Professional Retail Store - September/October 2011 - (Page 53)

“Grant Mitchell’s analysis provides a great starting point as nothing is perfect when you are dealing with Mother Nature, but this article is about as close as you can get to actually having a template to effectively budget and manage snow removal.” Deborah Wold, Area Manager Building Services, The Home Depot Snow Economics How to push operational efficiencies while reducing costs BY GRANT M ITCHELL T he late American Statistician and Consultant W. Edwards Deming coined the phrase, “In God we trust; all others must bring data.” In snow and ice management services, data is king. Facility professionals who analyze and understand their own historic numbers — weather, spend and property specifications — can effectively budget for their snow season. Equipped with this historic cost to price data analysis and a strong co-sourcing effort with your external service provider, you can increase your facility’s operational efficiencies and take the guesswork out of the snow clearing cost equation. Financial Snow Strategy — Weather Data To understand your numbers, first document the snowfall data records for your area(s) over a selected period of time, as shown in the example “Monthly Snowfall Summary” on page 55. This will allow you to calculate average snowfall and standard deviation, which is the measurement used to show how much variation there is from the average snowfall. In our case study, the average snowfall per year is 28.5 inches with a 14.6 inches standard deviation. When relating this information to a bell curve, a clear understanding of risk in relationship to weather is evident, as seen in the chart on page 54, “Bell Curve Related to Snowfall.” The probability of snowfall between the average and plus or minus one standard deviation is 68.2 percent of continued on page 54 As the movement toward partnering with regional and national service providers continues, more than ever, retailers must institute sound strategies to manage costs and operations. Regardless of the type of contract you currently maintain with your snow service provider — seasonal, per push, per inch or some hybrid — it is important to understand whether you are overpaying or underpaying for this service. The answer you seek is in the data. Don’t miss the digital edition at www.naylornetwork.com/prs-nxt/ I September/October 2011 I 53 http://www.naylornetwork.com/prs-nxt/

Table of Contents for the Digital Edition of Professional Retail Store - September/October 2011

PRESIDENT’S MESSAGE
EXECUTIVE DIRECTOR’S COLUMN
GREEN SOLUTIONS: GREEN CERTIFICATION FOR RETAILERS
MAINTENANCE: HOW TO IMPROVE YOUR VERTICAL TRANSPORTATION SYSTEMS
MANAGEMENT: “I DON’T HAVE TIME” IS A LIE!
NEW MEMBERS
LOST IN TRANSLATION: MANAGING RETAIL FACILITIES IN EUROPE
REPAIR OR REPLACE? CONSIDERING THE OPTIONS IN AIR CONDITIONING REFRIGERANTS
ENERGY EFFICIENCY COST SAVINGS
PREPARE ABOVE AND BEYOND WITH PS-PREP
SNOW ECONOMICS
ADVERTISERS’ DOT.COM
ADVERTISERS’ INDEX

Professional Retail Store - September/October 2011

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