Carmike Cinemas Inc., which operates 276 theatres and 2,901 screens in 41 states, was having difficulty with its purchasing process and supplier relations. It also didn’t have a means to effectively tie its inventory management with other processes involving its suppliers and point-of-sale systems.
To address the problem and improve its account-payable program, the company recently signed a deal with ReactorNet to implement its Cinema Solutions eProcurement platform to automate the procurement process across its entire operation.
Carmike’s operations generate about $341 million annually, and its theaters draw about 29.2 million consumers each year, especially in midsize, nonurban communities. That makes concession sales especially important, as well as supplier management.
Cinema Solutions is a SaaS-based, procure-to-pay management system designed for buyers and suppliers in the cinema industry. It automates traditional procurement processes to help cinemas streamline their workflow purchasing cycle, from purchase to pay. In doing so, ReactorNet noted in the contract announcement, they may to reduce unnecessary spend, enhance spend visibility, increase purchasing control, enforce security and compliance, and improve cost savings.
According to ReactorNet, Cinema Solutions will help Carmike establish a documented and automated purchasing process that includes mandated policies and internal controls to improve workflow and order accuracy. The product’s Inventory Management module also will enable Carmike to incorporate inventory tracking into the Cinema Solutions Workflow.
"This integrated approach to inventory management closes the loop between purchasing, accounting, supplier systems and point-of-sale, providing a real-time insight into inventory levels and costs,” ReactorNet said.
By using the platform’s catalog-management capability, Carmike will have pre-set catalogs alongside pre-approved suppliers and contract pricing, structured allowances based on spend categories, and recommended ordering processes. “As a result, Carmike will be able to manage and update the catalog process with suppliers in real-time, giving [it] complete control over the ordering process while keeping in compliance with corporate procurement policies and procedures,” ReactorNet said.
Rob Lehman, Carmike Cinemas vice president of food and beverage, says the company is well underway with the Cinema Solutions implementation and has made great strides in streamlining its ordering, receiving, and inventory management side of the supply chain.
"The fact that ReactorNet delivers such a robust spend-management platform tailored specifically for our industry allowed us to move forward quickly and efficiently,” he said in the announcement.
Cinema Solutions works as a collaboration platform for both buyers and suppliers to jointly manage the purchasing process, according to ReactorNet. “Lack of collaboration has consistently been named one of the chief obstacles to successful eProcurement, the company notes on its website.
"With Cinema Solutions, this obstacle is dealt with head on by creating a universal platform for the cinema industry where buyers and their suppliers work together to co-manage the purchasing process. The immediate benefits to collaboration are accuracy and customer loyalty."