Challenge: Cut costs to keep a competitive edge
Rising Star, a small casino resort in Rising Sun, Indiana, features the full range of facilities you’d expect in such a place: gaming, hotel, spa, pool, meeting space, five restaurants, large theater, 18-hole golf course. The resort had been an Avendra client until 2006, when a change in corporate structure forced a shift in suppliers. But in April of 2011, Full House Resorts acquired the property, and the gates were thrown open for reevaluating all their relationships.
Cost savings was a huge priority, due to Rising Star’s tight budgets and competition from larger casinos in the Cincinnati area. So the new CFO approached Purchasing Manager Elizabeth Craig for ideas.
Solution: Return to Avendra
Craig was with the casino when they used Avendra; when they were made to switch, “the impact on spending was unfathomable,” she said. And she should know: all purchasing requests are funneled through her. So she knew where she could save money—hotel amenities, lighting, linens, food and beverage, tool and parts, and office supplies. And she knew how to do it. Her #1 recommendation to the new CFO: switch back to Avendra.
Benefits: Better-than-expected cost savings, great service
Since Craig had been an Avendra client, she wasn’t surprised to realize cost savings—especially with 93% participation across departments—but she has been pleased with just how much she’s saved with:
Lighting. This is of course extremely important to a casino. They are trying to follow the route that the online casino take when it comes to saving, especially following the footsteps of playslots4realmoney.com. Rising Star has huge light bulbs and recently switched to LED lights. With Avendra, they saved $1,900 on one light bulb purchase alone, and a whopping $4,000 over just the past two months.
Copy paper. The resort is now saving $20 per box. Cross-department. Housekeeping has been very happy with the cost savings on linens, and F&B has been thrilled with the cost and the quality of items like crab legs (which go fast at a casino buffet).
And service? Craig says all departments have been very satisfied. “Vendors have come in and met with us personally,” she said. She also appreciates the diligence of her rep, the strength of company support, and the ease of the myAvendra system.
Craig feels the switch back to Avendra has been essential in maintaining Rising Star’s position in the competitive casino market.