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Achieving Balance Between Cost and Need: Fabricare Industry Tips

 

Supplies can be a costly component to a dry cleaning business, therefore it is important to manage inventory and delivery of these essential products. Having the right inventory on hand can promote business efficiency and deter against unnecessary downtime. However, a balance must be achieved between cost and need, to effectively run your drycleaning business. While a FabriCare Insurance Program can help to protect your dry cleaning operation, its cost must also be factored into your business needs.

According to American Dry Cleaner, supply decisions should be made on both strategic and tactical levels to align with business goals and major purchasing decisions will initially require a higher level of management involvement to achieve competitive advantage. Once these procedures are in place, the daily delegations, logistics, and expenses will be easier to manage.

What Should You Keep on Hand?

Every business needs a safety cushion of supplies. In order to determine which ones are the most critical for success, consider the following.

Extent of Downtime- How much of a delay would the lack of supplies cost the business if they were to expire? Will it have a snowball effect and trickle down to the rest of your operations?  While waiting on deliveries, are you and your team still able to be productive?

Predictable Usage- Are you able to generally gauge how long the product will last and when to reorder more?

Resources- Do you have the funds and space to implement these orders and create a larger margin of safety?

Necessity- How critical is the supply? Would its absence result in a lesser quality of cleaning or finishing? Would the customer’s experience be adversely affected?

Financial Flexibility- Last but not least, do you have the financial resources to buy relevant items in bulk to receive a discount?

These tips can help to ensure your regular deliveries and predictable expenses are managed and scheduled accordingly. Once this process is perfected, the balance between cost and need can be achieved and improve your business.

At Irving Weber Associates, Inc. we understand what it takes to run a successful Dry Cleaner or Laundromat business, including investing in a comprehensive FabriCare Insurance Program to ensure that you are financially protected against legal claims. For more information regarding our products and services, please contact us today at 855.764.7406.