After travel savings, what's the next big thing?

| 0 Comments
KeleMohatle.JPGFor travel buyers who have gone online and realised the savings offered by online booking tools (OBTs) what is the next best thing?

Is it expense management integration?

This next step offers accurate reporting, recon and budget management, argues Kele Mohatle, CEO of travel procurement consultancy NaKo Consulting, in this month’s SmartProcurement.

OBTs are relevant to the effectiveness and efficiency of any corporate travel procurement programme that is considering more savings opportunities, policy compliance, empowering internal clients and aligning to best practices.

However, the needs of OBT clients have changed over the years - driven by cost containment and accurate, real-time reporting. To a large degree it has become all about the data, says Mohatle.

“Consequently, for clients already making full use of OBT (i.e. enjoying seamless and effective processes, realizing savings and consistently containing costs) reporting is the next big hurdle,” she says.

A challenge for corporates is aligning OBT report information (typically particular figures over a 12-month period) with the Finance Team’s different report requirements, especially at budgeting time.

A gap identified by many corporates is the accurateness of Total Cost of Trip (TCT): a Travel Manager will produce invoiced reports while Finance will produce invoiced inclusive of post-trip expense claims.

“This can be a nightmare for any CFO, especially if some of these post-trip expense claims need to be billed back to clients,” explains Mohatle.

Consequently, while cost containment and expense management is crucial for corporates using an OBT, it is the possibility of integration with an Enterprise Resource Planning (ERP) system that will make an OBT a winner.

OBT suppliers have responded with smarter, more seamless booking processes that include expense management tools.

Some OBTs can integrate with corporate ERP systems depending on the available infrastructure capability and the sophistication of both tools, says Mohatle.

However, the costs associated with integrating with ERPs and adding expense management tools can be deal breakers. Also, the capability of a corporate’s infrastructure to accommodate these developments must be considered.

Meanwhile, Mohatle noted that the above Travel Procurement scenario is regarded as Managed Travel 1.0; **the future is Managed Travel 2.0 (seen more in Global markets) which allows travellers:
1. to shop anywhere for their trips;
2. book at any platform as long as the Travel Manager gets the data;
3. book any supplier as long as the supplier is regarded as safe;
4. as long as they within budget; and
5. can make use of the corporate card.

**This was shared and presented by US based Industry consultant Scott Gillespie at the 2012 ITMSA conference.

Mohatle believes that these travel procurement programmes are guided by corporate culture, traveller behaviour and infrastructure level.

For more information contact Kele Mohatle at info@nakoconsultancy.co.za

Leave a comment


SmartProcurement Newsletter
X

Please enter your details below to receive the SmartProcurement Newsletter for FREE on a regular basis.

As part of the SmartProcurement Newsletter you will be receiving World Class Procurement News, Tools, Tips, Tactics, Procurement Training updates, Upcoming Events, and the latest Procurement Career Openings.

* Email Address:
* Title:
* First Name:
* Surname:
* Company:
  Position:
* Country:
* Public / Private:

 

Career opportunites

Operations Manager

  • >500 000 Gauteng Operations, Planning & Inventory Permanent Supply Chain
Our client within the FMCG industry with a ...More

Warehouse and Distribution Manager

  • >500 000 Gauteng Logistics & Warehousing Operations, Planning & Inventory Permanent
An exciting opportunity awaits for a Warehouse and ...More

Demand Planner

  • <500 000 Permanent
Get an opportunity to be part of one ...More

Procurement Manager

  • >500 000 Gauteng Permanent Procurement Management Procurement Officer / Specialist
An opportunity for a seasoned Procurement Manager, who ...More

Industrial Engineer

  • >500 000 Gauteng Industrial Engineer Permanent Procurement Consultant
An exciting opportunity that offers extensive exposure on ...More

Deputy Director: Procurement

  • >500 000 Contract Procurement Management Procurement Officer / Specialist Western Cape
Department of Economic Development and Tourism:Procurement Specialist, Ref ...More

DEMAND PLANNING MANAGER

  • >500 000 Gauteng Operations, Planning & Inventory Projects / Category Management
(Total Cost to Company R750k – R900K) excluding ...More

GLOBAL SUPPLIER PERFORMANCE MANAGER

  • >500 000 Gauteng Operations, Planning & Inventory Permanent Projects / Category Management
(Salary: R 1.3M –R1.5M, dependent on level of ...More

GLOBAL CATEGORY MANAGER

  • >500 000 Contract Gauteng Procurement Consultant Projects / Category Management
Total Cost to Company R1mil – R1.2mil excluding ...More

Project Manager

  • >500 000 Contract Procurement Management Projects / Category Management Western Cape
 Description:A well-known retail organization is looking for an ...More

PROCUREMENT ANALYST

  • >500 000 Analyst Gauteng Permanent Procurement Management
Description:A leading infrastructure development group with strong presence ...More

Commodity Manager: Fuels and Lubes

  • Commodities Gauteng Permanent Projects / Category Management
 Ensuring continuity of supply in line with business ...More

Senior Facilities Manager

  • >500 000 Commodities Gauteng Operations, Planning & Inventory Permanent
(Total Cost to Company R800K – R900K) Johannesburg Our ...More

ENGINEERING STANDARDS MANAGER

  • <500 000 >500 000 Gauteng Industrial Engineer Permanent Procurement Management
(Total Cost to Company R350K – R550K) JOHANNESBURGYou ...More

Supply Chain Analyst

  • <500 000 >500 000 Permanent Procurement Officer / Specialist Supply Chain Western Cape
(Total Cost to Company R350K – R550K)  SOUTHERN ...More

Security Manager

  • <500 000 >500 000 Gauteng Permanent Projects / Category Management Strategic Sourcing
(Total Cost to Company R350K – R550K) JOHANNESBURG This ...More

Demand Planner

  • <500 000 >500 000 Operations, Planning & Inventory Permanent Projects / Category Management
(Total Cost to Company R450k – R550k, dependent ...More

Procurement Specialist-Randburg

  • >500 000 Gauteng Permanent Procurement Management Procurement Officer / Specialist
(Total Cost to Company R700k – R800k including ...More

Solutions Architect

  • >500 000 Gauteng Industrial Engineer Permanent Projects / Category Management
(Total Cost to Company R1.3Mil – R1.1Mil including ...More

MANUFACTURING MANAGER - OLIFANTSFONTEIN

  • >500 000 Gauteng Permanent Projects / Category Management
(Total Cost to Company R850k – R950K including ...More