Proving the Business Case for the Internet of Things

Kinetic RFID helps hotels keep track of laundry

Steve Rogerson
May 12, 2015
One of the largest expenses in the hospitality industry is the cost of towels, sheets and related linens. While theft may contribute to the cost, one of the key inefficiencies within the supply chain is inventory management and laundry service cost.
To help manage assets and control laundry costs, Kinetic RFID, a provider of asset tracking technology, has teamed up with Hotelier Linen Services, a hospitality laundry service in south Florida.
"Hotelier is the pioneer in the south Florida market to embrace this technology and we are excited to be bringing innovative solutions and added value to our current and future clients," said Angel Pis-Dudot, CEO of Hotelier.
Controlling linen loss as it circulates around the hotel, leaves the property for laundry servicing, and returns presents a significant challenge. Linen losses and depletion in inventory negatively impacts budgets and revenue, and can also affect the customer experience through inefficient allocation of items. By automating the process, manual errors are eliminated and linen inventory can quickly and precisely be tracked and audited in real time throughout the hotel.
"Kinetic RFID and Hotelier Linen Services are taking a leadership stance and demonstrating our commitment to investing in the future of the hotel and hospitality industry in south Florida," said Jeremy Ryan, CEO of California-based Kinetic RFID. "By integrating our asset tracking technology into the laundry system, together we are able to improve the hotel's operational performance and initiate work processes that reduce labour costs while promoting increased accuracy and transparency. Importantly, we are able to convert operating data into precise and effective management actions and show a hotel the impact to their gross operating profit and bottom-line RoI."
The Kinetic RFID and Hotelier collaboration will allow hotel asset managers to benefit from real-time, live information about the location and movement of each asset, as well as be able to guarantee accurate distribution of each item to its proper location.
"Linen and laundry savings come from always having the optimal levels of inventory on-hand using the best practices of first-in, first-out," said Michael Lallana, chief operations officer for Kinetic RFID. “Laundry savings also come from paying for exactly what is being laundered and not for kilograms of soiled laundry. By automating the tracking of assets, we are able to provide accurate accountability for each item and stabilise expenses.”
Every hotel has a set of different operational procedures and Kinetic RFID and Hotelier will be working closely with hotel operators during the preliminary stages of integration of the RFID tracking system to develop and calculate RoI that accurately represents each hotel.
"The closed-looped check0in and check-out system between the hotel and laundry is the hallmark of our TAP (transparency, accuracy and partnership) programme and ensures our hotel clients unparalleled accuracy in effectively managing their linen assets through our alliance with Hotelier," said Drew Golden, chief financial officer of Kinetic RFID.