OUTSOURCED & INDEPENDENT

TRAVEL CATEGORY

MANAGEMENT

Strategic Management

       Optimising Cost

 

BRIDGING THE GAP

BETWEEN TRAVEL BUYER AND SUPPLIER. 

We support corporate clients through providing an outsourced procurement and management function for the travel category.  By outsourcing this function to a subject matter expert, you will achieve additional efficiencies and greater capacity within your organisation - and greater savings. 

As an independent procurement consultancy we are able to advocate your best interests at all times, without bias. Maintaining healthy relationships with your internal stakeholders and current suppliers is vital to the success of any project and therefore we are committed to supporting your business through working closely with all your existing suppliers, in particular, your Travel Management Company.

Our clients vary in size and so does their needs which is why we approach each project in a unique and holistic way,  delivering the right amount of assistance in the right areas where you need it. 

OUR SERVICES

Depending on the service scope and requirements, a fee structure will be determined best suited to your needs. This may vary between a fixed project or a monthly fee. Either way, you will have us as your dedicated travel procurement managers and we will support you all the way. The arrangement is structured to suit each specific client, but the objective is always the same – to relieve you of as much of the procurement and management function as is operationally possible and to provide you with an independent and objective consulting service.

You will have a subject matter expert at your disposal at a fraction of the cost.

Not only are you doing less but, it will also cost you less.

KEY FOCUS AREAS

01

APPLYING INTELLIGENT ANALYTICS TO DRIVE COMPLIANCE

02

DEVELOPING MODELS TO MEASURE SAVINGS, CONTRACTING & CHANGE MANAGEMENT

03

SIMPLIFYING THE  PROGRAM, CONSULTING & STRATEGIC MANAGEMENT

WHY IT IS IMPORTANT

Travel and associated expenses are often the second or third largest area of an organisation's controllable spending. Because this category is complex, dynamic, and emotive for travellers, an opportunity to add value and reduce costs exists.

 

The corporate travel supply chain is complicated because of the multiple airlines, hotels, travel management companies, and other suppliers involved, where pricing is both direct and indirect. Regardless of how travel is being booked within your organisation, there is a complex package of systems, services, and technology capabilities, with numerous fees in which the performance and value vary greatly, which is the supply chain's biggest challenge. This highlights the importance of enlisting the services of an independent and unbiased subject matter expert who understands the entire travel supply chain to guide and support you in identifying the gaps, savings opportunities and demonstrate a reimagined way of travel procurement.

WHY IT'S CHALLENGING 

TO MANAGE

All the reasons why the travel category is challenging to manage, are the very reasons why it makes sense to outsource the management function to a subject matter expert. 

Category Expertise


Each expense category, travel in particular has its own cost drivers. market conditions, contract terms and other nuances. A deep understanding of each of these facets is required to manage spend effectively,

Internal Resources


Procurement teams rarely have the time or the data to dedicate adequate attention to this area of spend. Purchasing is often too busy feeding the production floor and many organisations have a list of high competing priorities.

Executive Buy-In


With a common misunderstanding of low potential for savings, many executives neglect this area of spend in favour of strategies that offer more immediate (and visible) rewards. Therefore, there is a  reluctance to commit resources to uncover savings opportunities.

Internal Controls


Suppliers are often added to the supply base and program in an ad hoc fashion, resulting in maverick spend without suppliers being part of a strategic plan. Without a documented strategy and designated person, the spend will go largely unchecked.

Data & Visibility


It is only possible to ensure that industry best pricing is realised by having external benchmark data. This is a challenge because it's not readily available and all suppliers are trying to maximise their revenue and margin. It is also true that the power of already available data is not harnassed adequately.

Fragmented Spend


There are usually more suppliers than necessary within a category. In additiion to multiple categories to manage, organisations may simply not have the time to dive into the established support relationships with each one appropriately. In these instances, potential economies of scale are negated through weakened buying power.

"Consulting can be invaluable when it comes to making decisions in areas of indirect procurement.  Sourcing strategies, sustainability, technology platforms, risk management, and contract management are all core parts of the procurement strategy. Consultancy firms need to help manage high-performance departments, develop, and then deploy a clear strategy and vision to become more effective and efficient."

Supply Chain Digital, April 2020

NEWS AND ARTICLES

CONTACT US:

  • White LinkedIn Icon

© Copyright 2020, All Rights Reserved 

Address:

Cape Town, Western Cape