Tackling Equipment Spend In Your Laundry
Author: Alicia Singleton at Aqualogic laundry systems group pty ltd
When we think about equipment for our laundry, often we think about the physical attributes of the machines, like the features, ease of use and reliability. But have you considered the cost of life of your laundry equipment and how to manage it?
Just as important, if not more important than upfront capital costs are the ongoing running costs. How much your laundry equipment is costing your business is a very important aspect to operating a financially viable laundry service for your clients.
There are two very important reasons to monitor your equipment spend:
- Proactive Budget Management
The key to achieving good budget management is having the ability to measure and control your uncontracted spend component. Unplanned emergency can add up over time and become quite costly. To enable you to clearly monitor and avoid cost blow outs on such repairs can be a powerful tool and should be considered part of your laundry cost centre management strategy.
- Upgrading of Equipment
Knowing when it is the right time to upgrade your equipment is important. Not only do you want to ensure that you have equipment that is reliable but also you want to make sure you are not pouring good money into repairing a machine that is beyond is economic life. By tracking the spend on your equipment, it can be easily identified when it becomes financially unviable to continue with repair and upgrading is the best option.
Tracking of equipment spend can be simple and effective. The only way to accurately do this is to use a laundry supplier that has an electronic service management system. This system becomes a database which captures all work performed to your machines over the entire lifecycle. It allows the ability to track spend for each machine against its serial number. Such a system should be able to provide breakdowns for maintenance, labour, parts and original purchase price. Having all your spend accounted for and recorded electronically allows for the production of reporting on each of the machines in your laundry at any given time.
Reporting can be done by request or regularly as part of a maintenance arrangement with your chosen supplier. Reporting can allow you to track all contract vs. non contract spend to determine if any particular machine is costing too much. It can also identify if it would be beneficial to your budget to move to an all-inclusive maintenance program.
The capturing of data to produce spend reporting is done during a breakdown or service maintenance visit. Then, over time you can effectively monitor the spend on each machine and ensure that there are no inefficiencies.
The benefits to this type of equipment spend tracking are vital to the success for your laundry operation.
Control over the total cost of your laundry means you can rely on sound budget management with the resources available to quickly assess any machine that is performing inefficiently and take corrective action to ensure that these costs are managed.
It will also allow you access to real time information when preparing your laundry equipment budget for the coming year. It will easily identify any need to capital expenditure ahead of time and allow these costs to be considered in advance on your budgets being set.
Wish to find out more? Aqualogic are leaders in providing electronic equipment spend reporting and tracking for many of its service and maintenance customers. Our laundry experts can guide you through how to get the best out of your laundry and control your costs to ensure your laundry is working at its optimum. Contact us at www.aqualogic.com.au or call 1300 222 119 to find out more.
Purpose – why it’s important to track equipment spend
- Good budget management – controlling the uncontracted spend, repair costs that are not planned in your budget, to avoid cost blow out on repairs
- Knowing when to upgrade your equipment – financially unviable to continue to repair, replace rather than repair
Process – how we do this, what information you need to supply us
- Using a supplier that has an electronic service system – computerized service management system.
- Track equipment spend against the serial number
- Capture all labour and material spend on any machine that we service
- Basically, like a log book for your machines, similar to a car service log book
- All spend is accounted for and adds up – easier for reporting purposes
- Reporting on each of the machines costs over any given time period
- Can be done on request as part of a maintenance agreement reporting
- Can track contract vs non contract spend to determine if the spend is too high for non contracted spend and if an all inclusive maintenance program is a better option.
- Information provided is available once a maintenance agreement is in place or a breakdown service has been completed – service history, cant report what we haven’t captured
- Need to use us as a maintenance supplier to get all their history
- Identifying if a machine is costing too much to operate and needs replacement.
Payoff – The gains you get from tracking it
- Control over the cost of the spend in their laundry
- Proactive reporting of laundry spend – for budgeting purposes, sound budget management
- Budgeting your capital expenditure for replacement of old machines
- Electronic records are accurate and accessible at any time
- Easier for record keeping purposes
- Allows for easy reporting and tracking for budgeting purposes