ISM Travel & Events. Graham Crawshaw MCIPS Director of Content June 2017
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1 ISM Travel & Events Graham Crawshaw MCIPS Director of Content June 2017
2 Best in Class: What does good look like?
3 Global Network of Procurement Professionals 10,000+ active participants 70 countries represented 15 industry sectors covered 185 events per year 1,100 sets of insights 40 procurement reports per year
4 RoundTables: Regions and Cities North America Boston Chicago New Jersey New York Philadelphia San Francisco Toronto South America Mexico City Sao Paulo Europe Amsterdam Birmingham Budapest Copenhagen Dublin Dusseldorf Frankfurt London Paris Stockholm Warsaw Winchester Zurich Dubai Hong Kong Kuala Lumpur Mumbai Singapore Shanghai Tokyo Asia Australasia Brisbane Melbourne Sydney
5 Our Clients Include
6 Best in Class Why Best in Class? 66 member companies participated Combined travel spend of $8bn Grouped companies into the following categories: Base Stable Leading Progressive
7 Survey Sections 1 - Category management and sourcing 2 Procure-to-pay policy and process 3 - Supplier relationship management 4 - Contracting 5 - Engagement
8 1 - Category Management and Sourcing Entertainment 6% Spend breakdown: Ground transportation 8% Food and drink 8% Airfares 52% Accommodation 26%
9 1 - Category Management and Sourcing Planning the travel strategy Regional and global strategy combined with a TMC relationship 69%
10 1 - Category Management and Sourcing Average business travel spend influenced by Procurement 78%
11 1 - Category Management and Sourcing Managing non-compliance within the travel policy
12 1 - Category Management and Sourcing Approach applied to benchmarking
13 2 Procure-to to-pay Policy and Process Have corporate business travel requirements been consolidated?
14 2 Procure-to to-pay Policy and Process Compliance with using TMCs or preferred suppliers Average transactional cost savings realised by using an OBT 40%
15 2 Procure-to to-pay Policy and Process Employee policy for air travel what is included?
16 2 Procure-to to-pay Policy and Process Travel policy for hotels and accommodation what is included?
17 2 Procure-to to-pay Policy and Process Ground transportation travel policy what is included?
18 2 Procure-to to-pay Policy and Process TMCs being used by participating companies
19 3 - Supplier Relationship Management What is included in a supplier performance management (SPM) programme?
20 3 - Supplier Relationship Management Adopting a supplier relationship management (SRM) programme
21 3 - Supplier Relationship Management Key performance indicators: OBT adoption Telephone / response times Average ticket price IT uptime Market share commitment Target revenue Online adoption percentage / online bookings Customer satisfaction and performance surveys Accuracy of data
22 4 - Contracting Negotiations with global suppliers
23 4 - Contracting The TMC contract
24 4 - Contracting What a Procurement and TMC partnership aims to deliver
25 4 - Contracting Most important requirements from a TMC
26 4 - Contracting Benefits of a Procurement and TMC partnership: Ability to direct travellers to preferred deals Customisable OBT Customised QBRs Innovation Knowledgeable team Quicker implementations Seamless transitions Timely communication TMC account and ops management
27 5 - Engagement 1. Profile your stakeholders 2. Understand their requirements, use their terminology 3. Align procurement activity to their business objectives talk about benefits rather than savings 4. Add value demonstrate knowledge of categories, suppliers and markets 5. Start small, establish credibility, achieve quick wins
28 5 - Engagement Communicating the travel policy
29 5 - Engagement Feedback for business travel or TMC projects?
30 Best in Class leading procurement organisations Summary what does good look like? 1. Travel is one of the highest outsourced categories 2. TMC is the partner for cost containment 3. Characteristics of leading procurement functions: Global strategy, global TMC Stakeholder involvement External benchmarking Compliance SMART KPIs Structured SRM programmes
31 THANK YOU Graham Crawshaw casme.com
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