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.

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.

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.

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.