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Hospitality Industry Technology Solutions: California Hotel’s Linen Inventory Loss Costs Reduced By 90% Using RFID Tags, Tracking Software

“… By using the technology the hotel has reduced the rate of missing items from 20 to 30 percent of all stock to only about 3 percent. In so doing, Hotel Linen Inventory Technology the system has paid for itself since its installation in December 2011…each tag’s ID is paired with data regarding the linen to which it is attached, including the type of linen and when it was manufactured. That information is then stored on the Linentracker server…By having a better view into specific linens’ locations—onsite, at the laundry facility or missing—the company has been able to reduce the incidence of shrinkage, as well as require less inventory in storage, since it now knows what its existing levels of linens consist of… If the hotel can reduce that quantity by about a sixth, he adds, significant savings result. Moreover, the hotel no longer need pay for laundering services for goods that were never returned…”

Mr. C opened its doors in summer 2011, with 138 rooms, a pool, a fitness center and a restaurant—all of which require linens. The hotel, owned by Italy’s Cipriani family, is the first of what the family expects to be a chain of luxury hotels under the same name, in such cities as Miami and New York. All linens are produced in Italy and are then shipped to the hotel, with a combined value of approximately $100,000.

Each tag’s ID is paired with data regarding the linen to which it is attached, including the type of linen and when it was manufactured. That information is then stored on the Linentracker server, hosted by Jaspersoft and using Fluensee software.  The specialized tags are designed for use in laundry applications. They can sustain up to 550 wash cycles with tunnel washers, the company reports, including the most challenging part of that cycle—the extractor, which creates the most pressure on tags by pressing the linens and their tags against the bottom of the washer as water is forced out of the machine.

The hotel installed three RFID readers, with two installed above the laundry chute through which all soiled linens pass, and the third mounted at the housekeeping station where the linens are received from a third-party laundry service.  When the hotel first opened, Jagger says, workers tracked the linens manually. Every item was sent to an off-site laundry facility, and the washed and folded versions were counted upon being returned. Manually counting each item, however, was an exhaustive chore, and errors could be made. In addition, he notes, there were large discrepancies between the quantity of items that the hotel management thought was still at the laundry site, and what the laundry service provider itself reported…”

For more: http://www.rfidjournal.com/articles/view?10953

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