Travel Procurement 411

1. Travel Procurement 411 NBTA CCTE Course Handouts, Part 1 August 23rd, 2009 San Diego

2. 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

3. is travel different?

4. 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

5. 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

6. Sourcing Complexity Carpeting Coal Laptops Temp Labor I.T. Outsourcing Advertising

7. k Consolidate Spend Specify Quality Set Targets RFx or Tender Analyze and Negotiate Decide and Contract Implement and Track

9. madesimple Lower prices! More market share! travel sourcing

10. the goal isvalue Safety Productivity Convenience Comfort Compliance Cost

11. four challenges

12. tight travel policies traveler support

13. Overly-tight travel policies: first then

14. every traveler is anexpert

15. theWIIFMfactor

16. iseasy buying outside of corporate

17. lost data lost undiscounted traveler itineraries spend

19. best approach

20. standard sourcing tools

21. travel- specific modeling tools

22. walkthetalk

23. crediblepromises

24. crediblethreats

25. recognize agood deal

26. End of Part 1