Air Methods

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Air Methods

Air Methods Sets BSM On Auto-pilot for $20 Million in Savings

Air Methods' back office was grounded due to manual processes, no standardized procurement function, and poor spend visibility which led to late payment fees. Until their Senior Director of Business Transformation flew in to revamp their entire procurement system from the ground up with Coupa.

Company Overview
Air Methods is an air medical transport provider that operates over 400 aircraft throughout the US, transporting 65,000 patients a year.
Headquarters
Englewood, CO
Employees
1,000-5,000
 

Value as a Service

4x

Reduction in invoice cycle time

$20M

Saved in first year

43%

Decrease in supplier base

Challenges

Patchwork of backend systems with no standard procurement policies.

Manual processes included 100% paper-based invoicing.

Lack of spend visibility and conciliation with more than 8,400 vendors for 300 locations.

Results

43% decrease in supplier base after consolidation.

$20 million saved in year one against a projected rate of $11 million.

Decreased overdue payments from 5% to 1.8%.

4x reduction in invoice cycle time.

Lowered requisition cycle time from more than 1 week to less than 1 day.

"That changed relationship enabled us to negotiate significant savings in our contracts - $20M in year one and $15M in year two."

– Mike Kingzett, Senior Director of Business Transformation, Air Methods