Stock optimization

Black box

Linen & Laundry (L&L) operations rank as the second-largest direct cost, following staff expenses. On average, L&L consumes 4-6% of a hotel’s revenues. Whether owned or rented, linen expenses account for 25-50% of the L&L budget. Despite this significant slice of the budget, linen management often remains poor. Other areas of operation are intensely scrutinized, driving implementation of advanced Property management systems. However, linen management lacks such comprehensive system support, making it a ‘black box’.

PAR today

Fides brings control to L&L operations, starting with linen stock management. In general, hotels use the standard formula of calculating the Periodic Automatic Replacement inventory. This calculation assumes one set of items for the room, one for the pantry, one for the laundry, and one for transport. This way of quantifying stock levels is overly simplistic and often ineffective. In our experience, these traditional formulas result in overbuying some items while underbuying others. Without exception, this leads to inefficiencies and unnecessary costs.

PAR in the future

Instead of using these common formulas, Fides calculates precise linen order and reorder requirements by considering daily linen rotation, laundry turnaround time, actual linen usage, and loss and damage rates. This data-driven approach reduces order quantities, optimizes costs, and enhances operational efficiency.

Predictive analysis

Fides proactively alerts managers to issues with recommended actions and supporting data. This improves decision-making, and ensures timely and cost-effective operations. Depending on your configuration preferences, Fides notifies you of the exact date you need to place a reorder. This predictive signaling gives you sufficient time to plan your purchase, secure the best possible conditions, and prevent operational disruptions. It’s a game-changing way to save money while maintaining seamless operations.

See Fides in action

Understanding linen stock is key to optimization, and our mission is to help hotels master their textile operations. Our experience shows that Fides helps hotels save 10-25% on linen spend. Contact us to show you how.