PROCUREMENT


The clear benefits of cohesive travel procurement I


t may seem strange to talk about learning lessons for rail travel in the fall out from the volcanic ash crisis, but for procurement specialists the disruption proved the value of a managed approach to corporate travel.


As travellers scrambled to switch from domestic flights to the UK rail network, those with access to online booking tools not only secured ever-diminishing capacity on the most popular rail routes, they did so cost effectively as a result of policy compliance.


As Jon Reeve, trade relations director at Capita Plc’s


subsidiary Evolvi, the online rail corporate booking and fulfilment service, explains, public sector organisations with relationships with travel management companies (TMC) were first in the queue to grab the available seats.


“What the crisis proved once and for all, if it were needed, was the way in which technology has become such an integral part of corporate travel.


“At Evolvi, we noticed an immediate spike in train booking activity as soon as airspace restrictions were applied, with TMCs and their customers using online tools to book seats on a train network that was itself under incredible pressure.


“Ticket fulfilment through all channels reflected significant increases and the impact of TMCs and their public sector customers having on-site ticket printing capability was particularly significant. In addition, ticket on departure (TOD) functionality, which enables tickets booked online


Jul/Aug 10 • •


• •


tend to be the most expensive. Limiting first class journeys by setting minimum trip duration rules


Automating notification of declined fare savings opportunities


Capturing declined versus accepted fare savings Instigating a “lowest fare” only mandate, for example taking two singles if cheaper than a return ticket


• • •


Collecting multi-modal environmental impact data Alerting line managers on non compliant purchases Automating cost centre attribution


The wall mounted kiosk is demonstrated as an alternative to the desk top self ticketing option from Evolvi


to be retrieved on-platform, allowed many thousands of corporate travellers to change travel mode instantaneously.


“Critically, all this was achieved in line within travel policy parameters defined by procurement departments so cost effectiveness was not sacrificed in the face of expediency.”


Travel policy compliance is at the centre of effective corporate travel procurement – setting the boundaries within which bookings are made by embedding travel rules into the booking system...and reporting on any exceptions.


This approach chimes well with the public sector’s pressing need to leverage optimum return for available budget. Self booking tools such as Evolvi are now a growing element in public sector


procurement, enabling national and local bodies to book train tickets from their desktops within a managed purchasing environment that sets travel rules and ensures compliance.


With such systems, it is very easy to define binding rules for travel.


These parameters are set at the outset – although they can be changed at any stage in line with procurement requirements – and can be used to drive travellers to the best available fares, which can deliver savings worth hundreds of pounds even on a single journey.


These rules might typically include:


• •


Inhibiting or denying completely access to first class travel.


Controlling access to “anytime” ticket types, which


Instant access to online attribution of transaction value against specific cost centres underpins all of the above functionality. It enables procurement professionals to track and analyse buyer behaviour and enforce compliance in line with organisational objectives and best practice.


“This ability to set rules is already having an impact on travel patterns,” says Jon Reeve.


“For example, we have seen a shift away from first class to standard for some time, with a commensurate reduction in average ticket values. Rail budgets can be managed more effectively and very substantial savings can be made by the adoption of a few simple principles, such as booking in advance and ensuring that ‘walk- up’ fares are kept to an absolute minimum.


“Non-compliant travel is where the budgets are hit hardest and although the imposition of 100% on-line adoption is brave, it is definitely the smart thing to do.”


pse 29


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36  |  Page 37  |  Page 38  |  Page 39  |  Page 40  |  Page 41  |  Page 42  |  Page 43  |  Page 44  |  Page 45  |  Page 46  |  Page 47  |  Page 48  |  Page 49  |  Page 50  |  Page 51  |  Page 52  |  Page 53  |  Page 54  |  Page 55  |  Page 56  |  Page 57  |  Page 58  |  Page 59  |  Page 60  |  Page 61  |  Page 62  |  Page 63  |  Page 64  |  Page 65  |  Page 66  |  Page 67  |  Page 68