Rent-A-Center Saves Millions through Cloud Procurement Innovation with Coupa and IBM Smarter Commerce

Fri Mar 22, 2013 7:00am EDT

* Reuters is not responsible for the content in this press release.

Leader in Rent-to-Own Industry Realizes Significant Results Across 4,000 Retail
SOMERS, N.Y. & SAN MATEO, Calif.--(Business Wire)--
IBM (NYSE: IBM) and Coupa Software today announced that Rent-A-Center, Inc.
(NASDAQ: RCII), the nation`s largest rent-to-own operator, has achieved millions
in savings by optimizing and centralizing its purchasing process in the cloud.
Rent-A-Center Saves Millions through Cloud Procurement Innovation via Coupa and
IBM (Photo: Business Wire)

With approximately 4,000 locations and 20,000 employees, Rent-A-Center was
challenged with a highly de-centralized and manual purchasing process with low
employee adoption. In addition, the onboarding of suppliers was extremely
time-consuming and complicated. As a result, the company was not efficient at
consolidating purchasing to influence pricing or optimizing its contract,
invoicing and supplier management processes. 

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 spending by automating how it sources - or finds and
secures materials - for 90 categories of indirect spend, such as store office
supplies. From 2011 to 2012, the company consolidated its supply base, reducing
it by 10 percent, and decreased the number of invoices by 5 percent.
Rent-A-Center is currently saving, on average, 10 percent on the categories it
has automated. 

Mike Wilding, senior vice president of accounting, global controller and CPO for
Rent-A-Center, commented on the company`s success in transforming its
procurement processes, "The IBM and Coupa integration has been fundamental in
driving our positive results as we revamped our procurement efforts. 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 software-as-a-service (SaaS)
model, Rent-A-Center has quickly reduced sourcing costs and cycle times and
increased accounts payable productivity. By subscribing to a SaaS model, the
company has been 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. 

Through Coupa`s intuitive application, Rent-A-Center immediately captures
spending without having to install software at each of its thousands of
locations. The consumer-like online experience helps ensure broad adoption by
letting employees easily enter spending into the system. This provides
management with clearer visibility and control over spending across all its

"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." 

"Our No. 1 focus is customer success," said Rob Bernshteyn, CEO of Coupa. "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. 

About Rent-A-Center, Inc.

Rent-A-Center, Inc., headquartered in Plano, Texas, is the largest rent-to-own
operator in North America, focused on improving the quality of life for its
customers by providing them the opportunity to obtain ownership of high-quality,
durable goods such as consumer electronics, appliances, computers, furniture and
accessories, under flexible rental purchase agreements with no long-term
obligation. The Company owns and operates approximately 3,098 stores in the
United States, Canada, Mexico and Puerto Rico, and approximately 966 RAC
Acceptance kiosk locations in the United States and Puerto Rico. ColorTyme,
Inc., a wholly owned subsidiary of the Company, is a national franchiser of
approximately 224 rent-to-own stores operating under the trade name of
"ColorTyme." For additional information about the Company, please visit 

About IBM

More information on IBM can be found at:
IBM Smarter Commerce
IBM SmartCloud Solutions
IBM Procurement solutions

About Coupa Software

Founded in 2006, Coupa Software is the leading provider of cloud-based spend
optimization software. More than 300 customers in 40 countriesuse the Coupa
suite of cloud applications to amplify their spend power and reduce spending
costs up to 11 percent. Only Coupa provides a true suite of cloud applications
that enables customers to launch the solution immediately and quickly realize
significant savings. Learn more at: http://www.coupa.comor call 650.931.3200.
Read more at our company blog, Making Cents, or follow @Coupa on Twitter.

Photos/Multimedia Gallery Available:

Mike Azzi, 914-766-1561
Coupa Software
Elena Annuzzi, 650-539-3860

Copyright Business Wire 2013