ISM Travel & Events ISM Travel & Events ISM Travel & Events ISM Travel & Events

Graham Crawshaw MCIPS

Director of Content

June 2017

What does good look like? What does good look like? What does good look like? What does good look like?

Best in Class:Best in Class:Best in Class:Best in Class:

sets of insights

1,1001,1001,1001,100procurement reports per year

40404040

Global Network of Procurement ProfessionalsGlobal Network of Procurement ProfessionalsGlobal Network of Procurement ProfessionalsGlobal Network of Procurement Professionals

active participants

countries represented

industry sectors covered

events per year

151515157070707010,000+10,000+10,000+10,000+

185185185185

North AmericaNorth AmericaNorth AmericaNorth America

Chicago

New Jersey

New York

Boston

Philadelphia

San Francisco

Toronto

Budapest

Amsterdam

Birmingham

Dublin

Dusseldorf

London

Paris

Winchester

Zurich

Frankfurt

Copenhagen

Warsaw

Stockholm

South AmericaSouth AmericaSouth AmericaSouth AmericaMexico City

Sao Paulo

EuropeEuropeEuropeEurope

AsiaAsiaAsiaAsia

Kuala Lumpur

Tokyo

Singapore

Shanghai

Mumbai

Hong Kong

Dubai

AustralasiaAustralasiaAustralasiaAustralasia

Brisbane

Melbourne

Sydney

RoundTablesRoundTablesRoundTablesRoundTables: Regions and Cities: Regions and Cities: Regions and Cities: Regions and Cities

Our Clients IncludeOur Clients IncludeOur Clients IncludeOur Clients Include

Best in ClassBest in ClassBest in ClassBest in Class

Why Best in Class?Why Best in Class?Why Best in Class?Why Best in Class?

66 member companies participated66 member companies participated66 member companies participated66 member companies participated

Combined travel spend of $8bnCombined travel spend of $8bnCombined travel spend of $8bnCombined travel spend of $8bn

Grouped companies into the following categories:Grouped companies into the following categories:Grouped companies into the following categories:Grouped companies into the following categories:

BaseBaseBaseBase

StableStableStableStable

LeadingLeadingLeadingLeading

ProgressiveProgressiveProgressiveProgressive

1 - Category management and sourcing

2 Procure-to-pay policy and process

3 - Supplier relationship management

Survey SectionsSurvey SectionsSurvey SectionsSurvey Sections

4 - Contracting

5 - Engagement

1 1 1 1 ---- Category Management and SourcingCategory Management and SourcingCategory Management and SourcingCategory Management and Sourcing

Spend Spend Spend Spend breakdown:breakdown:breakdown:breakdown:

Airfares52%

Accommodation26%

Food and drink8%

Ground transportation8%

Entertainment6%

1 1 1 1 ---- Category Management and SourcingCategory Management and SourcingCategory Management and SourcingCategory Management and Sourcing

Planning the travel strategyPlanning the travel strategyPlanning the travel strategyPlanning the travel strategy

Regional and global Regional and global Regional and global Regional and global strategy combined with strategy combined with strategy combined with strategy combined with

a TMC relationship a TMC relationship a TMC relationship a TMC relationship

69%69%69%69%

1 1 1 1 ---- Category Management and SourcingCategory Management and SourcingCategory Management and SourcingCategory Management and Sourcing

Average business Average business Average business Average business travel spend travel spend travel spend travel spend influenced by influenced by influenced by influenced by ProcurementProcurementProcurementProcurement

78%78%78%78%

1 1 1 1 ---- Category Management and SourcingCategory Management and SourcingCategory Management and SourcingCategory Management and Sourcing

Managing nonManaging nonManaging nonManaging non----compliance within the travel policycompliance within the travel policycompliance within the travel policycompliance within the travel policy

1 1 1 1 ---- Category Management and SourcingCategory Management and SourcingCategory Management and SourcingCategory Management and Sourcing

Approach applied to benchmarkingApproach applied to benchmarkingApproach applied to benchmarkingApproach applied to benchmarking

2 2 2 2 ProcureProcureProcureProcure----totototo----Pay Policy and ProcessPay Policy and ProcessPay Policy and ProcessPay Policy and Process

Have corporate business travel Have corporate business travel Have corporate business travel Have corporate business travel requirementsrequirementsrequirementsrequirements been consolidated?been consolidated?been consolidated?been consolidated?

2 2 2 2 ProcureProcureProcureProcure----totototo----Pay Policy and ProcessPay Policy and ProcessPay Policy and ProcessPay Policy and Process

Compliance with using TMCs orCompliance with using TMCs orCompliance with using TMCs orCompliance with using TMCs orpreferred supplierspreferred supplierspreferred supplierspreferred suppliers

Average transactional Average transactional Average transactional Average transactional cost savings realised by cost savings realised by cost savings realised by cost savings realised by

using an OBTusing an OBTusing an OBTusing an OBT

40%40%40%40%

2 2 2 2 ProcureProcureProcureProcure----totototo----Pay Policy and ProcessPay Policy and ProcessPay Policy and ProcessPay Policy and Process

EmployeeEmployeeEmployeeEmployee policy for air travel policy for air travel policy for air travel policy for air travel what is included?what is included?what is included?what is included?

2 2 2 2 ProcureProcureProcureProcure----totototo----Pay Policy and ProcessPay Policy and ProcessPay Policy and ProcessPay Policy and Process

Travel policy for hotels and accommodationTravel policy for hotels and accommodationTravel policy for hotels and accommodationTravel policy for hotels and accommodation what is included?what is included?what is included?what is included?

2 2 2 2 ProcureProcureProcureProcure----totototo----Pay Policy and ProcessPay Policy and ProcessPay Policy and ProcessPay Policy and Process

Ground transportation travel policyGround transportation travel policyGround transportation travel policyGround transportation travel policy what is included?what is included?what is included?what is included?

2 2 2 2 ProcureProcureProcureProcure----totototo----Pay Policy and ProcessPay Policy and ProcessPay Policy and ProcessPay Policy and Process

TMCs being used by participating companiesTMCs being used by participating companiesTMCs being used by participating companiesTMCs being used by participating companies

3 3 3 3 ---- Supplier Relationship ManagementSupplier Relationship ManagementSupplier Relationship ManagementSupplier Relationship Management

What is included in a supplier performance management What is included in a supplier performance management What is included in a supplier performance management What is included in a supplier performance management (SPM) programme?(SPM) programme?(SPM) programme?(SPM) programme?

3 3 3 3 ---- Supplier Relationship ManagementSupplier Relationship ManagementSupplier Relationship ManagementSupplier Relationship Management

Adopting a supplier relationship management Adopting a supplier relationship management Adopting a supplier relationship management Adopting a supplier relationship management (SRM) programme(SRM) programme(SRM) programme(SRM) programme

3 3 3 3 ---- Supplier Relationship ManagementSupplier Relationship ManagementSupplier Relationship ManagementSupplier Relationship Management

Key performance indicators:Key performance indicators:Key performance indicators:Key performance indicators:

OBT adoptionOBT adoptionOBT adoptionOBT adoption

Telephone / email response timesTelephone / email response timesTelephone / email response timesTelephone / email response times

Average ticket priceAverage ticket priceAverage ticket priceAverage ticket price

IT uptimeIT uptimeIT uptimeIT uptime

Market share commitmentMarket share commitmentMarket share commitmentMarket share commitment

Target revenueTarget revenueTarget revenueTarget revenue

Online adoption percentage / online bookingsOnline adoption percentage / online bookingsOnline adoption percentage / online bookingsOnline adoption percentage / online bookings

Customer satisfaction and performance surveysCustomer satisfaction and performance surveysCustomer satisfaction and performance surveysCustomer satisfaction and performance surveys

Accuracy of dataAccuracy of dataAccuracy of dataAccuracy of data

4 4 4 4 ---- ContractingContractingContractingContracting

Negotiations with global suppliers Negotiations with global suppliers Negotiations with global suppliers Negotiations with global suppliers

4 4 4 4 ---- ContractingContractingContractingContracting

The TMC contract The TMC contract The TMC contract The TMC contract

4 4 4 4 ---- ContractingContractingContractingContracting

What a Procurement and TMC partnership aims to deliverWhat a Procurement and TMC partnership aims to deliverWhat a Procurement and TMC partnership aims to deliverWhat a Procurement and TMC partnership aims to deliver

4 4 4 4 ---- ContractingContractingContractingContracting

Most important requirements from a TMCMost important requirements from a TMCMost important requirements from a TMCMost important requirements from a TMC

4 4 4 4 ---- ContractingContractingContractingContracting

Benefits of a Procurement and TMC partnership:Benefits of a Procurement and TMC partnership:Benefits of a Procurement and TMC partnership:Benefits of a Procurement and TMC partnership:

Ability to direct travellers to preferred dealsAbility to direct travellers to preferred dealsAbility to direct travellers to preferred dealsAbility to direct travellers to preferred deals

Customisable OBTCustomisable OBTCustomisable OBTCustomisable OBT

Customised QBRsCustomised QBRsCustomised QBRsCustomised QBRs

InnovationInnovationInnovationInnovation

Knowledgeable teamKnowledgeable teamKnowledgeable teamKnowledgeable team

Quicker implementationsQuicker implementationsQuicker implementationsQuicker implementations

Seamless transitionsSeamless transitionsSeamless transitionsSeamless transitions

Timely communicationTimely communicationTimely communicationTimely communication

TMC account and ops managementTMC account and ops managementTMC account and ops managementTMC account and ops management

5 5 5 5 ---- EngagementEngagementEngagementEngagement

1.1.1.1. Profile your stakeholdersProfile your stakeholdersProfile your stakeholdersProfile your stakeholders

2.2.2.2. Understand their requirements, use their terminologyUnderstand their requirements, use their terminologyUnderstand their requirements, use their terminologyUnderstand their requirements, use their terminology

3.3.3.3. Align procurement activity to their business objectives Align procurement activity to their business objectives Align procurement activity to their business objectives Align procurement activity to their business objectives talk about benefits rather than savingstalk about benefits rather than savingstalk about benefits rather than savingstalk about benefits rather than savings

4.4.4.4. Add value Add value Add value Add value demonstrate knowledge of categories, demonstrate knowledge of categories, demonstrate knowledge of categories, demonstrate knowledge of categories, suppliers and marketssuppliers and marketssuppliers and marketssuppliers and markets

5.5.5.5. Start small, establish credibility, achieve quick winsStart small, establish credibility, achieve quick winsStart small, establish credibility, achieve quick winsStart small, establish credibility, achieve quick wins

5 5 5 5 ---- EngagementEngagementEngagementEngagement

Communicating the travel policyCommunicating the travel policyCommunicating the travel policyCommunicating the travel policy

5 5 5 5 ---- EngagementEngagementEngagementEngagement

Feedback for business travel or TMC projects? Feedback for business travel or TMC projects? Feedback for business travel or TMC projects? Feedback for business travel or TMC projects?

Best in Class Best in Class Best in Class Best in Class leading procurement organisationsleading procurement organisationsleading procurement organisationsleading procurement organisations

1. Travel is one of the highest outsourced categories

2. TMC is the partner for cost containment

3. Characteristics of leading procurement functions:

Global strategy, global TMC

Stakeholder involvement

External benchmarking

Compliance

SMART KPIs

Structured SRM programmes

Summary Summary Summary Summary what does good look like?what does good look like?what does good look like?what does good look like?

casme.com

THANKTHANKTHANKTHANKYOUYOUYOUYOU

Graham CrawshawGraham CrawshawGraham CrawshawGraham Crawshaw

graham.crawshaw@casme.com