Centralizing purchasing to eliminate an average of $50k in monthly rogue spend

"Negotiatus has allowed us to essentially eliminate all unapproved spending"

 

stefanie

Stefanie Teintze, Facilities and Property Management Specialist, CorePower Yoga

Profile

 

Industry

Health & Wellness

 

Company Size:

Over 200 locations nationwide

 

Key Metrics

 

Average monthly rogue spend eliminated

$50k

 

Unapproved spend

$0

 

Vendors Consolidated 

20

 

Monthly Invoices

1

 

Line-level visibility

100%

 

Annual cash savings

$55,000

Meet Stefanie Teintze, Facilities and Property Management Specialist at CorePower Yoga
CorePower Yoga (CPY) is one of the largest yoga chains in the US, with a network of over 200 studio locations nationwide. Stefanie Teintze works as a Facilities and Property Management Specialist at their headquarters in Denver, CO under the Operations-Facilities department. In this role, she is responsible for all things related to supplies, including procurement, vendor communication, and managing CPY’s supplies ordering platform for all 176 corporately owned studios.
The Problem
We had no control or visibility into what was being ordered until after we got an invoice.
Prior to COVID-19, CPY was growing at an extremely fast rate, opening on average 20 new studios a year. However, their decentralized purchasing process was causing both the Operations and Finance teams tons of headaches. Without a streamlined solution in place, Stefanie describes the “suboptimal” scenarios of the past.

Stefanie says, “we had no process or system to manage spend at all of our locations. Each location was making their own spend decisions and regularly going over budget. We had no visibility or control of spend, and invoice audits showed we were averaging close to $50k in unapproved spend monthly. To compound matters, because each location was ordering from dozens of vendors, our finance team was overwhelmed by the amount of invoices they had to process resulting in late payments.”
The Solution
We decided to move forward with Negotiatus because it was easy to use and learn.
To support their ambitious growth plans and address issues in the purchase-to-pay process, CPY partnered with Negotiatus in the fall of 2019.

“We decided to move forward with Negotiatus because it was easy to use and learn. There were also numerous customization options to fit our needs,” adds Stefanie.

CPY first started using the Negotiatus platform within their Facilities department for special orders and studio remodeling projects. “Soon after getting comfortable with the platform and seeing the potential for their supplies program, CPY worked with the Negotiatus team to build out customized controls, approvals, and consolidated invoicing. Shortly thereafter, we were utilizing Negotiatus as our main supplies ordering platform for all CPY studios.” Stefanie says.

In a short amount of time, CPY was able to take a completely decentralized purchasing process that involved hundreds of purchasers and dozens of vendors and bring it all on to Negotiatus.
The Results
Negotiatus has allowed us to essentially eliminate all unapproved spending
Monthly rogue spend reduced from an average of $50k to $0

Using Negotiatus, CPY implemented a system where instead of each individual store manager deciding what to purchase on their own, every purchase made at any CPY studio would be routed to Stefanie for approval.

“By implementing controls and approval processes, Negotiatus has allowed us to essentially eliminate all unapproved spending, which had gotten as high as $50k per month,” Stefanie explains.

Smarter spend decisions, $11,000 in monthly savings on products

Having the right data readily available is key to making smart decisions for any company, and Stefanie knew this was missing prior to implementing Negotiatus. “Now that we have order visibility with Negotiatus, we can run reports and review analytics to better project future spend based on past and current ordering trends. This has been extremely useful for purchasing PPE throughout COVID,” Stefanie says. Even better, through Negotiatus’ Strategic Sourcing, CPY is saving upwards of $11,000 per month on the products they purchase, more than they spend on the platform itself!

Less time spent on AP

Time spent on AP is a real cost for any finance department. At CPY, Stefanie explains that “Because we had so many separate vendors and orders, this resulted in separate invoices which created additional work for AP. Our AP department then had to process numerous invoices weekly, with differing payment terms per vendor.” With Negotiatus, CPY now receives one invoice from Negotiatus across all of their vendors, drastically reducing the burden on the finance team.

Dedicated Support

With one person overseeing the purchasing for nearly 200 locations, Stefanie knew she needed a true partner in delivering quick, accessible support. She found this in the Negotiatus support team. Stefanie adds, “we also utilize the Negotiatus support team when the occasional order issues arise, things like missing tracking or missed deliveries, and they work the issue out with the vendor directly on CPY’s behalf. Having the support team available is a huge help and saves me from having to be the single point of contact for questions and order support.”

Words of advice from Stefanie

“I’d say go for it.”

“The platform itself is incredibly easy to use and even if you are not tech savvy, it is very intuitive! The cost savings, order visibility, and linked tracking are already huge benefits, but the additional client support and customization options for controls, approvals, and invoicing is what makes Negotiatus so great! I’d say go for it.”

Give power to your purchasers and control to your C-Suite.

Instantly link vendor accounts and get up and running on Negotiatus in less than 24 hours.