Dismantling the traditional silos and creating new efficiencies in managing travel costs

Transcription

1 Dismantling the traditional silos and creating new efficiencies in managing travel costs

2 Traditional Approaches why are we still in this place? The situation today? Can we say categorically that our spend data is accurate and enables us to fully understand the true expenditure cost? Are some of us still dependent on an airline or hotelier to let us know what and where we have spent the dollars? With the exception of the real non industry technology innovators ( ie mobility services companies such ContGo)? What real innovative travel management solutions have we seen in the past 3 years? Why are we still applying a silo principle to procurement When and who will make the move; break down the barriers and provide total travel management solutions What are total travel management solutions? What does all this really mean?

3 Each supplier is reviewed isolation i.e. air, car, hotel, TMC, credit card and now driven by the tech companies Self Booking Tools Dismantling the traditional silos and creating

4 Each supplier is reviewed isolation i.e. air, car, hotel, TMC, credit card and now driven by the tech companies Self Booking Tools Dismantling the traditional silos and creating Phase 1 on the maturity path Identify the spend, formal review all supplier arrangements Review policy, implement new supplier arrangements Monitor contracts and improve Establish reporting and tracking Implement controls and continuously monitor

5 Each supplier is reviewed isolation i.e. air, car, hotel, TMC, credit card and now driven by the tech companies Self Booking Tools Dismantling the traditional silos and creating Phase 1 on the maturity path Phase 2 on the maturity path Improve supplier contracts Implement Duty of Care Management Tweak supplier arrangements Improve Policy Compliance Rely upon supplier reporting Move online Improve visibility of cost Identify the spend, formal review all supplier arrangements Review policy, implement new supplier arrangements Monitor contracts and improve Establish reporting and tracking Implement controls and continuously monitor

6 Each supplier is reviewed isolation i.e. air, car, hotel, TMC, credit card and now driven by the tech companies Self Booking Tools Dismantling the traditional silos and creating Phase 1 on the maturity path Phase 2 on the maturity path So what is a fully matured program? Improve supplier contracts Implement Duty of Care Management Tweak supplier arrangements Improve Policy Compliance Rely upon supplier reporting Move online Improve visibility of cost Identify the spend, formal review all supplier arrangements Review policy, implement new supplier arrangements Monitor contracts and improve Establish reporting and tracking Implement controls and continuously monitor

7 World Class Program Contract Goals, clear management and approach understood by all Total Visibility of the cost Adherence to policies & guidelines A connected supplier relationship circle Communication services that update, inform, track, locate and support either the traveller or traveller booker Flexibility with safety Better application of resources and data : Better data : spend data which is online or on tap Hotel folio data : which is available and driver for improvement Executive dashboards - measured programs Integrated resources & systems & suppliers

8 What is now a given and not a best practice tool? What is old hat? World Class Program Contract Goals, clear management and approach understood by all Total Visibility of the cost Adherence to policies & guidelines A connected supplier relationship circle Communication services that update, inform, track, locate and support either the traveller or traveller booker Flexibility with safety Better application of resources and data : Better data : spend data which is online or on tap Hotel folio data : which is available and driver for improvement Executive dashboards - measured programs Integrated resources & systems & suppliers

9 Online travel booking technologies Dashboards? Benchmarking? Web Based Reports? Travel Program Benchmarking? Performance Score Cards? A World Class Program Clear management guidelines, contract goals and management approach understood by all Total Visibility of the cost Adherence to policies & guidelines A connected supplier relationship circle Communication services that update, inform, track, locate and support either the traveller or traveller booker as they move and travel Flexibility with safety Better application of resources and data : Better data : spend data which is online or on tap Hotel folio data : which is available and key driver for improvement Executive dashboards - measured programs Integrated resources & systems & suppliers

10 What do we now need? Well informed data & information Live Ongoing Implementing cost reductions strategies on a continual basis What are we getting over? Travel collection data tools which read like a history book who today Drives or walks backwards who is interested in what was lost and happily for the past 10 years well tracked and reported Who hates the words lost savings report What is the only real source of accurate data?????????

11 What do we now need? Well informed data & information Live Ongoing Implementing cost reductions strategies on a continual basis What are we getting over? Travel collection data tools which read like a history book who today Drives or walks backwards who is interested in what was lost and happily for the past 10 years well tracked and reported Who hates the words lost savings report What is the only real source of accurate data? Reservations System Credit Card

12 Who will go for it or who wants to be like Vincent Kompany in the picture? 1.Innovative corporate clients are the real change managers, most new concepts are driven by clients who ask why cannot we not have.? The Challenge 2.GDS mentality possibly this industry has the greatest opportunity for innovation and change instead they are constrained by their need to collect and distribute revenue they remain pushers of work flow! 3.The TMC s are not innovators they are solution seekers and integrators of systems. The TMC is too focused on managing the day to day to invent new approaches. 4.There is no lack of multi talented products and solutions, but there is lack of desire to break down the barriers and move to new ground 5.External providers of allied T&E products are now driving change, offering solutions & developing new partnership all to improve the procure to pay process.

13 New Thoughts..New Concepts If all communication lines went down and you went to the airport in Astana - what tool would help you get away immediately? Easy the credit card! Which industry has now identified that it needs to grow closer relationships with the travel industry and offer streamlined solutions to customers. Payment & Reservations? How far away are we from mobile technology that has preloaded, policies, rules, contract rates & deals, can monitor, approve, charge, track and report and update instantaneously back office systems which inturn match with all charges and completes the procurement cycle? The partnership circle needs to be supplier, reservation system and the charge card. The time has come to merge the silos of supply! New solutions, new partnerships by must either come together to create new innovations or solutions or the buyers themselves will identify the best in class and undertake the task and become the innovators!

14 New Demands, The Card New Capabilities Issuer, EMS and Client Functional Integration

15 Corporate Credit Cards Evolved from a status symbol to essential tool Cornerstone of self-service payments process Value added card data from partners TMCs Others But often overlooked,

16 The Card Holders Themselves Have the spend knowledge What was acquired Why it was incurred We need to harvest the crop and make informed decisions!

17 Card Administration Buried in AP functions Junior levels Transactional focus Little strategy input Few reports

18 Card Administration Buried in AP functions Junior levels Transactional focus Little strategy input Few reports

19 The Trends

20 Corporate Cards Revisited Acceptance is everything Don t ask us, ask your travellers! Costs and risks associated with out-of-pocket are high and often overlooked Card Credit limits aligned to actual needs Consider Travel Account for air spend Cash where needed assists efficiency

21 Travel Accounts Centralised processing for air content Reduce credit limits required for cardholders Better working capital management for Treasury Ease travel payment dilemma for travellers ineligible for cards Data managed in EMS

22 Partnering with the Card Issuer Broad experience across many industries Access to a range of tools Best practices Issuer tools such as Visa PerformSource, Visa MultiNational Account Managers generally like to help!

23 ERP-based Expense Systems are less than ideal We didn t do ourselves any favours choosing <ERP> to manage expenses Treasury Manager Global Company

24 ERP-based expense systems are suboptimal Purpose-built EMS have vast power over ERPs Web-based for easy access - anywhere Custom built UIs to align transaction processing to business styles and requirements Workflows to suit transactional needs Amazing reporting capacities incl Enhanced Data

25 Expense Management Systems Low cost to own and operate Simple to configure to gather information Easy user training Rarely replaced TMC s, Issuer and cardholder s data in a single site Long term access to historical information!!!!

26 TMC Enhanced Data

27 Hotel Enhanced Data Form

28 Hotel Enhanced Data

29 The Challenge Turn Card Administration away from their transactional focus Engage across the organisation to leverage the spend data embedded in Corporate Cards Make Card Administration a dynamic and integral part of the category manager s armoury

30 Buddy Up with Your Card Admin Go back to basic and review process end-toend Focus on information storage not just compliance Share ownership of the Expense Process don t leave it to Finance or AP, or try to do it yourself

31 In closing Our role is to challenge the Travel Category Managers to rethink their role Understand that travel payment are a critical part of the Travel process, integral with the travel Broaden your influence beyond negotiating rates To understand that your travellers and your EMS will deliver valuable information into your hands

32 Thank You Please feel free to meet us at the ANZ stand, Virginia and the ANZ team will be happy to discuss any aspect of this presentation, your travel or card program further