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Travel Procurement 411. NBTA CCTE Course Handouts, Part 1. August 23 rd , 2009 San Diego. Presented by Scott Gillespie. (O) +1 440 248 4111 (Eastern Time Zone) Scott.gillespie2008@gmail.com Gillespie’s Guide to Travel Procurement http://gillespie411.wordpress.com LinkedIn Profile
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Travel Procurement 411 NBTA CCTE Course Handouts, Part 1 August 23rd, 2009 San Diego
Presented by Scott Gillespie (O) +1 440 248 4111 (Eastern Time Zone) Scott.gillespie2008@gmail.com Gillespie’s Guide to Travel Procurement http://gillespie411.wordpress.com LinkedIn Profile http://www.linkedin.com/in/scottgillespie2008
is travel different?
Common Travel Management Problems – How Do You: • Minimize transaction costs? • Control purchases at point of sale? • Maximize suppliers’ price competition? • Enforce travel policy compliance? • Make faster decisions about supplier bids? • Agree to realistic supplier goals? • Reduce your contract risks? • Track your savings? Predominantly procurement problems
Travel Is Not a Commodity — Right? We Could Be Talking About… Common Points “It’s a significant expense category.” “The spend is very hard to control.” “It touches most employees.” “You can’t just switch suppliers like you can with office supplies.” “It really affects sales and/or productivity— but you can’t quantify it.” …Travel … or Health Benefits … or Advertising … or Enterprise Software … or I.T. Consulting Travel isn’t as different as we might think
Sourcing Complexity Carpeting Coal Laptops Temp Labor I.T. Outsourcing Advertising
k Consolidate Spend Specify Quality Set Targets RFx or Tender Analyze and Negotiate Decide and Contract Implement and Track
madesimple Lower prices! More market share! travel sourcing
the goal isvalue Safety Productivity Convenience Comfort Compliance Cost
tight travel policies traveler support
Overly-tight travel policies: first then
every traveler is anexpert
iseasy buying outside of corporate
lost data lost undiscounted traveler itineraries spend
travel- specific modeling tools