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Artificial Intelligence for Commercial Laundry Route Operators

A 4-Part Series by Trevor Hendricks

By Trevor Hendricks

Part 1 - From AI to Assistant

I’m Trevor Hendricks (LinkedIn) and I’ve been designing and writing software for most of my life. I want to offer a practical viewpoint on Artificial Intelligence and its applicability to commercial laundry route operators in particular.

My view is this, humans create tools often called machines for their own purposes and evaluate their usefulness in terms of how well they meet the purpose. Simply put, we use tools and if they work for us, we keep using it until something better comes along.

AI is the latest and greatest of our tools and we must keep in mind that it’s a tool. Some of us are old enough to remember when computers threatened our lives, the robots were going to take over. Calculators were going to make everyone stupid. Television was going eat our kids’ brains. Social media is toxic. The internet is dangerous. All of this is true and false, in a given context.

Context, is how we select our tools. It defines what we’re talking about. To cut down trees we select tools like axes and chainsaws. Your calculator, Excel or AI isn’t going to add to the pile of lumber but what they can do is help add to the pile of money. That is if, the AI tool has been trained properly and if you know the right questions to ask. Effective use of the tool is incumbent on the user. Whacking a chainsaw against a tree as you would an axe is an indictment of the user not the tool. You have to know what you’re asking before any answer your tool gives can help you.

To make AI useful in a given context it must be trained. To do that effectively, all data that’s related to the topic must be available. The AI models commonly available are generally trained on data available from the internet. In this sense, AI is a search engine on steroids and will yield nothing more than what’s already available.

To be useful to businesses such as route operators, the AI will need access to data from that market. The more sources and detail the better. That data becomes the basis of the training the expert will provide the AI. The expert designs the model that represents the business, so naturally their experience is the utmost importance. Still the AI will only understand the route operator business; it won’t understand your business without your data. This is what differentiates AI from your assistant.

In part 2, I go into detail on what to look for when selecting and assistant.


Part 2 – Selecting the Assistant

In the first part, I talked about taking a business, such as a route operator, from generic AI to Assistant. In this part I’m going to drill down on how to do that.

In business, competitive advantage is the object of the exercise, how to get it and keep it. Profits and client retention are the indicators of success.

Context is how we select our tools. In this case, we’re talking about software. In order to qualify as an assistant the AI would need to be able to get answers to questions that you’ll ask. It should also be able to make suggestions. It should be able to use your current data. Take note, AI can generate incorrect or misleading responses which are called hallucinations. These errors can happen for various reasons, such as limited training data, poor model architecture, or ambiguous input.

Next you should evaluate the answers it gives to key questions. The more clearly you ask the question, the better the response will be. That’s because you’ll be reducing the ambiguity. The quality of the data and model that the assistant is trained on determine how specific an answer and suggestions it can provide. For example, an assistant trained only on publicly available data and models cannot be expected to provide answers specific to your business. Without your data, it cannot provide answers to simple data-based questions like what’s my daily collection average? Who is my best customer? It also cannot answer questions to unstructured data sources like your contracts or customer email feeds. Finally, if the model is not based on your business, the value of the answers is limited. Delivery routes, vending routes, logistics and commercial laundry route operations are similar to some degree however; when you’re relying on the answers for profits and client retention, you’ll want the assistant to be talking about your business.

Once your questions are answered, you’ll need to have the confidence in them to apply it to your business. That’s not as easy as it sounds because it requires commitment and action on your part. Knowing what to do is not the same as doing it.

In part 3, I go through the specific questions you should ask.


Part 3 Asking your assistant questions.

In the previous parts, I talked about what AI is and what to expect from it. Context is what we’re talking about. The data and model define the quality of the answers we can expect. The specificity of the questions you ask will determine how actionable the answers are.

In this part, I drill deeper on the key questions route operators usually ask to improve profits and client retention. Below I have listed some of the most common questions asked and the data sources that need to be accessed to get actionable answers.

Assuming the data is available, the model is used as a framework for formulating the answers. How well the expert who built the model understood the route operator business determines how the assistant will interpret the data. Poor models will talk about delivery and pick up routes rather than service and location-based revenue collection. Unless the model is based on the route operator business, contract settlement will be rudimentary.

Ideally, there will be mechanisms to update the model as well as the data. This ensures that the assistant can respond to changing business conditions.

In Part 4, I suggest questions commercial laundry route operators should ask.


Part 4 Suggested questions

  1. Customer Mix & Retention
    • Who are my most profitable customers? Your accounting system doesn’t have the data. Its context is limited to money.
    • Which customers are at risk of leaving? Your CRM doesn’t have all the data. You need something to analyze your actuals, contracts, leases, emails and performance.
    • Are there untapped customer segments I can serve? You need to connect your route management system, CRM and accounting.
  2. Service Efficiency
    • Which routes or customers are causing inefficiencies (extra stops, delays)?
    • Are my service and collection schedules optimized? The answer to this is almost certainly no which should lead to the follow-on question why?
    • How can I reduce time, fuel, or labor costs on my service routes? To answer effectively, a source identifying reduce time, fuel, or labor costs seems obvious.
  3. Contract Compliance & Execution
    • Are all customers complying with contract terms (volume, frequency, payment)? You can only know with certainty if the assistant is answering based on facts.
    • Are we performing services and collections according to contracted terms (timelines, quality)? Again, where is this data in your environment?
    • Do our contracts include clear provisions for extra charges, penalties, or price adjustments? Are we deducting processing fees? Are there timelines available.
    • How often do contract breaches or disputes occur, and what impact do they have on profit and client retention?
    • Are we tracking performance against contract metrics, and identifying gaps?
    • When do contracts renew or expire, and are we proactively managing negotiations for best profitability?
  4. Pricing Analysis
    • Are my rates competitive and profitable? You’ll need access to competitive rates.
    • Can I increase prices for premium services or rapid service completion?
    • Do discounts or special offers truly generate repeat business and higher margins?
  5. Volume & Utilization
    • Can I fill extra capacity on my vehicles by adding more stops or customers?
    • Are there low-volume accounts that should be upsold or discontinued?
  6. Inventory & Costs
    • Is my inventory loss or damage eating into profits?
    • Are my suppliers providing the best rates and quality?
    • How much do I spend on maintenance and supplies, and can it be reduced?
  7. Technology & Automation
    • What manual tasks can be automated to save labor costs?
    • Are there software or hardware upgrades that will provide a measurable ROI?
  8. Sales & Marketing
    • Which marketing efforts generate the most profitable leads?
    • Are my sales reps focused on high-value targets or spreading efforts too thin?
  9. Customer Experience/Feedback
    • What are the most common customer complaints and how do they impact repeat business?
    • What features or services would customers pay more for?
  10. Employee Empowerment & Labor Effectiveness
    • Are my employees able to make better decisions with the information provided by our systems?
    • What low-value, repetitive tasks can be automated or assisted to allow staff to focus on higher-value work (like customer service, cross-selling, or creative problem-solving)?
    • Can AI provide real-time, actionable insights to route drivers, sales reps, or technicians to help them prioritize their day and respond to changing conditions efficiently?
    • How easily can employees access performance metrics (e.g., stop times, customer satisfaction, completion rates), and use this visibility to take ownership of their results?
    • Are there collaboration tools or knowledge-sharing platforms in place so issues, best practices, and feedback flow quickly between field and office staff?
    • How can AI help forecast labor needs, optimize scheduling, and reduce overtime or downtime?
    • Is the system enabling employees’ continuous learning (not just compliance), by suggesting training based on their performance, role, or new technologies?