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More locations, more control. 

2019 has been pretty good to Planet Fitness. Their revenue jumped 22.7% year over year to $148.8 million to start the year off, and they have opened 65 new gyms during the first quarter with a total of 241 locations over the past 12 months, making for 1,800 total locations. "We once again demonstrated the attractiveness of our high value, low cost welcoming fitness concept and the power of our business model with our diversified revenue streams and strong free cash flow," CEO Chris Rondeau remarked back earlier this year.

Anne Bard is the Purchasing Manager for various locations across the US, and helped me gain some insight into how their trajectory has been so steep. “ We were at 15 clubs or so Planet Fitness locations across Indiana and Michigan, and we had just broken into Canada. Our ordering and our entire life essentially was on Google Drive. We had spreadsheets for every single order that the clubs would place,” Anne explains.

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How Planet Fitness Cut Their Poor Budgets and Bulked up Their Purchase Requisitions

CUSTOMER SPOTLIGHT

OVERVIEW

Company: Planet Fitness is one of the largest fitness club franchises in the world. They are providing affordable access to health and wellness equipment and services globally. 
Headquarters: 
New Hampshire, US
Industry: 
Fitness
Type: 
Service

SPOTLIGHTTALK TO A SPEND CULTURE EXPERT

“We’d do a back order every two weeks, and then we’d do a monthly order and there are four to five orders that encompass that. And then we also do special orders biweekly and uniform orders, too. So I'm the only one who does all the ordering. So it was a challenge for me to be able to keep track of everything and to make sure that everyone was getting what they needed.”

Manually tracking purchases coming in at several local levels from partners like Staples, while also keeping up with proprietary orders that corporate acquired proved to be too manual to keep up with, and “unmanageable” for Anne and her team. We knew that we were going to start growing at a very quick rate. And there was no way for me to be able to keep up with that. And the bigger challenge was that I was going to go on maternity leave. And so some course all was going to have to pick up the slack while I was gone for three months.”

Anne not only had to implement a solution to make her work more efficient, she had to make sure it could be manageable and run in the background during a very important absence. Reflecting on the high stakes, Anne can say now that “Procurify really made that a whole lot easier for them.”

"We had to make it as easy as possible for the clubs because we have a large variety of clubs that have a wide range of number of members,” Anne said. “When we were considering solutions it came down to 3 or 4 products, and the things we were considering was integrations, price points and training and onboarding. In all 3 of those categories Procurify seemed to have the best fit for us.”

By implementing Procurify as a better ordering system and a centralized spend hub, Planet Fitness also improved their approval structure as a result. “Prior to Procurify, clubs literally would just fill their spreadsheet out and there was absolutely no approval structure. If something looked really off, I’d have to email club managers directly and start conversation chains to get to the bottom of things."

With Procurify, the clubs have an approval routing system in place to put the order through an assistant manager and it’s then approved by the branch manager before it even gets to Anne. "I still have that final say if something looks really off but now the clubs have so much more control and visibility into budgets and spend.”

Prior to implementation, Anne and her team met with Procurify Product Manager, Ryan McCutcheon, to outline the full scope of their workflow and design a system that was exactly what they needed.

“He was really great making sure that he understood exactly what our process looked like. I was able to do zoom calls with him share my screen kind of walk him through what the actual process looked like at the beginning. So he understood what we were working with and really what our overall goal was.”

Anne reflects fondly on her time spent onboarding, saying that “the Customer Experience team spent a lot of time on calls between myself, our controller, and our AP people to make sure they had everything they needed and that they were comfortable. The training the clubs got was incredible.”

Things going smoothly were extra important to Anne and her team given some recent mishaps with implementing software. “We had just rolled out this HR software to our clubs a few months ago and the implementation process was a little rocky and cumbersome, so there was some hesitation to rollout another software when it was time to implement Procurify. But the team was just so great that everything went incredibly smoothly.”

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Bespoke approvals for multiple locations.

The fact that I can email purchase orders and push those out in twenty minutes instead of an eight to ten hour time span saves me a ton of time and it makes life a lot easier, and it makes paper trails a lot easier too.

ANNE BARD, PURCHASING MANAGER PLANET FITNESS

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