The decision of whether to opt for an all-inclusive cleaning contract or a traditional one with consumables ordered and charged separately is a crucial consideration for businesses aiming to streamline their operations and cut costs. In today's dynamic business landscape, the choice between these two types of agreements comes with its own set of advantages and disadvantages, each impacting the overall efficiency and financial aspects of a company.
Consumables – Pay as You Order
The traditional cleaning contract, where services are charged as a fixed fee and consumables are ordered as required and get billed separately, has been a conventional approach. This structure provides companies with flexibility and detailed control over consumable usage, allowing for cost savings during periods of low demand. In the fast-paced and ever-changing business environment, this model may become less common.
However, after pandemic, thanks to the trend of working from home and population of remote working culture, there is a dramatic drop in office attendance and foreseen a further reduction in the coming future. Under the great uncertainty, it will be good to keep the flexibility for consumable ordering.
All Inclusive Contract
One significant factor influencing this shift is the rising administrative costs associated with tracking and managing consumables separately. In an era where businesses are meticulously scrutinizing every expense, the luxury of having a dedicated administration or office manager has become a rarity. Management teams are now reluctant to invest time and resources in monitoring the usage of items as basic as toilet paper.
The administrative burden of handling consumables separately involves activities such as placing orders, ensuring smooth deliveries, reconciling orders with actual consumption, conducting stocktakes, managing excess inventory, and monitoring stock levels. For procurement professionals, allocating time and effort to these tasks may not yield a significant return on investment when compared to focusing on more strategic areas.
An all-inclusive cleaning contract addresses these concerns by streamlining the entire process. Businesses can avoid the intricate logistics of managing consumables separately, as the fixed fee encompasses both cleaning services and necessary supplies. This approach proves particularly beneficial in a climate where companies are striving to minimize administrative complexities and enhance operational efficiency.
Additionally, an all-inclusive contract helps businesses mitigate the risk associated with fluctuating prices of consumables. While Consumer Price Index (CPI) fluctuations are infrequent, the costs of supplies seem to increase regularly. By opting for an all-inclusive contract, businesses can lock in the expenses for consumables at the time of contract signing, providing a level of financial predictability and stability.
Overall, the all-inclusive model offers peace of mind for business owners and procurement professionals alike. This approach not only simplifies administrative processes but also helps control costs and shields businesses from the unpredictable nature of consumables pricing. As companies strive for efficiency and cost-effectiveness, embracing an all-inclusive cleaning contract emerges as a strategic choice in today's competitive business environment. While, the consumable ‘Pay as You Order’ type of contract will give the great flexibility and control for the larger size business.
White Spot Group tailor the contract and provide great customer service experience for our client. Call us today at 1300 797 632 for an obligation free quote. Alternatively, click ‘contact us’ at the top banner.
