Cintas Service Agreement Overview
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Questions and Answers

What is the garment LR goal %?

28%

What is the shop towel LR goal %?

35%

What is the linen LR goal %?

25%

What is the dust LR goal %?

<p>3%</p> Signup and view all the answers

What is the Net Billings goal %?

<p>98%</p> Signup and view all the answers

How many delinquent accounts can you have to get the full bonus?

<p>Uniform: 3 or less, FS: 6 or less</p> Signup and view all the answers

What is our Principle Objective?

<p>We will exceed our customers' expectations to maximize the long-term value of Cintas for its shareholders and working partners.</p> Signup and view all the answers

What are the elements of our Corporate Character? (Select all that apply)

<p>Professional</p> Signup and view all the answers

What are the required documents for a driver?

<p>Current Medical Examiners Certificate, Valid Driver's License, Current Vehicle Registration, Insurance Card</p> Signup and view all the answers

What are the 5 keys to Smith Driving?

<ol> <li>Aim High in Steering 2. Get the Big Picture 3. Keep Your Eyes Moving 4. Leave Yourself an Out 5. Make Sure They See You</li> </ol> Signup and view all the answers

What steps should you take to prepare for the following day?

<p>Ensure all stockroom garments are with your route, Check the late rail, Blend in late pieces and stockroom pieces, Audit bulk load sheet to ensure proper loading, Audit route checking, Validate TruCountService Summary Report, Notify production management of any issues.</p> Signup and view all the answers

What do you look for when auditing your invoices?

<p>Unusual invoice totals, New wearers added the previous week, LR's and 4-week countdown, New install invoices and transferred accounts, Invoices for lost accounts</p> Signup and view all the answers

What is the AWV Catalog Volume minimum expectation?

<p>$300 FS, $600 Uniform</p> Signup and view all the answers

What does TruCount Documentation explain in the SSR?

<p>3 Service Summary Reports</p> Signup and view all the answers

What is included in Invoice Teach-backs?

<p>Material Number, Description, Freq, UF/UD, Qty, Unit Price, Tax, Sold-to, Payer, Ship-to, Bill-to, Insurance</p> Signup and view all the answers

What is material cost?

<p>Amount of money we spend buying garments</p> Signup and view all the answers

How can you reduce material costs as an SSR?

<p>Monitor inventories, check billing accuracy, bill for lost/damaged garments, ensure fair pricing, avoid credits.</p> Signup and view all the answers

What is even billing?

<p>Pricing based on 52-week billing that prevents fluctuations in customer billings.</p> Signup and view all the answers

What are net billings?

<p>The percentage of actual invoiced billings vs.gross billings</p> Signup and view all the answers

What are some ways to minimize the issuance of credits?

<p>Even billing understanding, communicate product shortages, manage inventory, notify about holiday schedules, remind customers about garment returns, ensure pricing fairness.</p> Signup and view all the answers

What steps should you take if a customer has an amount 60 days past due?

<p>Begin NCNS procedures, account is put on hold, clean product is not delivered, dirty products are picked up.</p> Signup and view all the answers

What are the components of the SSR Pay Plan?

<p>Base Pay, Route Commission, Renewal Bonus, Catalog Commission, Sales Leads, Contest Winnings, Growth/Projections Bonus, Premium/Overtime Pay.</p> Signup and view all the answers

What are the fundamental areas to increase business on your route?

<p>Sales Leads, Adds vs.Stops, Reducing Lost Business, Price Increases, Catalog Sales, New Product Offerings.</p> Signup and view all the answers

What is emotional trust?

<p>A customer likes and depends on the SSR and Service Team.</p> Signup and view all the answers

What is rational trust?

<p>Cintas is holding up our end of the agreement.</p> Signup and view all the answers

What is the length of a standard agreement at Cintas?

<p>60 Months</p> Signup and view all the answers

Why don't we wait until the end of term to renew?

<p>To avoid competitive situations that may require decreases in price.</p> Signup and view all the answers

How soon should you renew a customer?

<p>You can renew a customer any time, especially if an additional investment is made; 12-18 months prior to renewal date.</p> Signup and view all the answers

What is our service guarantee?

<p>Paragraph 10 on the back of the service agreement outlines our quality promise.</p> Signup and view all the answers

What is the most important thing to remember for all role plays?

<p>ECIR: Empathize, Clarify, Isolate, Resolve/Respond.</p> Signup and view all the answers

Study Notes

TruCount Documentation

  • SSR must explain three types of Service Summary Reports and three Pick-up Reports to ensure clarity in operations.

Invoice Teach-backs

  • SSRIT is tasked with explaining five specific components of invoices including Material Number, Description, Frequency, Unit Field (UF/UD), Quantity, Unit Price, and related customer information.

Material Cost

  • Refers to the total expenditure incurred in the acquisition of garments for service.

Reducing Material Costs

  • Strategies include monitoring garment inventories, ensuring proper billing for lost or damaged items, and maintaining fair pricing without issuing excessive credits.

Even Billing

  • A pricing structure based on yearly billing to provide customers with stable, predictable costs, reducing fluctuations and unexpected charges.

Net Billings

  • Represents the actual invoiced amount compared to the total gross billings, providing insight into revenue and billing efficiency.

Minimizing Credits

  • Effective methods include ensuring customer understanding of even billing, addressing product shortages proactively, managing inventory to avoid excess credits, communicating holiday schedules, and maintaining equitable pricing policies.

Starting AR Conversations

  • Effective strategies to initiate Accounts Receivable discussions include reviewing invoices, directly asking for payments, leveraging hard work to encourage payment discussions, and summarizing outstanding items.

60-Day Past Due Procedures

  • Initiate NCNS procedures, putting accounts on hold, preventing delivery of clean products until payments are made.

SSR Pay Plan Components

  • Comprises Base Pay, Route Commissions, Renewal Bonuses, Catalog Commissions, Sales Leads, Contest Winnings, Growth Bonuses, and Premium Pay.

Increasing Route Business

  • Focus areas for growth include generating sales leads, managing adds versus stops, addressing lost business, implementing price increases, promoting catalog sales, and introducing new products.

Building Emotional and Rational Trust

  • Emotional trust is based on customer reliance on the SSR and team; rational trust stems from consistent delivery of clean and timely products.

Proactive Trust Building

  • Enhance service scores through consistent performance, developing emotional and rational trust, and focusing on customer satisfaction.

Importance of Market Reputation

  • Significant impact on customer sentiment; negative experiences have broader communicative reach than positive ones, known as the 11 to 3 phenomenon.

Standard Agreement Length

  • Service agreements at Cintas typically span 60 months.

Renewal Timing

  • Early renewal (12-18 months in advance) helps circumvent competitive pressures and potential price reductions.

Service Guarantee Overview

  • Assurance of high-quality textile rental service; unresolved complaints may lead to termination of the agreement if not addressed properly.

Role Play Essentials

  • Follow the ECIR framework: Empathize, Clarify, Isolate, and Resolve/Respond for effective customer interaction.

Handling Late Add-Ons

  • Use empathizing and clarifying techniques to address delays in delivery, seeking proactive resolutions and communication with the plant.

Addressing Fit Issues

  • Empathize with customers regarding garment fit, clarify specifics, assure resolution, and consider proactive steps for improved fit accuracy.

Comfort of Garments

  • Recognize discomfort complaints; clarify details to isolate the issue and reinforce the value of uniform programs.

Cleaning Quality Concerns

  • Apologize for perceived service failures, clarify specifics for resolution, and take proactive steps to educate customers on quality expectations.

Stains on Garments

  • Analyze customer concerns about stains, determining cause, and facilitating follow-up actions for resolution.

Buy-Back Responsibilities

  • Address customer concerns regarding buy-back clauses by clarifying customization details and reinforcing the need for buy-back agreements due to invested resources.

Buy-Out Clause Concerns

  • Clarify and explain the financial rationale behind buy-out clauses, emphasizing the substantial investments made for uniform service.

Contract Signing Hesitance

  • Navigate concerns about long-term contracts by emphasizing the value of gradual investment and service guarantees.

Length of Agreement Concerns

  • Address unease regarding 5-year contracts by explaining the necessity for long-term agreements to manage investment returns and service standards.

Competitive Pricing Discussion

  • Investigate pricing discrepancies across different locations, assuring the customer that fairness and transparency will be a priority in correspondence with other facilities.### Proactive Steps in Service Management
  • Own issues that arise without shifting blame, maintaining control enhances customer relationships.
  • Formulate proactive strategies to solidify customer loyalty and explore additional business opportunities.

Garment and Service Goals

  • Garment LR goal is set at 28%.
  • Shop towel LR goal is established at 35%.
  • Linen LR goal targets 25%.
  • Dust LR goal is maintained at 3%.
  • Net Billings goal is a key performance indicator at 98%.

Delinquent Accounts and Bonuses

  • For Uniform accounts, maintain 3 or fewer delinquent accounts to qualify for full bonus.
  • For FS accounts, the threshold is 6 or fewer delinquent accounts.

Principal Objective of Cintas

  • Exceed customer expectations to enhance long-term value for shareholders and partners.

Elements of Corporate Character

  • Professionalism: Maintain a high level of competence and expertise.
  • Thoroughness: Attention to detail and completeness in tasks.
  • High Principles and Moral Values: Uphold ethical standards and integrity.
  • High Standards of Performance: Strive for excellence consistently.
  • Spartan Approach: Optimize efficiency and simplicity in processes.
  • Enthusiasm: Foster a positive attitude and motivation.
  • Competitive Urgency: Act promptly and decisively in a competitive environment.
  • Positive Discontent: Continuously seek improvement and challenge the status quo.

Required Documents for Drivers

  • Current Medical Examiners Certificate.
  • Valid Driver's License.
  • Current Vehicle Registration.
  • Insurance Card.

Keys to Smith Driving

  • Aim High in Steering: Maintain focus on a clear path ahead.
  • Get the Big Picture: Be aware of the surrounding environment.
  • Keep Your Eyes Moving: Stay alert and monitor all areas.
  • Leave Yourself an Out: Always have an escape plan if needed.
  • Make Sure They See You: Ensure visibility to other road users.

Preparation Steps for Next Day

  • Verify all stockroom garments are assigned to your route.
  • Check the late rail for any outstanding items.
  • Blend late pieces with stockroom items for efficient routing.
  • Audit the bulk load sheet to confirm correct truck loading.
  • Validate routing checks to ensure all accounts and pieces are present.
  • Review the TruCountService Summary Report for accuracy.
  • Communicate any issues to production management for resolution.
  • Go over invoices to identify potential discrepancies.

Invoice Auditing Checklist

  • Look for unusual invoice totals.
  • Confirm any new wearers added during the previous week.
  • Cross-reference LR's and the 4-week countdown.
  • Check for new install invoices and accounts that have transferred.
  • Note invoices corresponding to lost accounts.

AWV Catalog Volume Minimum Expectations

  • Minimum expectation for FS is set at $300.
  • Uniform minimum volume expectation is at $600.

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Description

This quiz explores the structure and benefits of a 60-month service agreement with Cintas. It highlights the importance of mutual obligations and customer satisfaction over the term of the agreement. Understanding these elements is crucial for maintaining a positive business relationship.

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