Gillespie’s Guide to Travel Procurement 1

Travel Procurement 411NBTA CCTE Course Handouts, Part 1

August 23rd, 2009San Diego

Gillespie’s Guide to Travel Procurement

Presented by Scott Gillespie

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(O) +1 440 248 4111 (Eastern Time Zone)

Scott.gillespie2008@gmail.com

Gillespie’s Guide to Travel Procurementhttp://gillespie411.wordpress.com

LinkedIn Profilehttp://www.linkedin.com/in/scottgillespie2008

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istraveldifferent?

Gillespie’s Guide to Travel Procurement

Common Travel Management Problems – How Do You:• Minimize transaction costs?• Control purchases at point of sale?• Maximize suppliers’ price competition?• Enforce travel policy compliance?• Make faster decisions about supplier bids?• Agree to realistic supplier goals?• Reduce your contract risks?• Track your savings?

Predominantly procurement problems

Gillespie’s Guide to Travel Procurement

Travel Is Not a Commodity — Right?We Could Be

Talking About…

Travel isn’t as different as we might think

… or Advertising

…Travel

… or Health Benefits

… or I.T. Consulting

… or Enterprise Software

Common Points

“It’s a significant expense category.”“The spend is very hard to control.”“It touches most employees.”“You can’t just switch suppliers like you can with office supplies.”

“It really affects sales and/or productivity— but you can’t quantify it.”

Gillespie’s Guide to Travel Procurement

LaptopsTemp Labor

I.T. OutsourcingAdvertising

CarpetingCoal

Sourcing Complexity

Gillespie’s Guide to Travel Procurement

k

Consolidate Spend

Specify Quality

Set Targets

RFx or Tender

Analyze and

Negotiate

Decide and

Contract

Implement and

Track

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More market share!

Lower prices!

made simpletravel sourcing

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SafetyProductivityConvenienceComfortCompliance

the goal is value

Cost

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four challenges

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travel policiestight

travelersupport

Gillespie’s Guide to Travel Procurement

first

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Overly-tighttravel policies:

then

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every traveleris an

expert

Gillespie’s Guide to Travel Procurement

the WIIFM factor

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is easybuying

outsideof corporate

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undiscountedspend

lostdata

traveleritineraries

lost

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best approach

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standard sourcing tools

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specifictravel- modeling

tools

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walk the talk

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credible

promises

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credible

threats

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recognize a

good deal

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End of Part 1