www.americanlaundrynews.com
JANUARY 2023 • Volume 49, Number 01
Laundry operation supply chain update, strategies
The Newspaper of Record for Laundry & Linen Management
The supply chain is improving, but operators need to be aware of the challenges that continue throughout (Photo: © flipfine/Depositphotos)
BY MATT POE, EDITOR
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rad Shames is president of American Textile Maintenance in Los Angeles. It’s the parent company of Republic Master Chefs and Medico Professional Linen Service and has provided hospitality, healthcare, and retail linen and uniform services in Southern California since 1932. The company has experienced its share of challenges over the past 90 years, and the supply-chain obstacles over the past
few years rank high on the list. Fortunately, the situation is improving. “It seems that things are normalizing more and more each day,” Shames points out. “Equipment is in its own world. “Operators like us can buy more in bulk, which means increasing inventory on hand is an alternative being talked about more and more. “More and more supplies are in inventory by our suppliers, and although much higher in cost, available.” However, the improvements don’t mean that laundry operators can relax when it comes to ensuring they have the equipment and products and goods they need to deliver quality service to their customers.
SUPPLY CHAIN UPDATE
So, what is the status of the supply chain for the products and goods laundry operators need? Shames says inventory levels, overall, have improved and freight costs are lower than what they have been in the past few years. That’s not to say that the supply chain is back to “normal.” “Supply-chain issues continue to be a challenge and not just in our industry, but in a good number of industries in general,” shares Rick Kelly, vice president of sales and marketing for equipment manufacturer Pellerin Milnor Corp. in Kenner, Louisiana. “The supply-chain issue is a moving target. It is not just one segment or type of component, but myriad challenges that change almost daily. “It seems transportation is starting to settle and become stable. Container availability seems to be improving.” Jeff Landry, executive director of CSCNetwork, an organization based in Franklin, Tennesee, that works with inde-
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pendent laundry and linen service operators, has been speaking with vendors and operators about the supply chain, taking note of several factors. “The first one would be product availability, and I think that has much improved,” he says. “I am unaware of any core goods that there are any serious delays as far as product availability. I think almost all the suppliers are pretty much back in stock on what I would call core goods. “The bottlenecks at the ports have been broken. When I read the data on port activity, most of the ports are operating well below their capacities now. So, there is not a pileup of containers; there are not delays; everything is running normal.” Lenore Law, owner of ATS/California Textiles in Corona, California, believes that many of the supply-chain issues were not just a result of the pandemic. “It was the vessel companies raising container costs while they profited millions per vessel,” she says. “They then, in turn, purchased more vessels and drove up their stock. “Ultimately, they made money on both ends while consumers paid the price on everything. Shortages were felt as companies were going to the most profitable ports to pick up containers first, coupled with labor shortages we all experienced.” However, bookings on containers and the cost of shipping have dropped, Landry says. Before the pandemic, retailers like Walmart and Target would purchase high volumes of products to be shipped in containers. Then, during the pandemic slowdown, he says retailers stopped buying. But then consumer buying came back strong and caught retailers off guard,
See SUPPLY on Page 6
LATE NEWS CITY Laundering acquires Lake Superior Laundry SUPERIOR, Wis., and PINE CITY, Minn. — CITY Laundering Co. reports it has acquired Lake Superior Laundry. Terms of the deal were not disclosed. This acquisition expands CITY’s offerings creating a new full-service healthcare division. CITY will continue to operate both healthcare plants in the region. “We have been very careful on selecting the right partner to launch into the healthcare market and are excited to have found the right fit,” says Colin Wetlaufer, president of CITY. “Since the beginning, working with Betsy (Blaufuss, owner of Lake Superior Laundry) and her team has been great and helped to create fantastic synergy between our cultures.” Wetlaufer adds that CITY is proud to welcome all of Lake Superior Laundry’s employees and customers into the family business. “Throughout the entire process, CITY has been amazing to work with and very professional,” adds Blaufuss. “I have full confidence in CITY Laundering to take great care of our employees and our customers.” Family-owned and operated, CITY continues to expand its regional footprint. With the acquisition of Lake Superior Laundry facilities, CITY now has seven locations servicing Iowa, Minnesota, Eastern Nebraska and South Dakota, and Western Wisconsin.
12/13/22 7:51 PM