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22 June 2012 | Kamalpreet Badasha
Health club operator Virgin Active has saved £150,000 on a range of spend categories by implementing an e-sourcing system.
The web3 e-sourcing solution from Wax Digital uses electronic auction and tendering software to negotiate deals across a number of spend categories, including stationery, water treatment services and towels, which saved the company an average of 17 per cent.
Virgin Active has consolidated its spending and supplier base having acquired Esporta Health Clubs last year. The merged business serves more than 1 million members worldwide and has benefited from increased spending power because of this. The Virgin Active procurement team are now also able to use electronic auctions for selling items such as reconditioned gym equipment.
“I was determined, following a poor experience with other sourcing technology providers, that the solution we brought into Virgin Active would provide a highly intuitive interface for both buyers and suppliers” said Steven Colquhoun, head of procurement at Virgin Active.
Virgin Active will also implement the DU360 spend analysis software to identify where sourcing could be made more efficient.