Case Study: Consolidating 20 markets for PepsiCo
PepsiCo - Leading F&B brand
PepsiCo is one of the world’s leading food and beverage companies with a global portfolio of diverse and beloved brands.
In 2012 FCM commenced the task of consolidating 20 individual markets previously utilising 10 different travel agents for a travel programme including more than 3,500 travellers and 1,400 contractors.
Prior to commencing trade with FCM, PepsiCo had a fragmented programme spanning 20 countries using up to 10 different travel agents, multiple reporting systems, global distribution systems (GDS) and no single, clear lead for the travel programme.
With anticipated annual travel spend above USD40 million, the team at FCM had their work cut out for them, creating a single consolidated travel programme adhering to local iterations of a global travel policy for more than 5,000 travellers and contractors.
As with any global implementation of this size and scope there were a number of challenges which the global FCM team had to overcome:
- Policies – FCM identified during the implementation process a total of 14 differing and sometimes contradictory travel policies across the markets.
- Suppliers – approximately 150 additional preferred hotels across APAC and MEA were identified that did not exist within the PepsiCo global hotel program. Further to this, more than 100 global hotels were not aware they had been selected as a PepsiCo preferred hotel – this is significant as this meant the previous travel agency had not confirmed the hotel’s selection and rates were not loaded correctly into the GDS.
- Form of payment – differed across markets with company credit cards not available to all travellers as FOP in some countries; an invoice account with credit terms was delivered to rectify this.
- PepsiCo Thailand – after implementation it was uncovered that travel volumes in Thailand were 100% higher than forecast. FCM were able to immediately up-staff the total headcount by a further two travel consultants and one dedicated visa processing resource to meet demand.
- Travel administrators – many PepsiCo employees responsible for booking travel were resistant to change as they felt job security might be threatened as a result of the end-to-end service model. FCM was able to deliver a full and complete travel booking support for travellers and reduced the administration work in the booking process for these staff.
Led by the highly experienced FCM Global Account Manager, a global account management team comprising two regional account managers and in-country national account managers in each market; each country followed a tailored change management and communication plan to drive consistent program architecture and deployment utilising the client handbook developed specifically for PepsiCo.
The team worked to deliver:
- Consistent implementation plans and delivery in each location
- Implant services in Dubai and India with a central service solution in Dubai servicing Saudi Arabia and Bahrain
- Removal of implant services in Egypt and Jordan
- FCM platform implemented as single point of entry into the FCM technology eco-system across all countries
- Roadshow presentations in every market to travellers and travel bookers, including local language where required
- Preferred airline rates audited and loaded into booking system with more than 21 preferred airlines over 72 points of sale and more than 1,400 client nett fares
- Preferred hotel rates across 3 GDS audited and loaded into booking system with more than 7,500 rate audits completed in 40 days
- Traveller handbooks delivered in all markets detailing “how to” of PepsiCo’s travel programme, provided in English and local language where required
- End to end travel booking process launched including air, hotel, car, visa and leisure services
The PepsiCo response
“FCM has given us transparency over regions where we previously had no visibility.”
Craig Pisani, Global Procurement, PepsiCo
The swift implementation of the end to end service model and travel program saw a very strong shift in quantifiable results from the program, including:
- Average hotel room rate reduction of 12%
- Recommendations for a further USD1 million in programme savings through improvement of existing airline contracts and engaging new airline contracts
- Post implementation survey – 80% customer satisfaction score
- Annual customer survey (approx 6 months after post implementation survey) saw a further increase to 86% customer satisfaction
- Travel administrator support ratio to travel managers increased by 2 managers in major markets Dubai and Thailand
- Consolidated travel management reporting delivered each month for first year programme spend of USD32 million.