ISM Travel & Events Graham Crawshaw MCIPS Director of Content June 2017
Best in Class: What does good look like?
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
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
Our Clients Include
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
Survey Sections 1 - Category management and sourcing 2 Procure-to-pay policy and process 3 - Supplier relationship management 4 - Contracting 5 - Engagement
1 - Category Management and Sourcing Entertainment 6% Spend breakdown: Ground transportation 8% Food and drink 8% Airfares 52% Accommodation 26%
1 - Category Management and Sourcing Planning the travel strategy Regional and global strategy combined with a TMC relationship 69%
1 - Category Management and Sourcing Average business travel spend influenced by Procurement 78%
1 - Category Management and Sourcing Managing non-compliance within the travel policy
1 - Category Management and Sourcing Approach applied to benchmarking
2 Procure-to to-pay Policy and Process Have corporate business travel requirements been consolidated?
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%
2 Procure-to to-pay Policy and Process Employee policy for air travel what is included?
2 Procure-to to-pay Policy and Process Travel policy for hotels and accommodation what is included?
2 Procure-to to-pay Policy and Process Ground transportation travel policy what is included?
2 Procure-to to-pay Policy and Process TMCs being used by participating companies
3 - Supplier Relationship Management What is included in a supplier performance management (SPM) programme?
3 - Supplier Relationship Management Adopting a supplier relationship management (SRM) programme
3 - Supplier Relationship Management Key performance indicators: OBT adoption Telephone / email 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
4 - Contracting Negotiations with global suppliers
4 - Contracting The TMC contract
4 - Contracting What a Procurement and TMC partnership aims to deliver
4 - Contracting Most important requirements from a TMC
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
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
5 - Engagement Communicating the travel policy
5 - Engagement Feedback for business travel or TMC projects?
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
THANK YOU Graham Crawshaw graham.crawshaw@casme.com casme.com