Saving 9.6% on products and simplifying delivery into airports

"Negotiatus has allowed us to make decisive choices to provide our people with the best tools and our customers with exceptional service."



Tesh Ramsarup, Operations Manager, XpresSpa


Profile


Industry
Spa & wellness

Company size
50 locations (in 21 airports)

Key metrics

First year strategic sourcing savings
$68,000 (9.6%)

Management approvals needed per order
Reduced from 100% to 47%

On-catalog compliance
Raised from 70% to 100%

From our first meeting in Spring 2016 to now, Negotiatus has helped us find savings and solutions to match ever-increasing demand. The knowledge gained over the past 3 years has allowed us to make decisive choices to provide our people with the best tools and our customers with exceptional service — all while being conscientious of spending. While the savings in dollars is clear to see, the immense time-savings for our spa field teams and spa support center cannot be underrated; any opportunity to remove a distraction and focus on our business is a welcome addition.Tesh Ramsarup, Operations Manager, XpresSpa


The problem.

With more than 750 employees across 50 locations in 21 airports, XpresSpa had a very limited number of preferred shipping carriers, brands, products that were authorized at the corporate level in an attempt to reduce the number of managed systems, vendors, and SKUs. Even though the mandate was 100% compliance to these requirements, an audit by Negotiatus revealed an adherence rate closer to 70% due to the difficulty locations had placing and tracking their ordering.

Key obstacles included:
  • Corporate managers and in-store managers had limited purchasing visibility & transparency across locations.
  • Multiple paper trails from multiple vendors.
  • Balancing compliance, savings & technology requirements.


Quick and non-disruptive rollout.

Negotiatus immediately rolled out to each location, targeting cleaning supplies (about 30% of spend) as a low-risk way for employees to gain familiarity. Every in-store manager received their own log-in, verification system, and a training session from a dedicated Negotiatus representative.

Given the rapid 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. Locations and managers were thrilled to order every SKU on one platform, and key operations leaders were given instant logistical relief and complete visibility.

Super-powered ordering.

Negotiatus' platform identified multiple new vendors that adhered 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%).

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 orders over a pre-defined 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 a manual approval dropped from 100% to 47%.

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