Case study: Revamping Corporate Travel Strategy
OTR: Admin/Analyst Solution
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Industry: Technology & Distribution
Countries consolidated with FCM: 9
2019 Travel Spend: $22.1M
2021 Travel Spend (annualized): $8.0M
This technology company was established after opportunities arose to create a spin off from a much larger firm in 2018. The parent company retained all the travel professionals, and travel management at the new company was assigned to someone in Procurement as part of a larger roster of indirect categories.
Faced with standing-up programs across the board, travel management quickly began eating up most of the procurement professional’s work time. Reacting and responding to questions about policy, expense processes, traveler service issues, generating reports, establishing budgets, vendor management, and more made up most of the day’s work. The Travel inbox was starting to overflow, leaving no time for establishing any corporate travel strategy, never mind the other categories that needed managing.
FCM Consulting, having listened to the specific needs and expectations of the client, implemented an OTR Admin/Analyst solution based on our Team of Experts approach, with pricing designed as a percentage of the company’s travel volume.
With OTR Admin/Analyst handling the day-to-day activities, managing the inbox, training travelers, and handling all the high-volume, low-impact tasks, the procurement professional was freed up to consider how travel strategically supported the new company’s goals. It also meant more time to be responsive to senior management and address the other procurement categories, knowing that travel was in good hands.
Implementing an OTR Admin/Analyst solution provided the company with clear benefits.
First, outsourcing made economic sense since the company was not in a position to hire new heads, and the OTR Admin/Analyst cost flexed with travel volume and effort.
Next, traveler and travel arranger satisfaction increased significantly because their questions were being answered promptly, professionally, and knowledgably. By eliminating traveler discontent, the entire program began to operate more efficiently.
Finally, the new manager had time to rewrite the travel policy, provide real budget guidance to the business units, and strike new deals with suppliers to support the program and generate savings.
FCM Consulting played a vital role in establishing our strategy, policies, and overall management of our program. Travel is just one of the many purchasing categories that I’m responsible for, so I couldn’t have done it without them.
Procurement Manager, Technology & Distribution Company