LuggageHero: Scaling through finance automation with Corpay One
LuggageHero, headquartered in Denmark, is a network of short-term luggage storage options in shops, cafes, hotels and more. Their platform and network of storage options empower travellers to explore more conveniently - without struggling to find a storage locker or dragging a heavy suitcase around.
They've got over 250,000 users in 40+ cities around the globe.
We met with co-founder and CEO Jannik Lawaetz to learn more about the value finance automation brings to the LuggageHero team.
Why LuggageHero chose finance automation
LuggageHero has been using Corpay One since 2018.
In a year, they quadrupled the size of their team and felt the daily growing pains of approving and paying bills manually. LuggageHero was proliferating, expanding around the world. Regardless, growing as an organization means increasing expenses and, therefore, increasing bills that need to get paid.
Despite their internal approval processes, they often paid the same bill twice. Team leaders were forced to spend their time on tactical things, like manually approving invoices, rather than focusing on strategic initiatives.
To bridge the gap, they hired a freelancer a few hours a day to double-check their bills and use an online banking system to complete payments. When they switched to Corpay One, they no longer needed someone to oversee incoming bills and outgoing expenses.
Automated accounts payable
When LuggageHero adopted Corpay One, they reduced bookkeeping and accounts payable by 20 hours per week. That's a 90% decrease in what they would have otherwise spent on this kind of work for a company their size.
Their team has been using Corpay One's Workflows function to automate expense approvals, bill categorization and payments. From there, payments are made through Corpay One and automatically recorded in their accounting software.
LuggageHero is also using Corpay One's Slack integration to automate further and simplify expense approvals. This integration allows expenses to be approved, declined or followed up on - without ever leaving Slack.
"Our accounts payable is automated, and it's amazing - one of the best business decisions we've made," Jannik says.
Plus, Corpay One handles international payments.
For an international operation like LuggageHero, it's essential to have a seamless way of sending funds to vendors across the globe while keeping books organized and funds accounted for.
Optimizing through finance automation
As LuggageHero enters new markets and works with new contractors, they can simplify their bill pay process by giving contractors their Send&Scan Address.
To help organize their accounting system and measure expenses by region, they enter each new city as a department in Corpay One. This helps the team stay organized and gives their leadership valuable insights into operational setup costs and how those costs vary from city to city. These are crucial metrics for a growing organization.
On top of solidifying a more robust financial reporting structure, Corpay One has relieved a lot of the day-to-day stress of running a business for Jannik and his team.
Corpay One has eliminated the risk of data entry errors for LuggageHero. They no longer need to worry about manual typing mistakes, duplicate bills and inefficient chat communication.
"This relieves a significant amount of workload and worries for me. It's become increasingly easy to onboard new contractors and employees since our accounts payable processes are clear and concise," Jannik says.