Eat. Sleep. Work. Life in a man camp can be tough, but it would be even more challenging if the costs of basic supplies that keep these facilities running were to spiral out of control. This leaves many with the question, "how to reduce costs in man camps?"
A "man camp" is a temporary housing facility for workers in resource extraction industries, particularly during economic booms in oil and gas sectors. Because these camps cater to predominantly male transient workers, they range from organized dormitory-style accommodations to informal setups like RVs.
Their remote locations can overwhelm local infrastructure and services (if there are any), which in turn presents significant logistical challenges for operators. Specifically, they must ensure seamless distribution of food, disposables, janitorial supplies, linens and laundry, generators and maintenance, uniforms and PPE, waste management, and small parcel deliveries.
Why Are the Basics so Expensive in Man Camps?
The remoteness of man camps typically means higher costs for two reasons:
- Transportation: Operators charge premium prices to deliver to remote locations, particularly when cold-chain transport is needed.
- Lack of competition: Fewer local stores mean less competition, allowing providers to charge higher prices.
But Remote Shouldn't Mean More Expensive...
Camp management service providers and their clients should not have to pay through the nose to procure the essentials that keep these camps running. Providers who service two or more camps know that centralizing procurement to access economies of scale can slash costs. But what if they banded together with thousands of other businesses to access otherwise unattainable supplier discounts across major indirect categories?
That's where group purchasing can be a game changer. In fact, by pooling resources and negotiating better rates collectively under the umbrella of a GPO like Una, operators can therefore significantly reduce costs while still maintaining the quality and availability of necessary supplies.
Eight Ways Man Camps Save with Group Purchasing
Here are eight indirect categories where Group Purchasing can really make a difference for camp management service providers:
- Food distribution: Mainly due to transportation costs, food expenses can skyrocket and options can be limited in remote camps. Group purchasing lets service providers buy in bulk and access significant discounts with transport providers, cutting down prices and expanding menu choices for workers.
- Disposables: Finding disposable items in isolated locations can be a hassle and expensive. With group purchasing, service providers can stock up at lower prices, ensuring a consistent supply without the hefty markup.
- Janitorial and sanitation supplies: Naturally, keeping things clean in man camps is crucial, but it can get pricey. However, group purchasing helps service providers secure better deals on cleaning supplies, so that they can maintain hygiene without overspending.
- Linens and laundry services: Quality linens and laundry services can be hard to find and expensive in remote spots. Group purchasing opens the door to volume pricing for linens and laundry services, enhancing comfort and hygiene for workers while keeping costs in check.
- Generators and Maintenance, Repair, and Operations (MRO): Reliable power is a must, but it can be costly in remote settings. GPOs allow camp service providers to buy generators and MRO supplies in bulk, lowering expenses and keeping operations running smoothly.
- Uniforms and Personal Protective Equipment (PPE): Sourcing uniforms and essential PPE can be tricky and pricey in isolated areas. Group purchasing helps service providers negotiate better deals, ensuring workers are safe and compliant without breaking the bank.
- Waste management: Effective waste disposal is essential but can be complicated and costly in remote locations. Group purchasing makes it easier to negotiate contracts with waste management services, helping service providers save money and manage waste responsibly.
- Small parcel deliveries: Getting supplies delivered on time can be a challenge in remote areas and often comes with a hefty price tag. GPOs allow providers to consolidate orders and negotiate shipping rates, making it easier and more affordable to get what they need.
Speed to Savings
With Una's pre-negotiated discounts, camp management service providers can enjoy a turnkey solution that accelerates savings. These established agreements mean that camps don’t have to spend time negotiating prices individually; they can tap into significant savings right away. This speed to savings not only boosts efficiency but also allows camps to focus on what really matters: providing a comfortable and safe environment for their workers, rather than worrying about how to reduce costs in man camps.
Ready to Get Started?
Join now or book a no-obligation discovery call to learn how group purchasing can work for camp management service providers. Membership is always free and there are never any purchasing requirements or exclusivities.
