Is fragmentation in corporate travel playing havoc with your policy?

| 0 Comments

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.

Why is it a problem? Because even though the traveller is booking within policy, procurement and travel managers have little oversight over these types of travel purchases and any efficiencies they have spent time implementing to ensure full oversight over their travel spend are undermined. Our recent survey, in conjunction with the African Business Travel Association (ABTA) highlighted that most travel managers believe effective visibility of data to be very or extremely important in their role.

Is fragmentation going away? Unfortunately not as airlines, for example, look to introduce ancillaries and GDS booking surcharges. Content fragmentation is very much here to stay and travel managers will have to see it as a day-to-day challenge that will need to be managed in future. What's more, it's likely to add costs to your travel programme through inefficiencies, reduced productivity and new technological investments that will need to be made as a result.

To manage fragmentation in future, corporates need to improve the visibility over their travel programme, says Euan McNeil, FCM Travel Solutions General Manager. "For one, corporates should turn to their suppliers and encourage them to make their full content and services available through the tools or platforms they advise their travellers to book through.

"When travel bookers and travellers are forced to work on multiple platforms to find and book their travel, it's just another hurdle to ensuring that they comply with a travel policy. If it's not possible to integrate all content, the corporate will need to decide whether the value that supplier brings supersedes the negative impact of non-integration."

As McNeil explains, with fragmentation comes a great deal of manual intervention and time. "The consequences on productivity are also clear. Your staff will be spending time they could be spending on strategic tasks, on tasks that would have been simple through an online booking tool had all the content been at their disposal."

This is where your Travel Management Company partnership is critical, says McNeil. "Ask your TMC to share what integrated technology suites they offer that deliver on your company's travel needs, and how these fulfil a specific need to avoid content fragmentation where possible.

"FCM Connect, our integrated technology eco-system, gives companies access to a range of leading global and online booking tools. Travellers and travel bookers can easily plan, book and purchase complete travel itineraries within a company's guidelines, with access to an unrivalled choice of air, hotel, car and transfer options customised to suit any travel policy."

Important for travel managers to understand is that no matter how sophisticated their travel programme, or how strictly they are enforced, there will always be a certain amount of fragmentation.

However, in addition to mitigating the sources of fragmentation, it is essential for corporates to have their finger on the pulse on where likely sources of fragmentation could arise so that they can make the right business decisions.

For more information on technology specialising in travel, contact FCM Travel Solutions.

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

Demand Planner

  • <500 000 Gauteng Operations, Planning & Inventory Permanent Procurement Consultant
Salary: R500 000 - R500 000 per annum.Location: ...More

Fuel Logistics Manager

  • <500 000 Logistics & Warehousing Operations, Planning & Inventory Permanent Western Cape
Salary: R600 000 - R720 000 per annumLocation: ...More

Supply Chain Manager

  • <500 000 Gauteng Permanent Projects / Category Management Supply Chain
R650 000 - R700 000 per annum.Location: Johannesburg.A ...More

SENIOR BUYER

  • <500 000 Buyer Gauteng Permanent Supply Chain
R500 000 - R550 000 per annum,Location: Midrand,A ...More

Supply Chain Analyst

  • <500 000 Analyst Gauteng Permanent Supply Chain
Salary: R600 000 - R700 000 CTC per ...More

Supply Chain Manager

  • <500 000 Gauteng Permanent Supplier / Business Development Supply Chain
Salary: R600 000 - R700 000 per annum,Location: ...More

Demand Planner

  • <500 000 Gauteng Logistics & Warehousing Permanent Projects / Category Management
Salary: R450 000 - R550 000 per annum,Location: ...More

Demand Planner

  • <500 000 Gauteng Logistics & Warehousing Operations, Planning & Inventory Permanent
Salary: R500 000 - R500 000 per annum,Location: ...More

Warehouse and Distribution Manager

  • <500 000 Logistics & Warehousing Permanent Procurement Management
Salary: R650 000.00 - R850 000.00 CTC pa,Location: ...More

National Supply Chain Manager

  • <500 000 Gauteng Permanent Procurement Management Supply Chain
Salary: R900 000 - R1 000 000 per ...More

Procurement Specialist

  • <500 000 Gauteng Permanent Procurement Management Procurement Officer / Specialist
Salary: R380 000 - R420 000 per annum,Location: ...More

Supply Chain Analyst Lead

  • <500 000 Analyst Gauteng Permanent Supply Chain
Salary: R1 000 000 - R1 100 000 ...More

CIPS Tutor and Coordinator

  • Gauteng Permanent Projects / Category Management Supply Chain
Commerce Edge South Africa,Division: Commerce Edge Academy,Location: Johannesburg, ...More

Warehouse Manager

  • <500 000 Gauteng Industrial Engineer Logistics & Warehousing Permanent
Salary: R480 000 - R600 000 per annum.Location: ...More

Senior Buyer

  • <500 000 Buyer Gauteng Permanent Procurement Consultant
Salary: R600 000 - R650 000 per annum.Location: ...More

Operations Manager

  • <500 000 Gauteng Operations, Planning & Inventory Permanent Supply Chain
Salary: R700 000 - R800 000 CTC per ...More

Warehouse Manager

  • <500 000 Gauteng Logistics & Warehousing Operations, Planning & Inventory Permanent
R400 000 - R480 000 CTC per annum.Location: ...More

Supply Chain Analyst

  • <500 000 Analyst Permanent Supply Chain Western Cape
R400 000 - R500 000 per annum.Location: Cape ...More

Commodity Manager

  • <500 000 Commodities Gauteng Permanent Procurement Consultant
R650 000 - R750 000 per annumLocation: Cape ...More

Logistics Manager

  • <500 000 Gauteng Logistics & Warehousing Operations, Planning & Inventory Permanent
Salary: R 800 000 - R 900 000 ...More