XpresSpa saves 9.6% on products and simplifies delivery into airports
How XpresSpa sourced $68,000 in product savings and improved its approval process and budgeting with Order.co.
XPRESSPA AT A GLANCE
First year strategic sourcing savings
Management approvals needed per order
On-catalog compliance
Tesh Ramsarup, Operations Manager at XpresSpa, is responsible for managing the operations across the company, as well as overseeing cost management initiatives and purchasing.
The problem
With more than 750 employees across 50 locations in 21 airports, XpresSpa had a very limited number of preferred shipping carriers, brands, and products authorized at the corporate level to reduce the number of managed systems, vendors, and SKUs. Even though the mandate was 100% compliance with these requirements, an audit by Order.co revealed an adherence rate closer to 70% due to the difficulty locations had placing and tracking their ordering.
The solution
XpresSpa partnered with Order.co in September 2016 and immediately rolled out to each location. XpresSpa started by targeting cleaning supplies (about 30% of spend) as a low-risk way for employees to gain familiarity. Every in-store manager received their log-in, verification system, and training session from a dedicated Order.co representative.
Given the early success, XpresSpa decision-makers pushed forward on a full-spend rollout, which was accomplished within one week and included both online e-commerce vendors and vendors that required emailed purchase orders.
$68,000 (9.6%)
First year strategic sourcing savings
Reduced from 100% to 47%
Management approvals needed per order
Raised from 70% to 100%
On-catalog compliance
The outcome
Super-powered purchasing
After the rollout, locations and managers expressed how thrilled they were to order every SKU on one platform, and key operations leaders were given instant logistical relief and complete visibility.
Order.co’s platform identified multiple new vendors that adhered to airport security standards, could deliver on logistical necessities and maintained preferred brands & products. As a result, year-one product savings amounted to over $68,000 (9.6%).
Streamlined approvals and budgeting processes
In addition, corporate managers were given a single platform to manage approvals. Budgets were set for locations to keep spend in check, and approvals were only needed to verify purchases over a predefined monthly budget, product category budget, or vendor-specific budget. As a result, on-catalog compliance grew from 70% to 100%, and the number of orders needing manual approval dropped from 100% to 47%.