ASK THE EXPERTS
BY MARTIN FERGUSON
LOOK AFTER THE PENNIES…
WITH FEW EXCEPTIONS, companies and organisations spend most of their travel budgets on air travel and accommoda- tion. It is no surprise, therefore, that procurement departments and travel buyers dedicate a great deal of effort to analysing air and hotel programmes. For many procurement professionals, travel may only be a small segment of their overall remit. Finding time to drill down on smaller areas may be challenging, but unmanaged spend on dining, ground transportation and supplier ancillaries can be significant. Gaining visibility and control of these outgoings could lead to a significant reduction in travel and expenses (T&E) and more money to spend on travelling to visit clients and prospects.
THE
CHRIS POUNEY, managing director, Severnside Consulting
THERE ARE RICH PICKINGS to be had by effecting change in previously unman- aged areas. It will vary by organisation, but car transfers, restaurants, mini bar, small meetings, in-flight wifi or even hotel laundry can be examined to great success. Even the smallest changes can drive positive behaviour and reduce cost. The ‘Hawthorne effect’ describes how people are more likely to perform and comply when they know they’re being watched. You can’t manage what you
38 BBT NOVEMBER/DECEMBER 2014
FINDING TIME TO FOCUS ON SECONDARY SPEND CAN GENERATE MAJOR SAVINGS
CONSULTANT
can’t measure. Pull spend data from your expense system and corporate card, then prioritise your objectives. Implementing spend caps can be an effective way of controlling spend, although care must be taken to position it as a maximum, and not an allowance, or else spend could increase. Rather than managing a huge number of suppliers, have one act as a conduit to the rest. Car booking platforms, such as One Transport or Groundscope, are a great example of this approach. For dining, schemes such as Gourmet Society offer corporate membership for dining discounts.
BUYINGBUSINESSTRAVEL.COM
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