As a specialty retailer with more than 330 stores in 14 different store formats, this retailer has its work cut out in navigating complex procurement requirements. And, with over half of their stores operating in airports, having inventory arrive on-time and in the correct location is a significant logistical challenge. With disparate procurement systems in place and a sparse number of suppliers, store managers would often buy supplies off-contract at retail prices costing the company time and money.
The variables in play are “tenfold,” a VP of Purchasing told Varis regarding procurement at airports and getting inventory through airport security. Different types of locations, whether it is a full-service bar and restaurant, fashion, gift shop or retail store, were using different vendors and platforms for procurement, making it difficult to manage and budget.
“We were struggling with procuring across multiple platforms. Everybody was able to order, it was a real drain on our controls and a strain on our time when ordering from so many different places.”
There were four specific pain points facing the retailer in their procurement process.
- Lack of purchasing controls allowed employees at their 300+ stores, distributions centers and corporate offices to place orders.
- Sparse number of suppliers and catalog options made finding what was needed to run the stores challenging.
- Existing ordering process was hard to use, hard to manage and difficult to track.
- Lackluster pricing and slow deliveries encouraged off-contract and over budget spending.
“There was a real lack of understanding from our team in the field, they didn’t know their own budget or how to simply procure an item.”
Unifying different suppliers into a single platform
The Varis purchasing platform created a solution that not only alleviated actual purchasing process woes but also introduced the retailer to new suppliers that offered quality product selection at better pricing. By consolidating all their suppliers onto the Varis platform, this specialty retailer brought their existing suppliers into one easy-to-use platform—then added Varis’ managed suppliers for additional category and product depth.
This made it easier for employees to find and buy the things they needed to do their jobs, reducing off-contract spending and employee frustration.
“It was clear from the first call with Varis that our procurement could fall under a single umbrella. One of the best parts is that Varis introduced us to new suppliers who we’ve never done business with and have provided us with great cost savings. In a lot of cases, we’ve upgraded or improved the product at a cost savings.”
Rollout of the Varis platform was done in two steps:
- An initial “soft launch” that included testing with a group of experienced store managers and twice-a-week meetings with the Varis team.
- Full rollout of the platform to all store managers. Total deployment took just 4 weeks.
“Feedback was great, our team was pleased with their ability to go in and procure product. Varis has made us much more dynamic with procurement.”
Varis provided the tools needed for store managers to comparison shop, find the right supplies and assure spend visibility and budget control.
“The ordering process became much simpler. We have achieved the cost savings we were looking for and improved employee satisfaction. The team enjoys knowing they have ease and convenience at their fingertips.”
