Total Travel and Expense Management is more than just online booking

| 1 Comment
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.

 

Once travel has been completed there are many transactions that are required internally within the company to close-off and complete a T&E transaction.


In fact, says Shaw, the travel request portion can often be the easiest transaction in the entire chain of travel procurement as most companies have processes in place for this. Whether paper- or email-based, or an internal application, travel requests will likely follow a pre-determined workflow.


What is often neglected, says Shaw, is the status of an organisation’s travel budget as real-time budget information and analytics are often not available at the time a manager approves a trip cost.


At any given time in a month, a travel budget for a cost centre is in constant flux; a budget holder may have 50 employees that travel on his designated cost centre. How can that budget holder be informed of the actual costs of approved travel, the pending cost of travel, third-party settlements, and the reimbursement claims without having to manually keep a spread sheet on these 50 travellers?


This method would be cumbersome and inefficient and may still lead to some nasty surprises at month-end when all the relevant costs hit the bottom line.


Informed financial decisions are difficult to make without financial data. Therefore, a budget holder wants immediate budget information available at the time of approving any travel costs. Preferably travel budgets should be immediately updated with:
a. Actual spend – approved and released for payment.
b. Committed spend – approved and awaiting third party payment.
c. Awaiting approval – potential spend, but not yet approved or paid.


Within the travel procurement lifecycle, many third party suppliers need to be paid. On any one travel itinerary it is common to have up to five different third-party suppliers: airlines, hotels, car hire, transfer companies and travel management companies.


Furthermore, expenses need to be reimbursed to travellers. Accounts payable must match invoices with approved travel requisitions. Credit card statements must be matched and then reconciled.


An organisation’s Accounts Payable often has the unenviable task of chasing paper, both internally and externally to enable a multitude of third-party payments, says Shaw. “If supporting documents are missing from this process and a payment to a credit card company is delayed the penalties can be significant.”


Another area of concern for many organisations is the necessary manipulation of the travel procurement process to enable the financial data to be entered into an ERP system, explains Shaw.


Companies that have sophisticated and expensive ERP systems have to find a “work-around” for travel, owing to the usual cost variances that occur for this spend item: receive a travel quotation; approve the quotation (without knowing if it is in budget); pay the various suppliers; and then insert the relevant PO number into the ERP. This actually defeats the entire purpose of the ERP system...


So what is total T&E Management? It is far more than just booking transactions and MIS from the travel management company - it is all the components of travel; the ability to manage the spend before it’s incurred; and control and report on all these activities on one independent and auditable application that provides immediate financial analytics for improved management of T&E.

 

For more information contact Tracey.Shaw@traveluxion.co.za

1 Comment

The toughest part of expense management is maintaining the bills, but after we started using Replicon time and expense tracking software, we are doing great that.

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 Planning Manager

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

Global Category Manager: CONTRACTS

  • <500 000 Buyer Commodities Contract Gauteng
Total Cost to Company R1mil - R1.2mil excluding

Project Manager :12-18 MONTH CONTRACT

  • <500 000 Contract Procurement Officer / Specialist Projects / Category Management
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

  • <500 000 Commodities Gauteng Permanent Strategic Sourcing
Description:Ensuring continuity of supply in line with business ...More

Senior Facilities Manager

  • <500 000 Gauteng Operations, Planning & Inventory Permanent Projects / Category Management
(Total Cost to Company R800K - R900K) Description: ...More

Supply Chain Analyst

  • <500 000 Analyst Permanent Supply Chain Western Cape
(Total Cost to Company R350K - R550K) SOUTHERN ...More

Demand Planner

  • <500 000 Gauteng Operations, Planning & Inventory Permanent Supply Chain
(Total Cost to Company R450k - R550k, dependent ...More

Procurement Specialis

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

Solutions Architect

  • <500 000 Analyst Gauteng Operations, Planning & Inventory Permanent
(Total Cost to Company R1.3Mil - R1.1Mil including ...More

Engineering Manager

  • Gauteng Industrial Engineer Permanent Procurement Management
Total Cost to Company R850k - R950K including ...More

Country Head of Procurement

  • Permanent Procurement Management Procurement Officer / Specialist
https://careers.peopleclick.com/careerscp/client_gsk/external1931/gateway.dofunctionName=viewFromLink&jobPostId=359235&localeCode=en-us CBS Procurement,Hub Head of Procurement To lead, ...More

Demand Planner

  • <500 000 Gauteng Operations, Planning & Inventory Permanent Projects / Category Management
https://www.tech-pro.co.za/pages/jobdetail.aspx#!Gauteng/Planning/Demand%20Planner/TP2005490/MSe Category: PlanningPosition Title: Demand PlannerSalary: R600 000 ...More

Head of Procurement

  • <500 000 Gauteng Permanent Procurement Management Procurement Officer / Specialist
https://www.tech-pro.co.za/pages/jobdetail.aspx#!Gauteng/Procurement/Head%20of%20Procurement/TP2005488/ZBuCategory: ProcurementPosition Title: Head of ProcurementSalary: R1.3 million ...More

Warehouse and Distribution Manager

  • <500 000 Gauteng Logistics & Warehousing Permanent Supply Chain
https://www.tech-pro.co.za/pages/jobdetail.aspx#!Gauteng/Logistics/Warehouse%20Distribution%20Manager/TP2005455/TMa Category: Supply ChainPosition Title: Warehouse and Distribution ...More

Supply Chain Manager

  • <500 000 Mpumalanga Permanent Procurement Officer / Specialist Supply Chain
https://www.tech-pro.co.za/pages/jobdetail.aspx#!Mpumalanga/Supply%20Chain/Supply%20Chain%20Manager/TP2005448/LMa Category: Supply ChainPosition Title: Supply Chain Manager ...More

Industrial Engineer

  • <500 000 Gauteng Industrial Engineer Operations, Planning & Inventory Permanent
https://www.tech-pro.co.za/pages/jobdetail.aspx#!Gauteng/Consulting/Continuous%20Improvement%20Manager/TP2005489/SNh Category: ConsultingPosition Title: Industrial EngineerSalary: R900 000 ...More

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