Reduce outsourced and contracted laundry and linen services cost
Our experts work with our clients to manage those contracts effectively, whilst uncovering opportunities for reduced outgoings and look to deliver long term improvements.
Laundry can include at its core:
• Washing of workwear/uniforms
• Washing of table/bed linen
• Washing of hand/bathroom towels
It usually covers, as a minimum, the provision (rental) of the items themselves (workwear / linens / towels) and/or the storage facilities for those items (eg, lockers for uniforms or dispensers for washroom towels), typically under contract with an outsourced service provider. Ancillary services such as provision and washing of floor mats plus washroom services such as sanitary services, hand-washing, hand-drying equipment etc can also be included.
Cost Areas Include:
• Contract Management
• Workwear & Uniforms
• Table & Bed Linen
• Hand & Bath Towels
• Rental of Storage Facilities
• Washroom Supplies and Services
Laundry and Linen Services are generally provided under term contracts of between 1 and 3 years, but these may roll-over onto contracts with shorter notice periods (e.g. 3 months). Contracts of a longer term (5 years) are also possible.
Typically the contracts fall into 3 main types:
• Rental and wash of stock pooled with supplier’s other clients.
– Tends to apply to mats, linen and towels which have common sizes and specification from one client to another
• Rental and wash of dedicated stock (garments etc.)
– Most common for workwear or branded linen which is specific to a wearer or company
– Can be represented by a single charge per item (full rental) or with the rental and wash charges separated (split rental)
• Wash only of client’s own stock.
– Laundry contract structure and complex invoicing format can contribute to difficulties managing this key expense. This often leads to actions being taken to avoid short term charges which then build up very significant liabilities. ERA can help you understand and manage this effectively.
We also understand how item specification and quality is a key factor to getting this right for your organisation. We know that the ongoing management of your laundry services must be as efficient as possible without compromising quality. Consequently contract and supplier management by ERA is key in achieving a successful outcome.
Often this expenditure is a direct overhead cost for our clients, the quality of which affects their ability to create income – a hotel cannot sell a room if there’s no linen available for the bed.
Food Production Client
50% saving on a full rental, managed workwear, including contract negotiations.
Holiday Home Client
multi-site organisation with different contracts in place per site, linen services only, re-negotiated mid-contract to achieve immediate savings with co-terminous contracts introduced.
100+ room establishment implementing 20% savings across 2 sites, with key performance metrics introduced to improve client control over services received.