Eight Sleep is a direct-to-consumer technology company that specializes in smart mattresses and other high-tech sleep accessories. The company’s flagship product, The Pod, offers dynamic temperature regulation and intelligent sleep tracking that optimizes users’ sleep when paired with Eight Sleep’s technology.
As a fast-growing DTC company and industry innovator, Eight Sleep saw huge growth ahead with plans to bring their new Pod 3 product to market, and used Ramp Flex to meet the financial demands of their product launch.
Eight Sleep is an innovator in the technology space, regularly developing ground-breaking sleep optimizing products.
In launching their upcoming Pod 3 product, Eight Sleep needed to build up inventory and cover international shipping costs, but the length of their cash conversion cycle and inflexible vendor terms limited their ability to make inventory purchases and pay for shipping upfront.
Irish Rose, Financial Controller at Eight Sleep, and her team were also tired of the hassle of managing spend, invoices, vendors, and payment terms across multiple solutions. They wanted a way to consolidate all of their finance tools to a single platform to maximize their efficiency and focus their time on their work instead of administrative tasks.
Most available working capital solutions didn’t meet Eight Sleep’s needs. Terms from vendors were too short to align to Eight Sleep’s cash conversion cycle. Archaic processes and inflexible terms forced by traditional banks threatened to take time and energy that Eight Sleep could use to focus on strategic challenges, like upcoming product launches. Plus, these solutions introduced more complexity into viewing and managing Eight Sleep’s cash flow by further splintering the company’s finances across more platforms.
The flexibility and choice across Ramp Flex resonated with Eight Sleep, with upfront options of 30, 60, or 90-day terms and transparent fees, and the ability to better manage relationships with their vendors leading up to their new product launch.
"Flex was a win-win—our vendors are happy because they are getting paid, and at the same time, I was able to meaningfully support our product launch by choosing 60-day terms."
The team was also impressed by the speed and ease of adjusting their bills within Ramp's accounts payable flow. Thanks to Ramp Bill Pay's automated, comprehensive data capture and vendor management capabilities and Flex's intuitive navigation, updating a bill's payment terms takes just a few clicks, with the entire process done in under a minute.
“Identifying the invoice, finding it in Ramp Bill Pay, and flexing it from there, takes all of one minute…it’s only a few clicks and you’re done.”
Plus, with Flex's extended payment terms seamlessly embedded in Bill Pay, the Eight Sleep team was able to streamline their workflows and freed from managing bill payments and terms across multiple platforms. The team saw opportunities for more efficiencies and better insights by bringing card, reimbursements, bill payments, and extended payment terms all to one place.
“It's easier to do everything in one place. I stopped using Airbase to process invoices—it didn't make sense to keep processing invoices through Airbase, because if I process our invoices through Ramp, I have the opportunity to also get extended payment terms in the same platform.”
Within one month of using Ramp Flex, Eight Sleep was able to meet the financial demands of their upcoming product launch by taking control of their cash flow and successfully managing their vendors, all while remaining within 10% of their monthly burn target.
“Flex is a game changer…we can manage our cash better while keeping vendors happy…it saves time, so we’re not focused on administrative tasks, we’re focused on work.”
Loans issued by Ramp Financing Corporation and/or Lead Bank. Visit ramp.com/flex for more info.