Laundry facility for a hotel business is highly needed in order to provide guests with clean linens and bath towels; thus, utility costs are usually a fact of life. The responsibility in terms of high utility costs is much shouldered by the hotel. In its operational view, the hotel considers strategically to do more than simply survive especially in this contemporary time that there is an increasingly competitive marketplaces (Atkin and Brooks, 2015). Generally, an issue in relation to facility management, ABC Hotel intends to specify the costs and investment paybacks and an action plan to analyze the feasibility of laundry service provision to either in-house or offsite basis. Significantly, the view of facilities management plays a pivotal role in support to the entire core business and must be closely coupled with the strategy.
Benefits and Advantages of an In-House Laundry Facility
Disadvantages of In-House Laundry Facility Management
Despite advantages and all the beneficial effects of having an in-house laundry facility, it is an undeniable fact that there are also some considered disadvantages. Foremost, there is a need of initial capital investment and which is a bit high.
There is a need for additional laborers or workers to perform the responsibilities; thus, higher labor costs. Another disadvantage to consider is on the facility’s maintenance and repairs. Also, in order to ensure of the effectiveness of having an in-house laundry facility, this requires a larger area. In this way, it can allow the whole laundry management within the premises of the hotel. On the other hand, a requirement of special management or technical expertise (The Society, 2014) must be complied. It is a given fact that both advantages and disadvantages are always present in any form of businesses or management system, as long as the effect drives the company’s business operations toward achieving its goals and objectives.
Off Site Laundry Advantages and Disadvantages
In having an off-site laundry facility, the business must necessarily take note of the factors in terms of capital and operational costs (Chang, 2007). In the same way, there is a need to review for maintenance contracts that will basically include all the equipment required and to be used. The use of water or the source of water is also another concern to take into consideration. In fact, there are hotels that opt to outsource their laundry service needs primarily because of high labor and equipment costs. Additionally, preferring off-site laundry services also bring a lot of flexibility and might as well minimize in terms of financial aspect. Although, when considering outsourced or off-site facility, the hotel must importantly keep in mind on the advantages and disadvantages prior to finalizing the decision to taking the plunge. Below are the views covering the advantages and disadvantages on having an outsourced or off-site laundry facility to perform hotel’s required linen laundering service.
Advantages of an Outsourced or Off-Site Laundry Facility Management
In terms of the hotel’s preferred offsite laundry facility, the business’ core activities can be concentrated without bothering on the laundering operations. It is cost savings and can lead to have a lower cost of operation and labor. Considering offsite option, this can allow the hotel to save lots of money especially with regard to space, machinery, detergent, electricity and water. Furthermore, savings can also obtain on maintenance and repairs of machinery. Above all, there is no need for additional staff (Chang, 2007) to run the laundering section. Hence, there are no expenses in terms of salaries for staff.
In the overall operations of the laundering section, offsite offers a reduction of overhead costs as mentioned above, which is really needed in coming up with running back-end operations. This view also considers the contribution of offsite laundry in a way that it can help in overcoming potential challenges or difficulties. Obviously, regarding the hotel’s cash-flow this can be streamlined (The Society, 2014). To further boost productivity and efficiency, the expected business operations can be more thriving and better-prepared for market challenges.
Through this system of offsite operations for a laundering section, it may allow the hotel to be freed from technology investment, infrastructure and the people who do in running the services in general sense. Therefore, with offsite option, this offers business flexibility in terms of staffing and manpower management. It is because the provider of the service will take the responsibility most especially in the workforce management (Atkin and Brooks, 2015) – thus, another savings of costs to consider. Moreover, with offsite laundering can emphasize the ability of the business to develop new competencies as well as the skill-sets which can be utilized as a competitive edge.
Disadvantages of an Outsourced or Off-Site Laundry Facility Management
As explained above, every business operations regardless of the nature of the business per se has pros and cons to consider. Among all biggest disadvantages in taking an opted move for an offsite or outsourced laundering is the risk of losing sensitive linens of guests, for instance. Also, there may be loss of confidentiality, though, laundering may not be that too sensitive but then again it is still subject to it. There can be a loss of management control (Chang, 2007) in terms of the exact quantity return of items, etc. That will typically affect the control operations (The Society, 2014) and deliverables of items per bulk or volume that are being outsourced.
On the other hand, quality may also be affected. Though, the laundering may depend on the service provider being hired or contracted by the hotel. In such, the quality of the service acquired can either be in a required quality-based outcome or in reverse. The possibility of delays and inaccuracies can happen on the aspect of delivering the finished or laundered linen materials / items. This may mean of not meeting the required timeframe. Even if costs can be minimized by means of offsite option, there may still be hidden costs and / or legal issues which can occur once the terms and conditions are ambiguously defined.
In availing for offsite laundry services, the hotel becomes dependent on the provider. In lieu with the location of the chosen provider, this can actually lead to having poor communication and that may cause lower productivity. This is obvious to consider, there can be reasons that the goals and objective of the desired laundry facility management (Madson, 2014) may not be met by the hired or contracted laundry service provider.
The Cost Factors
Indirect Cost
Based on what the company as opted to providing laundering service, assessing the comparative costs between in-house and offsite service provision, it is important for the hotel identify all costs involved – indirect and directs costs – consisting of internal management of external contracts as well as the ongoing training and development of the in-house personnel.
Direct Costs
In contrary to indirect costs, with direct costs, this can easily be ascertained. In the aspect of choosing the offsite service provision, the contract amount is the indicated figure which is readily made available. While with in-house service provision, the calculation of direct costs can take part of the salaries with benefits.
Laundry Facility Impacts on Facilities Management and Sustainability
In the aspect of the company’s laundry service provision, either in-house or offsite, it has to make imperative shift towards sustainability and adhering to facilities management (Booty, 2009). The impacts matter on how the laundering services have been delivered. It is always on the fact that any form of business thriving business sustainability and will increasingly exert its best to attaining a continual growth. With the concept of facilities management, this imposes on the significance to which a particular company has to emerge discipline appropriate to its current business operations (Krugman, Obtsfeld, and Melitz, 2012). In order to have an effective and efficient function level, it is the duty of the laundry section of the company to ensure proper management. It is by way of offering an added value for improvements to the core business of the company in general.
Conclusion
This is to conclude that the manner to which a particular service (s) is being offered, facilities management has to be fully implemented and followed. As far as both advantages and disadvantages of in-house and offsite laundry facility are concerned, the importance of laundry service provision always vary to which may be the most applicable to the current business operations of the hotel and its capability. Both aspects service contribute beneficial effects and can contribute to the hotel’s drive toward achieving its goals and objectives.
Recommendation
In view of making the most applicable and profitable decision, the management of the hotel must ensure its both capability of providing the service and the effort needed in order to fully and effectively manage such services. It is best recommended that, with the in-house laundry facility can offer a profitable outcome in the part of the company. At the same time, in terms of control, the company has the full control of the entire laundry operations. Both indirect and direct costs must significantly be reviewed.
Facilities management will greatly affect and gives impact to the overall performance of the business. To consider the laundry facilities, it is very important to ensure the visibility of enhancement potentialities in a way of contributing towards the provision of the optimal work and business environment in general sense. Correlation to these significant potentials must highly be considered and reviewed. The hotel should always consider its capability of which it prefers to choose and the feasibility of the project.
References
Atkin, B. & Brooks, A. (2015). Total facility management. 4th ed. Oxford: Wiley-Blackwell.
Booty, F. (2009). Facilities management handbook. 4th ed. Oxford: Elsevier Butterworth-Heinemann.
Chang, H. (2007). Cultural communities in a global labor market: Immigration restrictions as residential Segregation. USA: University of Pennsylvania Law School.
Krugman, P., Obtsfeld, M., & Melitz, M., (2012). East Asia: Success and crisis in international economics. Theory and Policy. Addison-Wesley.
Madson, C. (2014). Sustainability laundry room practices: New washing technologies raise standards and meet the needs of sustainability facilities. Cleaning & Maintenance Management Magazine.
The Society. (2014). Strategies for facilities management. The Facility Society.
