Travel

6 mistakes that procurement makes when crafting a travel RFP

LloydBarkhuizen_small.jpgThe arduous RFP (Request for Proposal) process is a bit like being forced to eat your greens as a child. You don't want to do it, but you're continually told that it's good for you.

But, that's not necessarily the case. RFPs are only 'good' for you and your business if you execute them properly. In this month's SmartProcurement, Lloyd Barkhuizen, Director: South Africa and Africa, FCM Travel Solutions, outlines six common pitfalls to avoid when inviting suppliers to pitch for your organisation's travel contract.

Join us at Smart Procurement World's Gauteng Indaba on 18 & 19 September where Lloyd Barkhuizen will discuss how to use big data to make more informed decisions around travel spend, traveller friction and travel programme efficiencies.

How to procure the right travel partner

EuanMcNeil_100.jpgThey say people do business with people they like. That may be true in organisations that have a rather flexible approach to procurement, but in the world of travel management it's often more to do with the bottom line than who plays a better game of golf...

Selecting the right Travel Management Company (TMC) to support your organisation can often be a daunting and drawn-out process, especially when you struggle to differentiate the services offered by each TMC, says ‎Euan McNeil, GM FCM Travel Solutions South Africa, a division of Flight Centre Travel Group. "The secret to finding the right match for you is to understand that what you put in, is what you get out."

How are you measuring your corporate travel ROI?

EuanMcNeil_HS.jpgTravel managers have traditionally been encouraged to keep their travel costs under control and to not use travel as a tool to achieve results.

These notions are being challenged by travel management companies, which believe that travel should be seen as an investment instead of purely a cost. After all, how can a business grow and achieve its goals without business travel?

In many company structures today, travel remains a fixed cost, lumped as a procurement department responsibility.

Is fragmentation in corporate travel playing havoc with your policy?

EuanMcNeil_HS.jpgCorporates, suppliers and travel management companies (TMCs) need to work together to help improve transparency and reduce the impact of fragmentation on costs and efficiencies.

What is fragmentation? It's when staff try to book travel within their travel policy but are forced to access different sites to source that travel other than the company's preferred procurement channels and processes.

Do SA business travellers toe the travel-policy line?

 

TravelPolicy.jpgTraveller non-compliance is an increasing area of concern among travel buyers and managers internationally, with great efforts made to persuade travellers of the benefits of compliance that extend beyond “because the company said so”.

A recent study conducted by FCM Travel Solutions and the African Business Travel Association (ABTA) revealed that the level of non-compliance among South African travellers is limited, however. At least 42% said that their travellers rarely or never booked out of policy, with a further 39% indicating that it didn’t happen often.

Is your travel technology a strategic procurement partner?

 

EuanMcNeil_HS.jpgWe’re in the throes of the 4th industrial revolution, where technology has changed the way we live and do business. Research shows that by 2020, half of the world’s business travellers will be millennials. With this in mind, it’s not surprising that the role of travel management companies has evolved way beyond making travel bookings.

Offering an online booking tool is no longer sufficient. To remain competitive, travel management companies need to draw on the latest technologies to create integrated travel ecosystems through which they can help their clients achieve specific business objectives.

Process-driven travel management has evolved into a strategic procurement function, requiring professional skills in benchmarking suppliers, issuing RFPs, negotiating contracts and collecting data for KPIs, says Euan McNeil, General Manager of FCM Travel Solutions SA, in this month's SmartProcurement.

Travel benchmarks point to behaviour massively driving costs in 2017

 

AlanLow_2013.jpgThe domestic corporate travel market is set to undergo many subtle changes in 2017, says Alan Low of category benchmarking company Pi. With a forecast of stagnant economic growth, downgrades and political uncertainty, organisations will be looking for more savings and greater efficiency.

The interplay between travellers, travel managers and service providers, such as Travel Management Companies (TMCs) will become vital to managing traveller behaviour and travel processes.

R3 600 - the cost of a purchase order in government

 

NhlanhlaNene.jpgThe central procurement office (CPO) created by Treasury to leverage volumes in the government has already led to savings amounting to billions of rand, says Finance Minister Nhlanhla Nene.


"The cost of a purchase order will be reduced from approximately R3 600… to between R500 and R750 using the new technology platforms,” said Nene, in a written reply to a parliamentary question by Democratic Alliance MP Malcolm Figg.

Leveraging the efficiencies of payment cards to manage travel

 

Corporate-Cards-Not-Just-For-Travel.jpgTravel and Entertainment (T&E) is a critical expenditure category for nearly all organisations. Typically, it is the second largest controllable expense after salaries and benefits. In all cases, however, it is no longer regarded as best practice but essential practice for a successful T&E programme to deploy a corporate card, advises Master Card in this month's SmartProcurement.

Current procurement methods do not support mini budget's austere measures

 

TraceyShaw.jpgMany of the key items subject to austere measures under Finance Minister Pravin Gordhan’s mini budget fall under the Travel and Expense (T&E) portfolio.


While these cost-cutting measures are a step in the right direction to curb excessive spending, Tracey Shaw, of travel technology company TraveluXion, wonders how they will be implemented in practice if procurement methodologies are still outdated and dependent upon fragmented processes across various suppliers, without any supporting technology?

Why does Travel & Expense procurement still favour manual processes?

 

Multitasking.jpg

Shirley Le Roux, MD of TraveluXion, wonders why there has been such a slow uptake of effective technology by travel procurement professionals, particularly considering that they work in complex environments across multiple locations and across multiple Travel Management Company (TMC) partners, in this month’s SmartProcurement.

Is travel and expense expenditure NB in your organisation?

  

Calculator.jpgShirley Le Roux, MD of TraveluXion gives SmartProcurement her insights into the answer to this question that has resulted in companies not having visibility of all potential T&E expenditure prior to approval against applicable budgets, and thus not extracting the associated business value. 

 

Total Travel and Expense Management is more than just online booking

TraceyShaw.jpgAll too often a Travel and Expense (T&E) Management programme is considered completed and rolled-out if a company has successfully implemented an on-line booking tool that improves travel policy compliance and reduces overall transactions costs.


Recent research indicates that global best practices for organisations is to embrace a total T&E Management technology solution, of which an on-line booking tool is but one component, Tracey Shaw, TraveluXion’s Head of Sales and Marketing, told SmartProcurement.

 

Managing supplier relationships in travel procurement

KeleMohatle.JPGManaging supplier relationships is one of the key components of a travel procurement programme says Kele Mohatle, CEO of travel procurement consultancy NaKo Consulting, in this month’s SmartProcurement.

Do Voyager Miles make commercial sense?

Airline_usage_by_carrier.pngWithin the context of Purchasing Index's (PI's) Domestic Air Travel benchmark report, SAA continues to make up the bulk of domestic carrier usage (as indicated in the graph alongside for the five benchmark routes for the period Aug-Oct 2012).

In this month’s SmartProcurement Alan Low wonders if this is justifiable?

Top 4 travel and expense management challenges

ShirleyLeRoux.pngShirley Le Roux, MD of TraveluXion gives SmartProcurement her insights into the top challenges and key focus areas around Travel and Expense Management as per the Aberdeen Group Survey published in March 2013.

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