shop may be the answer. Chadsey suggests that a local machine shop can often handle a job at a lower cost and with a quick turnaround. Used equipment also may be of help, at a significant savings, he says.

The majority of the webinar’s participants indicated that they purchase parts from a manufacturer or authorized dealer, using a parts outlet or specialty parts manufacturer as a secondary source.

If a now-defunct manufacturer made a machine, a laundry manager may need to get creative when it comes to replacing parts, Chadsey says. Alternative sources become more important when a piece of equipment is not supported as it was the day it was purchased.

In addition to parts outlets, specialty manufacturers, used equipment and custom machine shops, former distributors and the manufacturers of individual parts may be able to help. Issues may arise, he cautions, if the machine has structural problems in addition to individual parts problems.

Replacements

When it appears that equipment will need to be replaced, Chadsey suggests looking at benchmarks before making the decision, including the cost of continuing its operation and an analysis of ROI.

When looking at the cost of operation, consider safety issues or the structural components of the machine; look at the cost of parts and labor, a prime reason to maintain documentation on the repairs for that particular piece of equipment; and be sure to include the cost of downtime.

When considering the ROI, look at the cost of the old machine vs. that of a new or different piece of equipment. This analysis also will help determine a predictable replacement schedule, which is an advantage when talking with senior management.

Chadsey encourages any laundry manager to maintain the documentation on every piece of equipment, to be more aggressive in tracking and maintaining inventory, and to know their regional and local providers of parts. Planning is key to keeping costs down for any facility.

Click here for Part 1.

August 10, 2011

CHICAGO — On Aug. 1, American Laundry News began delivering its online advertisements through Google’s DoubleClick for Publishers (DFP) ad server. This move comes with a built-in, trusted third-party auditor of our ad impressions, and represents our next step in improving our service to our audience and advertising clients.

Our ad reporting complies with industry standards as set forth by the Interactive Audience Measurement and Advertising Campaign Reporting and Audit Guidelines. This document establishes a detailed definition for ad impressions—a critical component of Internet measurement—and provides certain guidelines for Internet advertising sellers and ad serving organizations for establishing consistent and accurate measurements.

The American Association of Advertising Agencies (AAAA) and other members of the ad buying community asked for consistent counting methods and definitions and better counting accuracy, and this project was the result.

In adopting these standards, American Trade Magazines LLC, publisher of American Laundry News, stands alongside other leading media companies that participated in the project such as AOL, Walt Disney Internet Group, Forbes.net, MSN, New York Times Digital, Yahoo! and Google. Our partnership with Google means that we can provide our clients and potential clients with better targeting, independently verifiable ad tracking, and broader creative options. To our audience, it means more relevant content and a richer, more personalized interactive experience.

For more information on the IAB guidelines, visit http://www.iab.net/iab_products_and_industry_services/1421/1443/campaign_measurement_audit.

August 5, 2011

Google is the main way that people find information, products, services, and local businesses. Make sure that potential customers can find your site when they're searching for what you offer. In this webinar, we'll explain the concept of search engine marketing and identify strategies for search engine optimization. This TRSA-endorsed webinar by UniformMarket LLC takes place at 11 a.m. ET on Wednesday, October 19. The presentation is open to all uniform rental/sale, industrial laundry and linen supply company owners, executives and managers.

April 11, 2011

CHARLOTTE, N.C. — With today’s announcement that it has acquired South Florida-based Q Linen Service, Swisher Hygiene Inc., a provider of hygiene and sanitation products and services, has acquired three laundry service companies in three separate deals in the past two weeks.

CHARLOTTE, N.C. — With today’s announcement that it has acquired South Florida-based Q Linen Service, Swisher Hygiene Inc., a provider of hygiene and sanitation products and services, has acquired three laundry service companies in three separate deals in the past two weeks.

Q Linen Service serves the Miami market and provides facilities services such as the delivery of linen, bar towels and aprons to the foodservice and hospitality industries. Giuseppe Calderone, one of the owners of Q Linen, has joined Swisher Hygiene.

August 27, 2010

"What aspects of inventorying and securing textiles pose the biggest challenge? What percentage of losses would you consider to be acceptable if the proper controls were in place? And how could an insufficient inventory impact the rest of my operation?”

Equipment Manufacturing — Joe Gudenburr, G.A. Braun, Syracuse, N.Y.

August 25, 2010

“What aspects of inventorying and securing textiles pose the biggest challenge? What percentage of losses would you consider to be acceptable if the proper controls were in place? And how could an insufficient inventory impact the rest of my operation?”

Consulting Services — Charles Berge, American Laundry Systems, Haverhill, Mass.

May 5, 2010

“How can we tell if we’re getting our money’s worth from the textiles we’re using? What are the characteristics of a high-quality textile after it has been processed a dozen times, 50 times, or more? And can item type — flatwork or garment — actually influence textile durability?”

Textiles — Elizabeth Easter, Ph.D., University of Kentucky, Lexington, Ky.

April 8, 2010

“To ensure that the laundry I manage is achieving top production on an ongoing basis, what records should I be keeping and why? Do you track anything out of the norm?”

Consulting Services: Charles Berge, American Laundry Systems, Haverhill, Mass.

March 12, 2010

CHARLESTON, S.C. — There are benefits to be gained by utilizing websites and social media in promoting business, says the Textile Care Allied Trades Association (TCATA), and online marketing will be among the topics featured during the association’s Annual Management & Educational Conference here April 28-May 1.

December 30, 2009

“There is consistent pressure to produce goods at a rapid pace, based on directives to meet certain individual production figures, but I’m concerned that we’re sacrificing quality for quantity. Can you offer suggestions for how we can balance the two?”

Textiles: Elizabeth Easter, Ph.D., University of Kentucky, Lexington, Ky.

August 18, 2009

CHICAGO — More than 92% of respondents to this month’s unscientific Wire survey say their laundry transports goods to/from their plant by truck or van, but the size of their service areas varies greatly.

The majority — only 32% — serves a radius of 100 to 200 miles. Running a close second were service areas of up to 25 miles and greater than 200 miles, both of which were selected by 24% of respondents. Next was 50 to 100 miles (16%). Last was 25 to 50 miles (4%).