Key trends in the janitorial industry

In this blog we will discuss the trends currently affecting the janitorial industry. We will then consider ways to respond, ensuring your company’s continued growth and market advantage.

Increasingly stringent health standards

As health and sanitation regulations in the healthcare, food and beverage, and education industries become more stringent, the demand for janitorial equipment and supplies continues to grow. In the US, the janitorial industry took a hit in 2008. Since then it has seen steady growth and is expected to surpass its previous peaks by 2019. By comparison, Australia has seen continuous growth overall, as it didn’t sustain the same blow as the US.

With the increase of stringent health regulations and projected industry growth, it is essential that warehouses, suppliers and retailers are well prepared to meet the demands. Implementing high-quality business intelligence (BI) solutions such as Phocas will provide a clear picture of what’s happening throughout your company. Like companies such as SC Johnson have found, this level of insight enables you to work smarter, not harder, by streamlining operations and discovering new opportunities.

“Now, the information that we need is immediately available at our fingertips”, says Bassam, the finance director for SC Johson. “We can easily drill up, down, and sideways to reveal the underlying cause of a trend or an issue that has been reported. This level of understanding and insight enables us to make decisions within an appropriate time frame to correct problems or re-assess our strategies.” Having access to the details in your data will enable your company to achieve and maintain the competitive advantage in this increasingly competitive industry.

Trends towards consolidation increases price competition

Trends toward consolidation make competitive pricing a challenge for small and mid-size companies. Fast, in-depth reporting is the key to competing with a “Goliath” in this industry. Traditional reporting is often slow and lacking the level of detailed analysis needed to compete. With BI, your staff has the ability to generate detailed, dynamic reports in real-time

Your sales team can see things like the number of customers in decline. They can use that information to drill down into the stats of individual customers, compare their purchasing history to those of similar customers, and identify cross- and upselling opportunities. Detailed customer analysis enables your sales team to understand and accommodate your customers’ needs, and intervene before they are lost to a competitor. When customers feel understood, they are likely to remain loyal. This level of customer care is a critical component to remaining competitive with an industry “Goliath.”

Wholesale bypass mitigates sector growth

Nurturing customer relationships is particularly important for wholesalers, especially those in the United States, as many customers have begun bypassing wholesalers. This practice of bypassing of wholesalers has mitigated growth in this sector. Consequently, it is mission critical that wholesalers deliver exceptional customer service, convenience, an extensive range of products, and competitive pricing. Wholesalers can offer more competitive pricing by streamlining operations to reduce costs.

The janitorial supply industry remains labour intensive

A research report by IBISworld states that the janitorial supplies industry, despite being low on capital, remains high in labor costs. With increasing market growth and the need to remain competitive, companies must minimize capital waste. This is where BI can make a difference.

BI can provide an accurate picture of your company’s bottom line. This information offers actionable insight into things like how to optimize stock levels by reducing overs-tock and eliminating dead stock. BI can also help improve your Delivery In Full On Time (DIFTO) metric, analyze your rebates programs, and identify new sales opportunities. Lower costs allow you to offer competitive pricing without reducing your profit margin. Armed with these insights, you are able generate value, promote company growth, and remain competitive in today’s challenging marketplace.