Fitness Center Chain Achieves $100,000+ on Jan/San Supplies with Procure Analytics

Overview

A privately owned fitness center chain operating 287 clubs across 11 states. They are the second largest fitness center company in the country.

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Challenges

As with most companies (especially other gym and fitness companies in their space), they were ravaged by the COVID-19 pandemic in mid 2020 and had to shut down a large number of their locations as a result. Meanwhile, their operating costs continued to increase as they had to meet higher sanitation requirements once gyms were allowed to reopen.

The already stretched-thin procurement team did not have the bandwidth to run an RFP on Jan/San supplies and engaged Procure Analytics to help identify and drive actionable savings opportunities.

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Approach

The Procure Analytics team jumped in and immediately went to work, evaluating the company’s top categories and items that represented 80% of their spend to find cost-effective alternatives that met or exceeded the specs from the current items being used.

Watch the quick video below to see our approach to MRO.

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Results

On the company’s market basket of items representing $855,000 in spend, PA ws able to drive $105,000 (12%) in savings via its MRO program for general industrial supplies. The approach and results proved that, when time is of the essence, leveraging a GPO is a faster and more advantageous alternative to the traditional RFP.

Hear success stories from other PA members.