IBM (NYSE: IBM) and Coupa Software today announced that Rent-A-Center, Inc. (NASDAQ: RCII), the nation’s largest rent-to-own operator, has achieved millions in savings by optimizing and centralizing its purchasing process in the cloud.
Rent-A-Center Saves Millions through Cloud Procurement Innovation via Coupa and IBM (Photo: Business Wire)
With approximately 4,000 locations and 20,000 employees, Rent-A-Center was challenged with a highly de-centralized and manual purchasing process with low employee adoption. In addition, the onboarding of suppliers was extremely time-consuming and complicated. As a result, the company was not efficient at consolidating purchasing to influence pricing or optimizing its contract, invoicing and supplier management processes. Tasked with revamping the entire procurement process for greater efficiency and savings, Rent-A-Center relied on the combined power of procurement solutions offered by IBM Smarter Commerce and Coupa to streamline its spending. As a result, between 2010 and 2012, the $3 billion rent-to-own retailer increased visibility into spending by automating how it sources – or finds and secures materials – for 90 categories of indirect spend, such as store office supplies. From 2011 to 2012, the company consolidated its supply base, reducing it by 10 percent, and decreased the number of invoices by 5 percent. Rent-A-Center is currently saving, on average, 10 percent on the categories it has automated. Mike Wilding, senior vice president of accounting, global controller and CPO for Rent-A-Center, commented on the company’s success in transforming its procurement processes, “The IBM and Coupa integration has been fundamental in driving our positive results as we revamped our procurement efforts. A major part of our transformation focused on increasing productivity by automating manual processes like invoicing and contracts. We are very pleased with our savings to date, and we are on track to achieve our savings targets over the next few years.” Using IBM Emptoris capabilities delivered via a software-as-a-service (SaaS) model, Rent-A-Center has quickly reduced sourcing costs and cycle times and increased accounts payable productivity. By subscribing to a SaaS model, the company has been able to accelerate its cost savings and return on investment, and easily increase capacity for large sourcing events and peaks in activity.