Why does Travel & Expense procurement still favour manual processes?

| 0 Comments

 

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.


Every edition of Travel Buyer (formerly Business Traveller) contains at least one article discussing cost saving initiatives and successes or creating general awareness amongst business travellers around how behaviour can influence an organisation’s costs.


I read with great interest, not because the topic is new (procurement officials or buyers are always looking for ways to reduce costs or purchase in the most effective and controlled manner), but because I am interested in the way the authors set about measuring and implementing cost savings intitiatives in an area that is largely fragmented and which lacks effective technology to accurately measure savings.


Why do I say this?


Simply because Travel Managers monitor, measure and report on the following:

• traveller behaviour;
• cost escalation/variance of a relevant booking from the time the booking is secured until such time as it is ticketed;
• where the traveller stays;
• which preferred vendor is used;
• how many times the traveller changes a booking or ticket;
• what time they travel;
• are they complying with company policy?
• Have they taken the cheapest option available at the time of booking?
• Can they be tracked in the event of an emergency?
• Have they returned their allowance and accounted for it correctly?
• Are they travelling and staying with a reliable supplier?


These are just a few of a Travel Manager’s daily tasks, and are only centred around the traveller: they do not take into account the required effort or focus on supplier relationships, nor on any internal measurements and reporting.


Therefore, I am amazed at the slow uptake of effective technology that will assist professionals to make their business efforts more effective. I am not just referring to self-booking tools (SBT) or an eloborate SBT with an expense reporting mechanism. I am referring to end-to-end solutions for T&E.


Ask 90% of all Travel Buyers how they manage all of the above, particularly in complex environments across multiple locations and across multiple Travel Management Company (TMC) partners, and it is either by way of e-mail, manual processes, and in some instances internal measurements or face-to-face visits with travellers.


“If a traveller changes a booking three times a month I visit that person’s office,” said Maureen Masuku (Foskor) in August’s Travel Buyer. Robyn Saunders, Global Travel Manager for Aurecon, notes that she is kept abreast of each and every travel booking by being copied into their emails.


However, while I advocate face-to-face meetings, I also understand the benefits of an environment where you can manage spend before it is incurred and stop or allow changes before they happen:

• An automated approval process that includes the cost centre owner and line manager, where needed, who are able to ensure that a trip is in budget before the cost hits the underlying cost centre and has a valid business reason and business value.
• Involving a risk manager in the request to prevent a traveller from being exposed to a potential danger before incurring the cost of the trip.
• Having access to real-time data.
• More importantly, owning your own data and consequently never having to be concerned with the cost and inconvenience of changing suppliers.


While this may sound like an impossible dream, it is, in fact, reality. If you would like to discuss how this can be achieved, contact Shirley.leroux@traveluxion.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

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