Automatic inventory replacement applies to non-garment items that have a propensity to be lost. This type of program goes by different names – allied maintenance, auto replacement, auto maintenance, par level maintenance, etc. Generally, items that get enrolled in this type of billing are shop towels, napkins, hand towels, washcloths and bar wipes. The idea behind auto replace is simple – items have a natural attrition rate, and auto replace maintains your inventory. Here’s the big question – how much are you ACTUALLY losing versus what you provider is telling you that you’re losing? Do you know how many pieces per year you’re paying to replace versus the inventory level? Do you know what that relationship should be?
Your provider has probably told you that there are industry standards that help them determine the appropriate rate of loss. That’s true – unfortunately. The industry does apply one standard across all customers, which is why it is likely a problem for you. Applying a single standard across millions of customers helps the provider more than it helps the customer. Each customer’s inventory position is unique to the usage at that point of consumption. The odds are likely that the standard that has been applied to you is too high. In other words, you’re probably not losing as much as your provider says you are. Obviously, that means you’re throwing money away.
While we don’t want to be too critical of providers in this regard – non-garment inventory management is tricky – we do see this as a big problem that can be solved. The uniform rental industry has been very slow to adopt discrete and sensitive inventory management techniques, and we want to fix that. The relationship among the replacement rate, maintenance rate, inventory quantity, your type of business, delivery schedule and type of item can have a masking effect on actual loss. Which equates to unnecessary cost. It does not have to be this way.
Research indicates that the standard maintenance rates used in the industry skew too high, and that far too many customers are paying more than they should. Unirithm looks at each point of consumption as its own use case and models the best loss rate. We help you understand a fair and balanced rate based on your business, not the industry’s standard. Why pay more when you don’t have to?