The Situation
Dynamic auto dealership group growing organically and through acquisitions.
- 17 different business units spending approximately $140k per year in rental laundry services (uniforms, towels, mats, etc).
- Two different suppliers with 3 different contract expiration dates including one that was 3 years out.
- Fixed Ops Director was frustrated with some service aspects including garment repairs, replacements, increasing invoices and vendor communication.
- CFO wanted more consistent invoicing, predictable future pricing and better reporting on a monthly basis.
TLG Process
The Laundry Guy went to work and did a full audit of the existing contracts
and invoicing for every line item of every location. TLG compiled all of the
results with projected savings for the Initial Analysis and Strategy Meeting.
Client selected the strategy to move forward.
Results
The Laundry Guy reviewed the current suppliers and others in the marketplace and began negotiating to achieve the best pricing, terms, incentives, product quality, customer service and satisfaction guarantees. After several months of negotiating, results included:
- Invoice credits of over $12k from audits and negotiations
- New standards for garment repairs and replacements
- New communication system for all employee and program changes
- Monthly Supplier Satisfaction Meetings with Fixed Ops Director
- Monthly reporting for CFO with benchmarking report by location with
with all changes and variances highlighted
- Over 45% total savings, resulting in 5 year savings of over $300k