In the cleaning industry, labor typically accounts for 80 to 90 percent of facility maintenance costs. With 2016 projections of labor rates around the world to be the highest in three years, and with new legislation in the U.S. and UK having a potential effect on increasing labor costs, the outlook worsens.
Managers of cleaning crews have more pressure today to ensure that they are getting the most out of their employees. In the past, labor efficiency analysis was a manual, time-consuming process that included visiting sites and watching crews work. Managers were left hoping that all sites were reporting their time correctly on a regular basis. Yet, hoping is not an appropriate strategy.
Thanks to new Internet of Things (IoT) fleet management systems, such as TASKI IntelliTrail, managers no longer have to use time-consuming and unreliable methods to track labor. With built-in sensors that track auto-scrubbers’ run times, managers have accurate pictures of labor cleaning time at the touch of a button.
Let’s take a look at a key metric, Labor Efficiency, and how IoT fleet management systems revolutionize tracking. This key metric is a measure of how efficiently a given workforce accomplishes a task. As labor efficiency goes up, costs go down. Online fleet management systems can help improve this metric in three ways:
Benchmarking: Without a true fleet management system, multiple variables can affect the accuracy of actual labor data. It’s often difficult and costly to benchmark because manually collecting data is labor intensive and often inaccurate. However, with sensors in floor scrubbers collecting data only when the machine is actually cleaning, managers can easily obtain a very accurate picture of daily labor. With other online reporting tools, managers can quickly compare similar sites and determine which are performing as expected, which need further investigation and what improvement need to be made. A true, real-time picture of the business quickly develops.
Reducing Labor Cost: With a more accurate picture of labor, managers can begin looking for patterns within and across sites to determine opportunities for improvement. These areas might include improved oversight, procedure changes, focused training and preventative maintenance programs to help underperforming sites. An added benefit of online fleet management is that data is available in real time. This allows a manager to quickly analyze the data after making changes, ensuring the increased efficiencies are being realized.
Enhancing Revenue: As labor becomes more efficient, managers then have opportunities to use these new resources in ways that can enhance revenue. This might include selling additional services to existing customers utilizing the freed up labor or reallocating labor in lieu of adding additional workforce. The accurate labor metrics will also allow companies to smartly and precisely bid new projects. Having confidence in true labor costs for projects reduces the need to add in cost contingencies and ultimately enables a company to go after more business.
At Sealed Air, we believe that the Internet of Clean will disrupt the building care industry and bring game changing efficiency opportunities. Witness the power of data with our free trial of IntelliTrail.