IBM Tops Middleware Market 12 Years in a Row
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 its spending by automating how it sources—or finds and secures materials—for 90 indirect spend categories. From 2011 to 2012, the company reduced its supply base by 10 percent and decreased the number of invoices by 5 percent. Rent-A-Center is currently saving, on average, 10 percent on the indirect spend categories it has automated. "The IBM and Coupa integration has been fundamental in driving our positive results as we revamped our procurement efforts," Mike Wilding, senior vice president of accounting, global controller and CPO for Rent-A-Center, said in a statement. "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 SaaS model, Rent-A-Center quickly reduced sourcing costs and cycle times and increased accounts payable productivity. By subscribing to a SaaS model, the company was able to accelerate its cost savings and return on investment, and easily increase capacity for large sourcing events and peaks in activity. The IBM Emptoris procurement suite is part of IBM's Smarter Commerce initiative, which is designed to help companies manage their supply and demand processes through intelligent automation. The solutions, which can be deployed either on premise or via SaaS or Cloud delivery, are components of IBM's growing SmartCloud portfolio of more than 70 SaaS and business process as a service (BPaaS) solutions."Our No. 1 focus is customer success," Rob Bernshteyn, CEO of Coupa, in a statement. "The results that Rent-A-Center achieved are concrete examples of what can be done when there is a common vision between our customers, our partners and ourselves. Rent-A-Center reached all the goals we collectively hoped for—better visibility into indirect spend, substantial cost savings and increased business efficiencies. We look forward to seeing more customers unlock the value of spend optimization with IBM and Coupa." Rent-A-Center is expanding into other countries and has opened 90 new stores in Mexico between 2010 and 2012. The company uses Coupa and IBM's procurement software for local supplier sourcing and procurement in Mexico as well, which helps minimize costs.
"IBM and Coupa have helped Rent-A-Center streamline and control supplier management and reporting in one central solution," said Pat Quirk, vice president, IBM procurement solutions. "Rent-A-Center is an example of how SaaS can speed delivery of services and eliminate technical complexity found with other solutions."