Businesses that operate in the hospitality sector are afflicted with heavy linen and uniform expenses. The cost of purchasing and cleaning linen and staff uniforms can add up to become a large sum.
Audit experts now provide specialized uniform and linen audit services to identify and minimize unnecessary costs related to these items. Auditors verify vendor quotations, laundry service bills, and invoices to understand the costs of buying and cleaning linen and uniforms.
US businesses collectively account for a linen loss of around $840 million annually per reports and studies on the topic. Working with expert audit teams like the P3 uniform and linen audit can help your business save significant amounts of money spent on linen.
Compare Vendor Quotations
The primary charge surrounding linen and uniform is the sourcing charge. Your auditor will analyze the vendor’s invoices and quotations and compare the same with other vendors’ quotations in the locality. If your auditor identifies one or more vendors who can give you better prices, he may recommend these vendors to you.
Your auditor may also help you find more profitable sourcing methods like bulk sourcing at wholesale rates or sourcing from a supplier in a different geographical location if the transit costs are low. Several vendors sell linen and uniform material online. If buying from them is cheaper, you may consider the online options.
You could also try negotiating with your existing vendors to get better prices. Most vendors would prefer the option of offering a discounted price to a reliable customer over the option of losing the customer. Your auditor can help you draft new contracts with the vendors favorable for you and your business.
Laundry Service Bills
Your P3 uniform and linen audit experts will go through your linen and uniform laundry bills to know if you are overspending. If other laundry service providers can do it for you at cheaper rates, you could consider outsourcing your laundry to more cost-effective service providers. If you may deal with large laundry volumes daily, it may make sense to have an in-house laundry facility and specialized staff to handle your laundry needs. However, if outsourcing is the cheaper option, it may be best to stick to it.
You may also be able to generate considerable savings by tweaking your laundry routine just a little bit. For instance, you may be able to cut costs by reducing or increasing the frequency of your laundry outsourcing. You may be able to save up on laundry pickup and delivery charges by assigning the pickup and delivery responsibility to an in-house employee.
Linen Rental Programs
If the volume of your linen requirements is low, you could consider enrolling in a linen rental program. Linen rental programs supply linen to your business for a monthly or weekly charge. You can avoid the cost involved in purchasing your linen by paying a recurring charge.
You can also avoid linen inventory management costs and the cost generated from linen wastage. However, you may note that linen rentals may not be a practical solution for large businesses like hospitals and large hotels with elaborate linen requirements.
Your auditor will do a comparative study of the cost involved in buying linen and uniforms and renting linen and uniforms. The study will help figure out which option is more cost-effective for your business.
Planning and Budgeting
Your auditor will help bring den linen and uniform costs with adequate planning and budgeting. For instance, you could plan your linen purchases around holidays if your vendor offers holiday discounts or conducts end-of-the-year sales.
Budgeting and planning will also help give you benchmarks that you can use as guidance when purchasing or renting linen. Your auditor may also give strategies to use your linen and uniform costs as expenses to save taxes.
Keep Track of Costs
The expert audit team may conduct monthly evaluations of your linen and uniform costs and identify discrepancies and losses on a timely basis. Regular identification of unnecessary expenses and losses will help their timely elimination. You can come with ways to avoid these mistakes in the coming months.
Your Auditor Will Help You Generate Savings
Your linen and uniform auditor will help your business reduce linen and uniform costs and help you generate tangible savings in the area. As a business owner, you will have the freedom to focus on your core business by employing expert auditors to look into your cost management issues. Working with an expert audit team will help boost your savings potential and help you grow your business.