Sanitation, utilities, maintenance and operations expenses - or SUMO costs - can comprise up to 25% of the total enterprise costs for the average business.


Traditionally, businesses focus on controlling expenses in the top two spend areas (labor and cost of goods sold), but have limited means of monitoring, measuring and managing overhead costs. Yet those costs are staggering for a company with several or numerous locations.

Now, try to actually measure all those costs. You have individual locations under your ownership all juggling their own vendors. It's often difficult at the corporate level to see and measure the performance of suppliers because these costs are fragmented and each vendor has his own units of measurement. While other areas of the business are measured against Key Performance Indicators (KPIs), there is no consolidated view of SUMO spending and therefore no way to create KPIs that can hold employees, departments and suppliers accountable. This lack of information keeps management from answering the most basic questions about its business, including:

 
 

Are we consuming the right amount in each service category?

 

Are we purchasing from the right suppliers?

 

Are we getting the right prices?

 

Are we getting the services we are paying for?

 

Are we operating in the most effective manner?

 

Expense Reduction Experts specializes in helping you answer those questions. We bring a whole new perspective to multi-site cost management – one that works at both the micro and the macro level, benefiting both individual restaurants and hotels as well as the chain.

ERE will clearly define all overhead expenses for each of your units and make recommendations for streamlining processes and cutting costs while maintaining or improving the quality of services. We will oversee the implementation of all approved recommendations, and even provide the necessary training for your staff. ERE eliminates the unnecessary distractions that prevent you from focusing on the important things – like growing your business.

For more information about our services, click on the expense of interest.

 
 
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