Customer Inventory Management

- What to consider when your contract mandates Consumables Included

By Stephen E. Ludeke,
Co-Founder & President – Integrity Facility Services

September 17,2018

As Building Service Contractors, we have all been on the expensive end of supply chain management and Inventory Control. While the ideal scenario mandates your customer provides the consumable goods for their restroom & break rooms (paper products, liners, soap), many BSCs have taken the burden from the client and placed it on their field management and cleaning employees. From secure areas with access control to monthly or semi-monthly deliveries, both direct and indirect expenses controls are challenged.

For many, this is where the strength of our internal relationships are tried – both on the customer and BSC employee front. As a matter of sound business principle, whenever a RFP mandates an inclusive clause it is the BSC responsibility to gain definition and review billable exceptions. While losses may not be realized in an office of 15 or fewer employees, the multiplier effect can be staggering in larger or multipurpose buildings.

While population counts are required to estimate the monthly product expense, the number provided must include daily foot traffic. Integrity Facility Services requests information from potential customers which include direct reports (office population), visitors, availability of public restrooms, and contract provisions for special events i.e. monthly meetings, town-hall events, and 24/7 operations within tenant spaces. Integrity’s preferred system is JIT management inclusive of billing by delivery. Under this guideline, the customer only pays for what is delivered & utilized by facility staff.

For mid-sized customers (buildings less than 50k square feet), Integrity Facility Services suggests semi-monthly deliveries (every two weeks). This allows for tighter inventory oversight by field management and increases the visit frequency to customer facilities. As BSCs have experienced, inventory items whose quantities are historically-ordered are often wasted (changing before empty) or subject to unapproved transfer-from-site.

Integrity Facility Services is a Janitorial & Commercial Building Services Company.Founded & headquartered in Bronxville, NY and
Offices & warehouse located in Ossining, NY. We serve customers in Westchester, Fairfield and Rockland Counties.