Travel management key challenges 14/15 - CIPS Speaker... · Key challenges – travel management...

2014

Travel management – key challenges 14/15

SCM Indirect Material

Siemens AG 2014. All rights reserved.

Key challenges – travel management 14/15

Internal

• Cost reduction – UK target of 25% reduction over 2 years

• Increasing amount of project business vs. transient travel, requires a different approach

• Increasing number of stakeholders internally

External

• Increasing air ticket prices / airline capacity and consolidation through alliances

• De-bundling of air fares by carriers

• Hotel capacity in key locations

Introduction



• Senior management involvement

• In-house vs. Outsource particularly for project work

• Improving buying behaviour

• Using suppliers as an additional resource

• Sandbox – supplier ideas program – built into supplier evaluation – development plan etc

• Communication with travellers

Facing the challenge

Introduction



TravelOut 25 spend reduction – Year 1 results

Reported savings achievement in UK FY13 = €1.9m

Senior management involvement In-house vs. outsource Buying behaviour Supplier resource Traveller communication

• Project sponsored by the UK CEO Andrew Hall



TravelOut 25 section on 2014 intranet Article in the Siemens UK magazine

Travel advice / savings ideas blog Updating of Siemens UK travel policy

Top 10 travel guidelines

MD and FD meetings with each sector

TravelOut 25




CWT white paper

Line manager information sheet

Hotel program benchmark

Financial report per sector

Taxi agreements in Frimley, The Crystal and Manchester

TravelOut 25

Top 50 travellers email

TravelOut 25

SCM

AG

HR

CC

CF

SCM

UK

CWT

Cross-functional meetings




TravelOut 25 – CWT support

CWT participated in Kick Off meeting and made presentation on savings opportunities

UK are supporting with Division Level reviews

To include Key Stakeholders that can support and drive recommendations for change

i.e. Division FD/MD and Key bookers

Reviews to focus on

TravelOut25 performance update

Awareness of spend patterns

Travel spend

Air Travel analysis

Average Ticket Price performance

Key Routes

KPI’s

Education and support to bookers to achieve objectives




TravelOut 25 – CWT support

Siemens Travel Policy support and reiteration by CWT Offline Operational Team

Referral to Travelnet/STN for Domestic/Continental point to point Air trips

Referral to Travelnet/STN for Hotels, UK Rail or Car rental

Lowest logical fare to always be offered in order to support missed savings reduction




Projects vs. Transient travel

Accommodation

• Approximately 70% of hotel spend in the UK now project related (approx 45% in 2012)

• Projects provide good opportunity for negotiations with chains included added value items

• 3rd party provider can make significant savings if allowed to manage project from end to end

• Serviced apartments good alternative for long term stays

• Ensure that procurement are first ones to make contact with hotels and not project managers / staff

• Consider allocations with late room release

Air

• Projects have to be advised in advance – rates with airlines for key routes

• Inclusion of excess baggage in route deals




Combating air price increases

• Fuel surcharges

• General surcharge (e.g. Lufthansa)

• Agency fees

• Credit card fees

• Increase advance booking period – target of 40% + in advance of 21 days (currently 38% for long haul)

• Increase acceptance of LLF - target of 90% for international trips (currently 73%)

• Increase in online booking adoption – average 83% for continental flights

• Steering via the online tool – lowest rates and also specific carriers for negotiation power

• Use agency offline process for excess baggage requirements, split ticketing for complex routes, use of additional offers such as chauffeur services




Air behaviour

Ensure all refunds are claimed as the tax on average makes up about 50% of the price of a continental ticket

On average only 1 in 6 bookings made in advance of 21 days were changed




Scorecards

• Provide detail on a business unit level

• List of employees out of policy available to support figures

• Creates competition between divisions and sectors

• Highlights missed savings potential




Supplier engagement

Agency support

• Limited resource internally for travel management

• Agencies provide valuable resource to allow us to reach more stakeholders

• Both Carlson Wagonlit and Prestige Hotel Reservations conduct face to face meetings with Siemens business units

• Savings identified from supplier involvement in day to day business

• Best practice can be shared based on account managers knowledge of other clients

• Siemens business unit meetings included in supplier development plans

“Sandbox”

• Supplier ideas program specifically for the Travel Agencies

• Ideas submitted via an online tool and reviewed on a country level by Siemens and CWT account manager

• Siemens travel manager reviews ideas and then rejects or approves




Sandbox




Traveler and booker communication

• Booker workshops with key divisions including key suppliers

• Siemens Social Network

• Agency enforcing policy and advising travelers

• Siemens UK magazine articles and employee broadcasts


Travel management key challenges 14/15 - CIPS Speaker... · Key challenges – travel management...

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