Laundry InSourcing Services

Laundry InSourcing – The Next Best Option for Hotels & Resorts

Historically the hospitality industry had three options for providing laundry-linen-uniform services for their properties and guests:

1. Invest in equipment and operate an on-premise laundry
2. Invest in building and equipping a laundry plant to serve its various brands from a centralized location or from a larger hotel serving as a shared laundry facility
3. Close the laundries and outsource to a commercial laundry

Hotel owners typically prefer not to invest or reinvest in laundries and would rather choose investing in revenue generating hotel rooms, restaurants, spas, and recreation areas. According to industry veteran Sheldon Anderson, President of Anderson Textile Services, a leading laundry-linen management and consulting firm, InSourcing is becoming more common as word spreads about how hotel owners and management can enjoy the best of both worlds. That is their linen and uniforms are processed within the hotel property, and they have control over quality and service without future capital investment.

InSourcing – What is it?

Insourcing is often referred to as the opposite of outsourcing and is defined as a “business decision that is often made to maintain control of critical production”. According to many management consultants and industry experts, InSourcing has become more widely adopted in order to reduce costs and maintain control over service.

Under an InSourcing Agreement, Anderson Textile Services (“ATS”) will offer to operate hotels or resorts laundry, valet, and uniform distribution departments, “collectively Laundry” at a guaranteed “cost per occupied room” or, in certain situations, “cost per pound”. From its fees, ATS will pay all operating expenses, including payroll, fringe and taxes, supplies, equipment repair and maintenance, utilities, and administrative costs.

Benefits to the Owners and Operators

• Guaranteed Laundry, linen and uniform replacement cost reduction.
• A fixed price that varies in direct relation to the peaks and valleys of occupancy.
• Elimination of the administrative responsibilities to oversee the Laundry. Directors of Housekeeping or Engineering will have more time to devote to the core competency, while maintaining control over quality and service.
• Elimination of costs and services provided to the Laundry and its employees, such as payroll, human resources, and engineering.
• Asset protection of the Laundry equipment.
• Reduce linen par levels; outsourcing requires at least one additional linen par.
• Simplification of the Laundry and linen budgeting process, that is, the guaranteed price times the forecasted occupancy become the budget.
• Elimination of employee safety issues.
• Investment in self-amortizing water and energy reclamation systems.

ATS Provided Services Under InSourcing

• Management leadership and all employees required to operate the Laundry
• Regional oversight of our responsibilities with experienced Laundry Directors of Operations – knowledge and expertise.
• High quality and services
• Equipment repair and maintenance
• Reduced utility consumption under our “green program”
• Monthly linen and uniform inventories
• Linen utilization control