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Cutting costs, boosting profits
Are you spending out on wasted stock? SmartTask’s Paul Ridden explains how to master stock management for business success.
A hidden cost within many cleaning businesses is stock. Supplies that sit in cupboards at client sites can be almost invisible to those at head office. As well as being overstocked, these cupboards often include products that are never used, or have become
obsolete. Not only that, are your operatives using premium brands for non-chargeable
supplies when budget brands would do? If so, there is a potentially huge cost saving to your business.
Could 10% of your cleaning supplies budget go straight to your bottom line?
Facilities management industry commentators estimate that, on average, 10% of stock held by companies is never used, eventually being thrown away. Think about the amount your business spends on supplies per year, and think about the difference to your bottom line if you could save 10% or more of that figure. By managing stock more effectively, you could be improving cash flow, increasing profitability, ensuring a more consistent service for your customers and making life a bit easier for your operatives.
The latest workforce management systems now provide a supplies management module, which brings a whole host of benefits for the business.
Detail, accuracy and control
Having an accurate record of supplies held at client sites will highlight just how much capital is tied up in stock. As supplies are used up, operatives can request replenishment from within the app. The order can be verified or approved by an operations manager, ensuring that the correct products are ordered. If the supplies are chargeable, then they are automatically itemised and added to the client’s invoice.
When managed centrally, orders can be placed in bulk to take advantage of any discounts available, particularly key for non-chargeable items that may be included within a services contract. The number of suppliers may be rationalised, reducing the administrative overhead and leading to economies of scale.
26 | TOMORROW'S CLEANING Quality management
Keeping a record of product usage can highlight quality issues or shrinkage. For example, is enough product being used to ensure a quality finish (i.e. the amount of bleach down a loo, and the number of times per week). Conversely, is so much product being used that maybe there is a shrinkage issue. Once centralised ordering with management oversight is instigated, this type of issue tends to recede and disappear.
Tangible benefits of centralised
Supplies Management A supplies management system provides complete visibility of stock across your business, potentially covering every location, enabling you to:
• Optimise stock holdings to suit individual client locations and contracts
• Closely manage bulk ordering to maximise discounts • Monitor quality and product usage levels • Address any shrinkage issues • Ensure correct billing for chargeable items
• Ensure non-chargeable items are managed as efficiently as possible
All of this will deliver:
• Better communication between operatives and head office
• •
Improved cash flow Increased profitability
• Better customer service
Contact us today to find out more about how workforce management and supplies management software could help your business. Email:
tellmemore@smarttask.co.uk.
www.smarttask.co.uk/smarttask-cleaning twitter.com/TomoCleaning
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