travel management key challenges 14/15 - cips speaker... · key challenges – travel management...
TRANSCRIPT
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
SCM Indirect Material
Siemens AG 2014. All rights reserved.
• 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
SCM Indirect Material
Siemens AG 2014. All rights reserved.
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
SCM Indirect Material
Siemens AG 2014. All rights reserved.
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
Senior management involvement In-house vs. outsource Buying behaviour Supplier resource Traveller communication
SCM Indirect Material
Siemens AG 2014. All rights reserved.
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
Senior management involvement In-house vs. outsource Buying behaviour Supplier resource Traveller communication
SCM Indirect Material
Siemens AG 2014. All rights reserved.
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
Senior management involvement In-house vs. outsource Buying behaviour Supplier resource Traveller communication
SCM Indirect Material
Siemens AG 2014. All rights reserved.
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
Senior management involvement In-house vs. outsource Buying behaviour Supplier resource Traveller communication
SCM Indirect Material
Siemens AG 2014. All rights reserved.
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
Senior management involvement In-house vs. outsource Buying behaviour Supplier resource Traveller communication
SCM Indirect Material
Siemens AG 2014. All rights reserved.
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
Senior management involvement In-house vs. outsource Buying behaviour Supplier resource Traveller communication
SCM Indirect Material
Siemens AG 2014. All rights reserved.
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
Senior management involvement In-house vs. outsource Buying behaviour Supplier resource Traveller communication
SCM Indirect Material
Siemens AG 2014. All rights reserved.
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
Senior management involvement In-house vs. outsource Buying behaviour Supplier resource Traveller communication
SCM Indirect Material
Siemens AG 2014. All rights reserved.
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
Senior management involvement In-house vs. outsource Buying behaviour Supplier resource Traveller communication
SCM Indirect Material
Siemens AG 2014. All rights reserved.
Sandbox
Senior management involvement In-house vs. outsource Buying behaviour Supplier resource Traveller communication
SCM Indirect Material
Siemens AG 2014. All rights reserved.
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
Senior management involvement In-house vs. outsource Buying behaviour Supplier resource Traveller communication